📊 Reunert Limited, a South African electrical engineering holding company, was founded in 1888 and has contributed significantly to the country’seconomy over the past 130 years.
📊 Reunert Limited manages an extensive portfolio of business in the fields of electric engineering, information technologies, communication and applied electronics. Apart from its operations in South Africa, the company also operates in Lesotho, Australia, Mauritius, the United States, Sweden, Zambia and Zimbabwe. The company’s headquarters is situated in Woodmead, Johannesburg, in the Gauteng Province of South Africa.
📊 Reunert Limited supports well-known brands such as Nashua, Reutec and CBI-electric. Its staff contingent comprises teams of engineers, research and development experts, field support staff and technicians.
📊 Today, the company employs approximately 6 600 people across its various operations. The company is run according to a decentralised management style which allows its various businesses to make their own operating decisions. The Reunert board, however, determines and monitors long-term strategy, performance, risk and investment decisions.
📊 Reunert Limited’s major shareholders are Allan Gray (Pty) Ltd., Public Investment Corporation Ltd, Old Mutual Investment Group (SA) (Pty) Ltd., and Coronation Fund Managers.
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VISION & VALUES OF REUNERT
- Reunert share prices have been put under severe pressure by the challenging macro-economic conditions in South Africa. The difficult trade conditions in the industrial sector have tested the company’s resolve. The company negotiated these challenges head-on, as is evident from its 2015 financial performance when it increased its operating profit from R1 billion to R1.1 billion. Due to its strong brands, quality value offerings and diversified customer base the company has managed to weather the storms.
- CBI-electric increased its operating profit by 21% to R520 million over the same period, as did Nahua. The latter grew operating profit by 17% to R533 million. It made significant improvements in its voice business units, online offerings, supply chain evaluation and savings in distribution and general overhead costs. Reunert Limited increased its operating profit by 6% to R181 million, but continued growth is expected to be boosted by large contracts which will take several years to conclude. One of these is a major long-term contract with the South African National Defence Force to provide live tactical communication and associated products.
- The company continued its satisfactory performance in the first six months of 2016, by increasing operating profit by 12% over the previous fiscal cycle, to R503 million. Improved efficiencies, stringent cost management practices and positive impacts from imports, as well as capital investments in operations, enabled the company to continue on this positive growth path. Even though the economic climate remains depressed, the company continues to focus on these core areas going forward. These strategies boost investor confidence.
MARKET PERFORMANCE OF REUNERT
- Challenging trading conditions over the past few years have impacted negatively on investor confidence. Reunert share price has been unstable and significantly below the R 85 it achieved in 2013.
- Although the company’s performance has been relatively solid, it still has a way to go to restore investor confidence. Analysts advise shareholders who buy or sell shares to hold their positions for now.
- Prospective investors will in all likelihood opt to buy other stocks in light of the uncertain forecast for the company.
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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 REUNERT 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 REUNERT 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 REUNERT 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 REUNERT 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 REUNERT 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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