Share Forum - Discuss JSE shares and join the Investor Challenge

Who was the Paul in the video?
I am down 30% in Mediclinic but see no reason to sell. 

Paul Theron from Vestact. http://www.vestact.co.za/

+15.6% since closing price day before the election. Pull back was expected - good. No brainer while TRUMP is pres.
See BIL attachment.

EDIT: How analysts got it wrong or partially wrong. This from Overberg Asset Management - Weekly Report 8th Nov. 2016.

8 November 2016

According to sensitivity analysis, the S&P 500 index would jump by 2-3% in the event of a Clinton victory and drop by 11-13% in the event of a Trump victory. A Trump victory, due to promises of substantial infrastructure spending and the effect this would have on the State Budget, would cause Treasury yields to spike higher.(Correct) A Trump victory would boost the gold price and safe haven currencies such as the Swiss franc and Japanese yen.(Nope. Yen= weaker, gold down, CHF little change.Nobody knows what will transpire going forward)

Following the negative initial reaction, the rand would respond positively to Trump’s policy of substantial infrastructure spending. Infrastructure spending would have positive repercussions for mineral resource prices, benefitting commodity dependent currencies such as the rand, Australian dollar and Brazilian real. (Will have to watch out for this when contemplating purchase of resource stocks)

Yes. Patrick, your answer is here. http://www.bloomberg.com/news/articles/2016-11-09/pimco-joins-bond-traders-seeing-fast-tracked-fed-after-trump-win

EDIT: which of course results in a stronger $ on the crosses.

Since I have bought Mediclinic in June 2014 one thing has become very clear to me.
You can't foresee the extent of government intervention in the shape of the Health Authorities
imposing co-payments on patients using private healthcare facilities (The Thiqa plan UAE).

In addition Switzerland will go the same way...
"The canton of Zurich is considering cost saving measures which may have an
impact on Klinik Hirslanden. The proposal in its current form (known as the VVG
levy) is to impose a tax on the proportion of privately insured patients treated
in listed hospitals."

With EPS down sharply and a poor outlook is there any reason to continue holding?
Why should things improve in 2 or 3 years - you can't take on government and win?

Spiralling down today after results. 

I don't get why resources are up today. Not gold, resource counters like BHP, ANG, etc. Trump's protectionist policies, plans to impose heavy tariffs on China etc. will all tend to crimp world trade and therefore growth, which means less mineral exports from ZA. The weaker Rand does not seem to be the main reason, as all the resource counters listed in the UK are also up substantially (£/$) practically no change from yesterday. Coal I can understand as Trump wants to move away from renewables in favour of coal, but that's about all I can think of as a reason.

Monica Lewi Eh, Hillary Clinton 

Patrick, I don't know, as Z. usually has the right to appoint. Maybe not in this case. See below. (From Daily Maverick - Pierre de Vos)

Usually the president has the discretion under section 84(2)(f) of the Constitution to appoint commissions of inquiry. The remedial action now fetters this discretion. The question a court will have to answer is whether the special circumstances of this case render this fettering of the president’s constitutional powers constitutionally valid or not. Is it permissible – in these extraordinary circumstances in which the president is being implicated in breaches of the Ethics Act and in possible corruption – for the Public Protector to restrict the constitutional powers of the President?

The problem faced in this case is that there are excellent reasons why the president should not have the discretion to appoint a judge of his choice to head a commission of inquiry to investigate matters delineated by the president. The president is conflicted as he is implicated in wrongdoing which would have to be investigated by the commission of inquiry. It is inevitable that if his discretion is not fettered he would appoint a judge he perceived to be sympathetic to him. This conflict of interest would almost certainly invalidate the entire commission.

Given the court ruling today that the UK government must hold a vote in parliament before starting the 2 year countdown to Brexit, it could open the possibility that Brexit will not happen. We will need to wait for the Supreme Court appeal that has been granted to the government to take place between December 5th-8th.

‘Were the government to be overruled in its appeal, there is a real prospect that Brexit can be overturned. Losing the legal challenge leaves Britain with the prospect of its own government voting against the will of the people. This will not sit well with the majority of the British public who voted for Britain to leave the EU.

‘The only result of this decision being confirmed can be a general election whereby the British public can be given another opportunity to exercise their democratic rights.’

£ has shot up today as a result with stocks like Brait, Redefine International et al showing good gains. Let's see what transpires.

Brexit ruling will not derail article 50 timetable, says No 10