Trading Ideas Uncategorised

The Tiger cannot change its stripes

The Tiger cannot change its stripes by SchalkLouw on


After a few years which Tiger Brands would surely like to forget, it seems like the both the company results and share price, have found quite a strong support. Fundamentally the company is sound, with both PE’s and Price/Books trading at 5-year lows. After recent results, it seems like the growth (ROE) in the company has also made a turn for the better (above 8% again). Debt levels are also still extremely low. The lingering listeriosis Class Action lawsuit could be a risk, but Tiger Brands informed shareholders that it intends to defend the Class Action.

Technically the company look very interesting. Price is trading above the flattening 50-day moving average, with main resistance level currently laying at top of the diagonal resistance line (at R217). A break and close above R217, brings September 2019 levels of R227.50 into play, with the 200-day moving average at R242.20 being next resistance level . These levels coincide very nicely with our target price (fundamentally) of R250 on the company. Download and read our full report” CLICK HERE

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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