Last week, we promised you new stock highlights.

And we’re delivering 3 worth looking into – well, 5 if you count the extra options.

Plus some new wealth-building insights just for you.

Let’s go…

Shining some light on 🔦 

• So hot right now: 3 New investments we’re eyeing.

• Grocery crypto, losing 400k subs & inside buys.

• Stock update: Higgo’s Top 10 stock picks for 2024.

• Wealth hackers: 3 Fast ways to boost your income.

• The results: This is how you prefer to invest.

• The update: Events and video content.

THE SPOTLIGHT

3 New Investments that We’re Eyeing

A risky Chinese performer. 

Your any-day-now crypto play. 

And opportunities off the back of election optimism… 

Yes, there’s quite a bit to get excited about on the investment front. So much so that we decided to highlight some new stock picks and opportunities to consider for your portfolio.

1. PPD looks set to keep dominating

Fair warning: This is a high-risk play, but we wouldn't be doing our job if we didn’t tell you about the opportunity we see in PPD Holdings Inc. (formerly Pinduoduo), the parent company of Temu, primarily listed on NASDAQ.

No doubt you’ve seen Temu’s ads on social, and maybe you’ve even tried the service – in which case you probably already know why their customer-focused model has been so successful. 

But PDD itself is a multinational commerce group with a portfolio of businesses, and on the whole, their growth has just been phenomenal – a 132.27% revenue increase YoY in the latest quarter. And we expect them to keep growing in the coming quarter and possibly a few quarters beyond that.

The main reason for looking at it now is how undervalued it is when comparing it to its growth – PPD’s PE ratio (price-to-earnings) is at 19.70, making it very attractive.

That being said risks are deterring some investors

• Sentiment-wise, people are slow to trust Chinese companies

• Which means you’re not 100% sure about the accuracy of their financials

• There are questions about their business model – so cheap yet profitable?

• And some claim the company leadership has communist ties.

Importantly, South Africa has levied a 39% increased import tax on clothing items from 1 July onwards, in a bid to protect local businesses. And there’s every chance other regions could do the same, which will impact the likes of Temu.

All in all, it’s attractive enough for Higgo to take a small bet on – knowing the risk involved – especially since he finds emerging markets so exciting right now.

2. Ethereum’s ETF could have dramatic effects

The crypto play to look out for is Ethereum, which is launching an ETF product that saw its first round of approvals in May but requires a final approval (called S-1) before it can launch.

The reason to anticipate good things is history and human emotions: When Bitcoin ETF launched in January this year, there was first a huge price jump from the 40k range to 70k (see about the EFT-related Bitcoin surge), where it is currently around $64k at the time of writing.

The crypto cycle’s almost always been: When there’s a massive BTC uptick, Ethereum follows shortly after, followed by the altcoins a little later.

And Higgo’s positive that if the Ethereum demand is just 10% of Bitcoin’s, we could see a significant price increase – with reports saying the ETF approval could come through by 2 July. But this is also a high-risk play, so do your research.

3. SA Inc. looks set for a comeback

South African stocks overall are undervalued at the moment, but there’s reason to believe that the recent election results could drive new interest and attract foreign investment. We’ve already seen SA Inc shares increase quite a bit in the past few trading days. 

With the news of the Government of National Unity in the political space, we as a team are excited about the optimism and potential of renewed trust and hope in South Africa – there’s much that still needs to happen, but we are optimistic about the future of our country.

Stocks to watch:

• Shoprite is priced high compared to peers but is currently the strongest retailer, so a solid long-term bet with a management team that is innovating and executing like there is no tomorrow.

• Woolworths is trading at quite an attractive valuation if you believe in a recovery in the South African economy (PE in the 13 range with a dividend yield of over 5%).

• JSE Financial 15 where an improved economy will boost banks’ performance.

This is not financial advice, you are responsible for your own research.

HAVE YOUR SAY

Manage Your Money Better

Things have gotten pricey over the last two years in South Africa. 

With inflation of 6.9% and 6% in ‘22 and ‘23 respectively, and interest rates kept at the highest rate in 14 years, consumers are feeling the pinch. 

In fact, the South African middle class is facing increased pressure with debt servicing levels at 79% of their income, up 28% from two years ago. 

It's never been more important to budget well. That’s why we recommend FinWise.

FinWise connects securely to your bank account, to track your income and expenses and then it helps you:

• Budget and keep tabs on your spending (per category).

• Track and compare your spending to previous months.

• Track all your investments and your net worth.

• Plan and forecast your future finances to see if you’ll have enough.

• Get tips, insights and nudges to manage your money better.

Use FinWise to simplify the way you work with and think about your personal finances. Save money, get peace of mind, and be in full control of your finances.

Start your FinWise journey for free today — Sign up here.

STOCKS AND ALL

🍞 Crypto Baskets: A year after launching Bitcoin payments, Pick n Pay says it’s seeing R1m per month in crypto sales volume. Most transactions are for around R500 and range, from grocery purchases to data and municipal bill payments – mainly in the Western Cape, Gauteng and KZN. 

📺 TV Wars: Despite reporting positive growth for many of its auxiliary ventures, MultiChoice reported losses in its core DStv business, most notably losing 5% of its circa 8 million customers – a loss of a whopping 400k subscribers.

😎 Insider Secrets: HCI Group (Hosken Consolidated Investments)’s CEO has purchased yet another R20 million worth of their own shares (following an earlier R200 million purchase), which could indicate extreme confidence in the company’s financial future.

WEALTH HACKER’S KIT

The Fast Ways to Increase Your Income

3 Side hustles that are easy to start and can help you earn from day one

You’ll remember last week we said the keys to building wealth are 1) Earning, 2) Managing your money, 3) Putting it to work for you and 4) Protecting your wealth.

Well, taking a closer look at No. 1, we asked how you can bolster your current income. Especially if you’re already employed, options for starting a business are limited because of the time investment it would take.

That’s why we decided to focus on side hustles: Slightly lower-effort ventures you can start relatively fast and build in your spare time.

Particularly, we looked at ideas for side hustles that are easy to set up and can start giving you income from the outset.

1. Start a consulting gig

If you’re working, you probably have a specific skill set or knowledge that many otters could benefit from. As an accountant, for example, or project manager etc. there are probably quite a few businesses in your immediate neighbourhood that could use your insights.

Consulting means offering it to them. You approach businesses or people that need whatever expertise you have and offer to consult with them for a fee.

You don’t even need to set up websites and stuff to start, simply jump on WhatsApp and start contacting people you know saying: “Hey, I’m offering X advice, know anyone who needs help?”

2. Offer it as a service

OK, so maybe your knowledge isn’t in demand because you work with your hands or deliver a service – like an electrician or a writer. You might not be able to just consult but you can sell your expertise as a service.

Similarly to consulting, start by activating your network before putting up a website. Just start spreading the word: “Hey, I’m helping people do X, Y and Z, know anyone who needs it?” and get going fast.

3. Build a following

Slightly harder to do, and with a longer time to see results, one very fast-growing segment is the creator economy.

Perhaps it’s because of the fragmented nature of the internet, but a lot of people seem to crave real connections online. That’s why there’s a big shift from faceless influencers with millions of followers to everyday thought leaders with small, highly focused followings.

If you’re a content creator or are very passionate about a subject, going online and putting your content out there is a way to start building a loyal core following.

Not to try and earn advertising revenue from – that takes millions upon millions of views – but rather a smaller following (a few hundred or thousand) of truly interested people that you could help do/achieve something in their own life.

How this works is:

• You put content on platforms for free to attract people

• Offer them to come into your inner circle – create an exclusive community or database etc.

• And then charge them for membership to that community/service.

THE PEOPLE HAVE SPOKEN

How do you like to invest?

🟨🟨🟨⬜️⬜️⬜️ 📊 Traditional investment vehicles only PLS (25%)

⬜️⬜️⬜️⬜️⬜️⬜️ 😎 I only invest in crypto, bro (3%)

🟩🟩🟩🟩🟩🟩 💸 A bit of both – I like to spread the risk (55%)

⬜️⬜️⬜️⬜️⬜️⬜️ 🚀 I mainly invest in my business/startup (3%)

🟨⬜️⬜️⬜️⬜️⬜️ 🙄 New to investing and honestly a little bit confused (14%)

What you said…

Hey, love that progression, Asethemane!

We hope our info helps, be sure to reach out directly if you need a personal touch, Sydney 😊

These are certainly interesting times, Lespur, but we’re genuinely optimistic for local markets with what’s happening in the wider SA space.

Good approach, Nyazi, platforms like them really help you enter and try things with a little more confidence.

Awesome, K! Stick with us as we try to unpack it for you – and reach out if you have any specific questions.

Coming up next week: What are you going to do with your payday for July?

Some interesting wealth-building options coming your way on Wednesday 26 June.