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Offshore equities likely to disappoint – expert

Read the whole article of course.

A reference to listed property ..

“So if you as an asset manager want to protect your investor against South African inflation, we would advocate significantly higher exposure to South African equities and significantly higher exposure to South African listed property,” he said.

He forecast that some of the second-tier listed property funds were likely to be the target of consolidation this year.

I partially agree, considering how hard European and US markets have run, and with the medium term
possibility of a slight strengthening of the Rand. Long term of course there is no chance of a much stronger Rand. (Just think 10, 20, 30 years back).

This is the statement that brings me back to my original question:
"the distributions made out to the shareholders are not actually dividends, but are income distributions"

Hello, have you read my reply #2 (the link) ?
South African resident investors in a REIT pay normal income tax on income they receive from the REIT and capital gains tax when they dispose of their interests in the REIT. As before, even though they may be called dividends.
But if you invest in an off-shore REIT like RPL it will be regarded as a foreign dividend in ZA subject to 15% withholding tax.
(yossarian was not correct stating tax of 7350 on earnings of 49000 as he/she assumed it would be subject to 15% withholding tax).

I don't intend investing in either of these stocks, for better or for worse. Merely curious about the über-hype, especially
as regards COH.
COH would need to double their upper range 14c earnings forecast every 4 years to get the PE down to acceptable levels
at todays share price.
Not for the faint hearted.

Curro Holdings Limited - Trading Statement

Release Date: 20/01/2014 12:10:00      Code(s): COH        Trading Statement

Curro Holdings Limited
Incorporated in the Republic of South Africa
(Registration number: 1998/025801/06)
JSE Share Code: COH
ISIN: ZAE000156253
(“Curro” or “the Company”)

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited, a listed company
is required to publish a trading statement as soon as it becomes aware
that the financial results for the financial period to be reported on next
will vary by 20% or more from those of the previous comparable period.

Shareholders are hereby advised that a reasonable degree of certainty
exists that the Company will report an increase in headline earnings of
between 80% and 100% and an increase in earnings per share of between 77%
and 97% for the year ended 31 December 2013.
This means that the Company will report an attributable and headline
earnings per share of between 12.6 cents and 14.0 cents for the year ended
31 December 2013, as opposed to the attributable and headline earnings per
share of 7.1 cents and 7.0 cents published in the previous corresponding
period.

Curro ended the 2013 year with 26 campuses accommodating approximately
22 000 learners. It is anticipated that for the 2014 year, Curro will have
at least 32 campuses with approximately 27 000 learners.

The financial information on which this trading statement is based has not
been reviewed and reported on by Curro’s auditor. The financial results
for the year ended 31 December 2013 are expected to be published on or
about 18 February 2014.

By order of the Board

Durbanville
20 January 2014

I see, but do we get Karma for not posting on Sundays ?

PSG’s Curro is the most popular stock pick]

JOHANNESBURG – Private schooling company Curro has emerged as the most popular stock pick for 2014. Each year Moneyweb runs an informal stock picking competition. At the beginning of the year, community members choose one JSE-listed company. The best performer for the year wins.

Blah, missed the boat, there's still ADH, but I am sceptical.

A fair number of analysts are now picking ADH for 2014, and the stock has jumped by about 12% since beginning Jan.2014.
It was sleeping for most of 2013, while COH retuned 70% in 2013, ADH returned 9.9% incl. dividends.
Curro of course seems grossly overvalued with a PE of over 200, and I personally would not want to buy at those levels.
ADH is currently on a PE of 20.
Is anybody invested in ADH, and if so what are your thoughts ?

One thing that baffles me, all those fancy new school buildings, especially with COH, but where do they get the teachers ?
Last I heard nobody is keen to be a teacher in ZA, quite understandable really. School buildings with all the latset equipment
mean nothing if the teachers are not up to it.

For the first quarter (ending 31 December 2013) of the 2014 financial year, assets under management total R522 billion.

(Slowing down somewhat - R492 billion in previous ¼)