Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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This is a company listed on the Vienna Stock Exchange and the price of the shares is currently €39,39. It has a PE ratio of 27.3. The company’s price shot up from €30,00 in August to €40,00 by October on the good news, for the company, that its E-toll project in South Africa would go ahead. It has subsequently traded as high as €45,00 but due to a write down on the project, they are back at €40,00. The write down relates to opposition to the project in Gauteng and as a result they received less compensation from the project than they anticipated. I think that this is a perfect illustration of the role of a Stock Market and how, with a well researched opinion, you can ultimately make money – but it also illustrates how nothing is certain. Just as some people may feel that the E-toll system is guaranteed to succeed and buying a share is now a sure bet on good profits, there will be others who will tell you that collection of the money that has to be paid will prove impossible, that opposition to the system will eventually make it fail and that they would never buy the share. Time of course will reveal the answers for everyone and with hindsight, everything always does look obvious. Building a share portfolio, slowly buying into shares that you believe are going to do well, as Warren Buffet has shown, can certainly lead to wealth. It is a little bit harder to buy international shares, but all online brokers in South Africa do provide an off-shore facility for their clients and for example, for R10 000,00 right now could buy you 17 shares of the company. Let’s see how it is doing in 18 months.
Posted by Michael de Broglio on Wednesday 02-Apr-14
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Comments
Cindy said:
on Friday 04-Apr-14 04:07 PM
E-TOLL!! I get a headache when I think of it. David said everything that there is to say.
Tersia said:
on Thursday 03-Apr-14 08:38 AM
I agree with David. Wont get an e-tag, there is no way in hell. Its only a matter of time before the system collapses, I hope! I also agree with Jade, the e-toll is such an unnecessary burden on all of us that is suffering enough as it is with the petrol constantly increasing and everything else.
Sorea said:
on Thursday 03-Apr-14 08:22 AM
And why is our dear Pres the only one that is allowed to refuse to pay for something that he did not ask for?
Bianca Els said:
on Wednesday 02-Apr-14 03:46 PM
100% with David on this one!!!!!
Juliet said:
on Wednesday 02-Apr-14 02:44 PM
I don't think profiting off other peoples' suffering is right. And having to pay etoll is making the citizens of SA suffer. Zuma has said he and his family haven't benefited from the Nkandla upgrade at all. So why doesn't he give back the R250 million and scrap etoll?!?!?!?
Jade said:
on Wednesday 02-Apr-14 02:40 PM
I am really not in that part of my career where I am comfortable enough to buy shares. Perhaps in a few years time, for now I'm focusing on rent and food.
I like many others, intensely dislike the E-tolls and think it is an unnecessary burden on South Africans who are struggling enough as it is.
Safia said:
on Wednesday 02-Apr-14 02:32 PM
PE is already a bit high?
Elektra said:
on Wednesday 02-Apr-14 02:21 PM
I'm still waiting on my bills to come in. So far nothing. This system is all round atrocious.
Simone said:
on Wednesday 02-Apr-14 10:45 AM
Hahaha, I love David's comment! Totally agree!
Sally said:
on Wednesday 02-Apr-14 09:51 AM
One should be careful where you invest or buy shares in as it is all a gamble.
david said:
on Wednesday 02-Apr-14 09:29 AM
i do not have an e-tag. i will not get an e-tag. i have received their bills. i simply throw them in the rubbish Kapsch will not get a cent from me, and i hope the company collapses. them, scamral and our government are a bunch of bastards, and i hope they all die slow and painful deaths.
i forgot to add, previously i seldom used the highways. now i do so at every possible opportunity...
Bianca R said:
on Wednesday 02-Apr-14 09:28 AM
One has to be very careful of where you invest your money as nothing is ever guaranteed. On the other hand, you may be lucky and make a fortune off of investment and buying shares into a company.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!