CAPEVIN (CVH) Shares
Capevin Holdings is a South Africa-based passive investment holding company whose major asset lies in alcohol producer and marketer, Distell, which it holds with a 50% interest in Remgro-Capevin Investments. Capevin’s Distell asset consists of an indirect effective interest of 27% in that company, with a market cap of R7.66 billion.
Capevin Holdings has traded under the Beverages sector of the Johannesburg Stock Exchange (JSE) since 2012 with a market cap of over R14 billion, where investors can purchase shares under the stock symbol -CVH. Due to the nature of its solitary investment model, the strength of the company’s share price is mainly determined by the performance of Distell, which is Africa’s largest producer and marketer of wines, spirits, ciders and other alcoholic beverages.
The Distell Group was created in 2000 through the merger of the Stellenbosch Farmer’s Winery and the Distiller’s Corporation, which was founded by South African businessman Anton Rupert. Today Distell has a wide portfolio that includes brands like Amarula, Savanna, Hunter’s Dry, Durbanville Hills and Nederburg. The company enjoys successful market penetration owing to its broad pricing strategy, with products available to a wide range of customers across the price spectrum. As such, the company employs approximately 5 500 people with an annual turnover of R21.5 billion.
The group has also garnered positive brand association through its corporate responsibility initiatives: in its efforts to promote responsible drinking the group has aligned with the South African government’s Anti-Substance Abuse programme of Action, 2011-2016, with a focus on responsible advertising; added to this, the group has also founded the Distell Foundation, with investments in more than 60 community outreach projects which seek to align with the United Nations’ Millenium Goals.
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- Capevin Holdings shows a history of providing investors with strong yields from the dividends paid to it by Distell, and data from the live online stocks chart predicts a steady growth forecast for Capevin’s share price.
- South Africa remains Distell’s largest market, where it experienced growth of 13.3% in 2015 alone. The company recorded revenue increases of 11.2% to R12 billion, sales volumes by 7.7% and headline earnings by 17.8%. Steady growth was also achieved in the company’s international markets thanks to the weaker rand.
- As a result, Capevin’s latest financial data reflects this strong performance, with its major investment in Distell yielding after-tax returns of over R300 million for the last financial period of 2015, when shareholders consequently received a 17.9% increase on headline earnings per share.
- Added to this, the Distell group has stated its target of doubling the size of its business by 2022, which it aims to achieve through enhanced market penetration, product diversification and improvements to its customer service. All this factor a positive growth forecast for Distell, and in turn, for Capevin’s share price.
CAPEVIN INVESTOR TIPS
- Due to Distell’s wide portfolio, broad pricing strategy and strong financial position, the company is able to take advantage of improvements in the market to bolster its growth and market penetration.
- Capevin shares have continued to reflect this strong performance by Distell over the last five years, so that investors who buy shares in Capevin may look forward to a safe purchase in 2019 that will yield strong long-term returns.
- This may also fall in line with the mitigated risk environment of passive investing, which gradually grows value through a buy-and-hold strategy, with the beverages market posting positive returns over time.
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Buy CAPEVIN stocks / shares – A Step by Step Guide how to Buy / Purchase CAPEVIN 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 CAPEVIN 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 CAPEVIN 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 CAPEVIN 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 CAPEVIN 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 CAPEVIN 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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