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General Category => Shares => Topic started by: jaDEB on April 10, 2014, 09:21:40 am

Title: PSG Konsult
Post by: jaDEB on April 10, 2014, 09:21:40 am
IPO

Financial services group PSG Konsult has announced its long-awaited listing on the JSE along with its financial results for the year to February 2014.
Title: Re: PSG Konsult
Post by: Shi on April 10, 2014, 01:14:12 pm
Details from PSG Konsult's website:

current price: 699
PE: 34.95
D/Y: 1.62
Shares in issue: over 1.2B
Market cap: R8.8B

Often trades over a million shares. On the 5th of March it was trading at 500. The push up to 700 seems to be based on the listing news.
Title: Re: PSG Konsult
Post by: jaDEB on April 10, 2014, 01:23:50 pm
PE is nogal high ..  8)
Title: Re: PSG Konsult
Post by: Moneypenny on April 10, 2014, 01:39:23 pm
New friends for Sanlam & Coronation.
Title: Re: PSG Konsult
Post by: franz on June 09, 2014, 06:28:29 pm
PSG Konsult to list on the JSE Wednesday, June 18.
Title: Re: PSG Konsult
Post by: gcr on June 09, 2014, 06:47:24 pm
Should be interesting to see at what price it opens and ultimately closes on 18th - last traded at R 7.45 on 30th May 2014 when it was suspended as an over the counter traded share
Title: Re: PSG Konsult
Post by: Snakepit on June 10, 2014, 08:12:14 am
Guys a little help please. OTC shares - where do you trade them? How do you trade a share that has not been listed yet?

Same question regarding Preference shares. How and where do you trade them?
Title: Re: PSG Konsult
Post by: gcr on June 10, 2014, 09:22:50 am
Supposedly all OTC shares will cease to trade - the JSE has closed down this operation as there are very few regulations governing these transactions and the purchaser does not have the same protection as they could derive from the controls in place by the JSE.
Preference shares to my knowledge can be bought through your broker - I will check with my brokers as to how I can buy pref shares and if it is not through a broker then I will revert on this forum
Title: Re: PSG Konsult
Post by: gcr on June 10, 2014, 09:36:30 am
Supposedly all OTC shares will cease to trade - the JSE has closed down this operation as there are very few regulations governing these transactions and the purchaser does not have the same protection as they could derive from the controls in place by the JSE.
Preference shares to my knowledge can be bought through your broker - I will check with my brokers as to how I can buy pref shares and if it is not through a broker then I will revert on this forum
Have spoken to my broker - if the pref share is quoted on the JSE then one can trade it like any other share and buy into the pref share using their trading platform. He did warn that pref shares you are buying into an income stream and that dividends are based on a % of the prime interest rate. It would make more sense to buy into the companies shares enjoy the capital appreciation and dividends rather into pref shares, unless you only interest is the dividend stream
Title: Re: PSG Konsult
Post by: Snakepit on June 11, 2014, 08:03:41 am
Thanks GCR. Yes I am only interested in them for creating an income stream. I still don't know where to go and look for preference shares. It's an enigma!
Anybody? Newspaper, website, bank?
Title: Re: PSG Konsult
Post by: franz on June 11, 2014, 08:29:07 am
Morning Snakepit, i have listed the number of pref shares you can buy on the JSE

QuickShare Search : Preference Shares

Search Again :     

Name Full Name Code Sector
 NPP1   NAMPAK 6,5%P   NPP1 A221
 RLZP   REUNERT5,5%P   RLZP A221
 SHFINV-P   STEINHOFF INVEST HLD PRF   SHFF A221
 CLOVER-P   CLOVER INDUSTRIES LTD   CLRP A221
 POTP   BRIAN PORTER 5,5%CUMPREF   POTP A221
 DLP1   DORBYL 5,5%P   DLP1 A221
 BARWORLDP   BARWORLD LIMITED   BAWP A221
 AFEP   AECI 5,5%P   AFEP A221
 SBKP   STANBANK 6.5% PREF   SBKP A221
 INVPLC-P   INVESTEC PLC PREF   INPP A221
 SHP2   SHOPRIT 5%P   SHP2 A221
 INPR   INVESTEC LTD PREF   INPR A221
 SHP1   SHOPRIT 6%P   SHP1 A221
 RACP   RECM & CALIBRE LTD PREFS   RACP A221
 LBHP   LIB HOLD 11P   LBHP A221
 SHP4   SHPRT 3RD5%P   SHP4 A221
 SHP3   SHPRT 2ND5%P   SHP3 A221
 MAQP1   MACQUARIESA EL PREF EXX1   MAQP1 A221
 ASTRAPAKP   ASTRAPAK LTD PREF   APKP A221
 BRAITPRF   BRAIT SE Pref   BATP A221
 TFG-P   THE FOSCHINI GRP PREF   TFGP A221
 AFPREFINV   ALEX FORBES PF SHARE INV   AFP A221
 IVT-P   INVICTA HLDGS LTD PREF   IVTP A221
 CULINAN-P   CULLINAN HOLDINGS LIMITED   CULP A221
 RTOP   REX TRUE 6%P   RTOP A221
 NETCARECP   NETWORK HEALTHCARE CP   NTCP A221
 INVLTD-P   INVESTEC BANK LTD PREF   INLP A221
 Nedbank-P   Nedbank Limited   NBKP A221
 FIRSTRNDP   FIRSTRAND LTD B PREF   FSRP A221
 DSYB_P   DISCOVERY HLDGS LTD B PREF   DSBP A221
 ABSA-P   ABSA BANK LTD PREF   ABSP A221
 PSG-P   PSG FINANCIAL SERV PREF   PGFP A221
 IMPERIALP   IMPERIAL HOLDINGS PREF   IPLP A221
 ABIL-P   AFRICAN BANK INVESTMENTS   ABLP A221
 STANBANKP   STANDARD BANK GROUP PREF   SBPP A221
 DLVP   DORBYL 5%P   DLVP A221
 NPKP   NAMPAK 6% P   NPKP A221
 SASFIN-P   SASFIN HOLDINGS LTD PREF   SFNP A221
 CAPITEC-P   CAPITEC BANK HLDGS PREF   CPIP A221
 INVPREFR   INVESTEC PLC PREF (RAND)   INPPR A221
 GRINDRODP   GRINROD LTD   GNDP A221

Title: Re: PSG Konsult
Post by: gcr on June 11, 2014, 03:40:56 pm
Some observations I have on these pref shares - why would one buy them in the first place they all seem to give around 5% to 6.5% which is almost what the CPI is thus you are not going to score in the longer term especially if the CPI turns nasty. I have just extended a Fixed Deposit with a bank at 5.85% for 6 months and I get a tax break on the first R31,000 from SARS. Not sure what the rules are but are pref shares treated as interest income or share dividends - if treated as dividends then you will pay 15% withholding tax on the dividend. To my knowledge the pref share price does not increase to the same extent as the ordinary share price so capital gains could be quite slow paced
Snakepit - not sure what your objective is, but maybe you need to revisit the objective, also if SARS deem these as shares you may well have to hold for 3 years - if so you can get about 8% on a 36 month FD - but with rates likely to go up I wouldn't invest for longer than 6 months at the moment 
Title: Re: PSG Konsult
Post by: Snakepit on June 11, 2014, 08:15:34 pm
GCR, you are right with your comments. I wanted to know more about them as I am investigating the dark side - debt instruments. FRANZ, thanks for that info. Much appreciated.
To get back to your comments GCR, I am also baffled why anybody would buy pref shares and not just go for a fixed deposit. What are we missing???

GCR maybe you can take a look at this video and just maybe you see or hear something I have missed - http://www.justonelap.com/webinarDetail.asp?intWebinarID=100
Registration is free. Download the vid.
Title: Re: PSG Konsult
Post by: gcr on June 11, 2014, 09:25:40 pm
Snakepit - Simon Brown of JustoneLap runs a monthly presentation at the JSE here in Joburg - The Power Hour - he or an expert in their fields talk on a variety of subjects. If I get a chance I will try and collar him and ask him what the benefits are of investing in pref shares versus other instruments - there is a Power Hour tomorrow night at the JSE - if in Joburg attend it is free,but get onto their mailing list as you could crack parking in the JSE and these sessions are normally very well attended
Title: Re: PSG Konsult
Post by: Snakepit on June 12, 2014, 07:59:28 am
Heheh no sorry, can't make it  - Durbanville, Cape Town! :'(
Title: Re: PSG Konsult
Post by: Moonraker on June 12, 2014, 09:41:48 am
Pref. shares are tax free after the dividend withholding tax. When STC was abolished and replaced by the withholding tax, investors thought they would be worse off, but the bank prefs, like NBKP, not wanting to leave investors worse off, increased their payout from 75% of prime to 83.33%

Quote
Amendment to the terms of the non-redeemable non-cumulative non-participating   
preference shares in the issued share capital of Nedbank Limited (`Nedbank     
perpetual preference shares`)                                                   
Holders of Nedbank perpetual preference shares are referred to the             
announcement, released on the Securities Exchange News Service (SENS) of JSE   
Limited on 1 March 2007, setting out the potential effects on the Nedbank       
perpetual preference shares of the then proposed amendments to the tax         
legislation regarding the introduction of a dividend tax on all distributions, 
including dividend distributions, by a company to its shareholders, as         
contemplated in sections 64D to 64N of the Income Tax Act, 58 of 1962, as       
amended (`Income Tax Act`) (`dividend tax`), in the place of STC. Those         
proposals have now been incorporated into the necessary amending legislation,   
which has come into effect and will apply from 1 April 2012.                   
As a result of the amendments to tax legislation, the board of directors of     
Nedbank Limited has resolved, subject to the passing of the required           
resolutions by holders of Nedbank perpetual preference shares and holders of   
Nedbank Group Limited ordinary shares, to amend the rate used to calculate the 
preference dividend payable on the Nedbank perpetual preference shares, from   
the current rate of 75% of the prime rate to 83,33% of the prime rate.         
The amendment will apply to dividend number 19, the dividend declared and paid 
on Nedbank perpetual preference shares on or after 1 April 2012, the date on   
which dividend tax becomes effective.         

With rising interest rates their prices should rise, i.e. it's not a bad time to buy them, but only if you are
looking for tax relief as a high income earner. The after tax yield will always be way better than parking
cash in the money market.
Title: Re: PSG Konsult
Post by: gcr on June 12, 2014, 10:41:02 am
Heheh no sorry, can't make it  - Durbanville, Cape Town! :'(
Will check tonight as to whether they run such a session in CT - I know they do in Durban. Will post results once to hand
Title: Re: PSG Konsult
Post by: gcr on June 12, 2014, 04:02:55 pm
Heheh no sorry, can't make it  - Durbanville, Cape Town! :'(
Will check tonight as to whether they run such a session in CT - I know they do in Durban. Will post results once to hand
Seems like tonight's session may not be The Power Hour, but, Lavan Gopaul dealing with futures, awaiting confirmation from JSE - if it is the latter then I won't attend as attended last year
Title: Re: PSG Konsult
Post by: Snakepit on June 15, 2014, 09:53:22 am
Thanks Moonraker. So the bottom line if I understand it correct, is that compared to putting money into the bank, you will pay less tax. You do get a component of interest earned at your bank tax free, think the amount is round R31000, but once that component is exceeded you will start paying tax at, what 18%, and as you earn more interest you will move into higher tax brackets. But with prefs you will just pay the divi tax.

So the bottom line is that up to that R31000 you can go the bank route but once you exceed that,  prefs are the route to go?

Now a question pops up - that R31000 tax free money, is that per year? In prefs you pay that divi tax from day one. So a good move could be to put your money in the bank for 6 months to get the R31000 tax free and the take it out and buy prefs for the ramaining 6 months and then next year sell the prefs and put ht emoney back in the bank and for the second 6 months put it in prefs again.

You basically swing it to prefs as soon as you hit the R31000 tax free number?
Title: Re: PSG Konsult
Post by: Moonraker on June 15, 2014, 01:27:02 pm
The interest exemption is 23.800-00 (<65) not 31.000-00
So you can have an interest bearing investment(s) of 340.000-00 @7% = 23.800-00 and pay zero tax on the 340.000-00
Taking the NBKP pref. @ currently ± 7% you would pay tax of 3.570-00 (15%).
If you double the invested amount, and assuming a 30% marginal tax rate:-
Interest bearing investment(s) is 680.000-00 @7% = 47.600-00 less 23.800-00 (exempt) = 23800-00 taxable @ marginal rate 30% = 7.140-00 tax
NBKP pref. - 680.000-00 @ ± 7% = 47.600-00 less 15% = 40.460-00. Tax also 7140-00
So the higher your income and marginal tax rate, the larger the benefit in favour of pref. shares.
Pref. shares are best suited for high net worth folks and are for the longer term. Their attractiveness increases in a rising interest rate cycle, when they should outperform bonds. Capital gains (and losses) can be made.

See also Here (http://www.moneyweb.co.za/moneyweb-safm-market-update/preference-shares-chris-gilmour--analyst-absa-asse)