ASSORE (ASR) Shares
Assore Limited, a South African mining holding company, was incorporated in 1950 and has its headquarters in Johannesburg, Gauteng, in South Africa.Assore Limited is primarily involved in ventures involving base minerals and metals. The company markets all products produced by its subsidiaries and Assmang, through its subsidiary, Ore & Metal Company. Most of these products are exported, with the remainder being used in beneficiation process or being sold locally.
Assore Limited has a 50% stake in Assmang, which it controls together with African Rainbow Minerals. Assmang is involved in the mining of iron, chrome and manganese, and the production of manganese alloys. The company also mines Wonderstone, a pyrophyllite substance, a portion of which is used to manufacture high-precision components and durable tiles for filtration, mining and industrial applications.
In compliance to Mineral and Petroleum Resources Development Act, 26,07% of Assore’sshares are controlled by two broad-based black economic empowerment community trusts: the Boleng Trust (14.28%) and the Fricker Road Trust (11.79%). This Act required that, by May 1, 2014, 26% of mining companies’ shares be controlled by historically disadvantaged South Africans.
? Assore Limited has a market capitalization of more than R26 billion. The company’s shareprices and headline earnings have, however, declined exponentially recently due to oversupply in the commodity markets in which the company trades. The company trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “ASR”.
Assore Limited’s major shareholders are Oresteel Investments (Pty) Ltd, Main Street 904 (Pty) Ltd, and Main Street 460 (Pty) Ltd.
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ASSORE SHARES GROWTH DRIVER
- Assore Limited’s board warned investors at the end of 2014 that the company’s strong history of increased earnings would not continue because of considerable weakening in global oil prices. Increased competition from the Chinese market and iron and manganese prices which continued to drop, have resulted in a decrease in earnings.
- Although demand is expected to remain subdued for the foreseeable future, and headline earnings are anticipated to decline further, Assore Limited relies on its ability to produce about half of its mined iron ore in lumpy grades. This attracts premiums and capitalizes on the increasing trend for steel mills to use lumpy grades in production processes.
- Demand has also been negatively affected by slower economic growth in North America, Europe and Asia, resulting in significant price decreases in the company’s products. The increase in operating costs in the mining sector, because of electricity and labour price increases that exceed inflation, has also negatively impacted on earnings. These factures has forced Assore Limited to restructure its operations in order to remain competitive and add value for its shareholders. Currency fluctuations have also impacted negatively on company stocks.
- Due to the fact that manganese prices are slightly more stable than that of iron ore, Assore Limited has invested significant capital into its manganese production. This clearly demonstrates the company’s ability to negate challenging marketing conditions, which boosts investor confidence.
ASSORE INVESTOR TIPS
- Assore Limited’s disciplined approach to capital expenditure and conservations, has prevented a devastating fall in shareprices, and has enabled the company to still pay out dividends, despite very difficult trade conditions. Sound management practices and restructuring maintains investor confidence, however.
- Concern persists over the sustainability of the South African steel industry, as steel and iron-ore prices are expected to decline even further in the coming years. Markets in which the company operates are likely to remain volatile, making it exceptionally difficult for analysts to predict shareprices and earnings. Assore Limited shares are therefore considered a risky buy.
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Buy ASSORE stocks / shares – A Step by Step Guide how to Buy / Purchase ASSORE Stocks or Shares online.
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy ASSORE Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN ASSORE STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE ASSORE STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of ASSORE stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy ASSORE stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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