SOUTH32 (S32) Shares
? South32, a global metals and mining company, has its roots firmly in the Southern Hemisphere. The company’s headquarters is situated in Perth, Australia, with regional hubs in Perth and Johannesburg, South Africa. Its marketing head office is based in Singapore. Its offices in London serve customers in Europe, the Middle East and Atlantic regions.
? South32 was spun off from BHP Billiton on May 2015, and trades on the Johannesburg Stock Exchange (JSE), Australian Securities Exchange and the London Stock Exchange. The company is a producer, refiner and marketer of alumina, aluminium, bauxite, manganese, silver, nickel, energy and metallurgical coal, and lead and zinc in Australia, South Africa and South America.
? The company boast a rich history and has an impressive assets portfolio. South32 has also been operational in Australia for over 80 years, in Africa for 78 years and in South America for 25 years. Its stellar reputation as a producer and marketer of commodities, allows the company to minimise costs and maximise returns across the supply chain.
? South32’s fully integrated marketing function enables the company to offer its clientele a differentiated sales proposition compared to other producers.
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VISION & VALUES OF SOUTH32
- The company follows a development strategy of buying into high quality metals and mining concerns with proven track records. The company is focussed on maintaining financial discipline and optimize its portfolio to offer market leading returns for its shareholders, and to ensure steady growth of its share price. These endeavors form the core of the company’s decision-making processes.
- South32’s management comprise directors with decades of experience in corporate governance and finance. Their expertise stimulates growth and development. The company’s first annual report in 2015 showed marginal profits. This is quite a feat in a sector in which the volatility of global commodity prices has severe impacts on production.
- In an effort to negate these challenging trade conditions, the company plans to decrease controllable expenditure by US$350 million per annum and capital expenditure by 9%. These efforts clearly indicate the company’s ability to weather challenges, which fosters investor confidence. Shareholders therefore have the confidence to buy or sell company shares in the expectation of satisfactory dividends and returns.
- Significant investor buy-in has resulted in South32’s assets base being well capitalized. The company’s geographic, technical and commodity diversity shields it from further drops in commodity prices. This enables South32 to drive value for its stakeholders.
- South32 trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “S32”.
MARKET PERFORMANCE OF SOUTH32
- Stringent management practices have enabled South32 to streamline expenditure. Its live online share chart shows that the company’s share price performance has been better than most other stocks in the sector.
- Although the mining sector is regarded as a very risky market to buy into, the company’s strong industry experience and impressive performance in its first listed year still presents it as a very viable option for serious investors.
- Investment analysts advise investors to hold their positions for now while commodity prices are making a turnaround. The development of a more streamlined business model by South32’s management is an effort to negotiate the strong trade winds in the sector.
- There is, nevertheless, still some uncertainty as to the future performance of South32 shares.
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Buy SOUTH32 stocks / shares – ? A Step by Step Guide how to Buy / Purchase SOUTH32 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 SOUTH32 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 SOUTH32 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 $5 stock, multiply 100 by $5 to get $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 SOUTH32 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 SOUTH32 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 SOUTH32 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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