SAPPI (SAP) Shares
📊 Sappi Limited, a South African paper and wood products manufacturer, boasts a rich history stretching back to 1936. The company produces and markets commodity paper products, pulp, chemical cellulose, and forest and wood products for Southern Africa and export markets.
📊 Sappi Limited operates commercial timber plantations comprising approximately 500 00 hectares. These plantations provide sawn timber for the construction and furniture manufacturing industries.
📊 The company operates four mills in South Africa, seven in Western Europe and three in the United States. Collectively, these mills produce about 5.3 million tonnes of paper, 2.5 million tonnes of paper pulp, and 1.3 million tonnes of dissolving wood pulp. The company sells and distributes its products in more than 150 countries worldwide.
📊 Sappi Limited trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “SAP”. The company enjoys a market capitalization of more than R41 billion. It is therefore little wonder that Sappi shares have been among the blue-chip stocks to buy recently, as shares have considerably been outperforming the market.
📊 Sappi Limited’s major shareholders include Allan Gray, Public Investment Corporation, Prudential Portfolio Advisors, Coronation Fund Managers, Investec Asset Management and Dimensional Fund Advisors.
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VISION & VALUES OF SAPPI
- The company’s excellent performance over the past few years has been enabled through its 2020 Vision, which comprises of a number of medium-term targets to substantially increase earnings. An integral part of this strategy is to expand and diversify its global product portfolio in an effort to continue to grow into a cash-generative and diversified woodfibre company.
- The company has also been streamlining its capital expenditure by rationalizing declining business, expanding through moderate investments and accelerating growth in related businesses. It spent capital on lowering the cost base at key mills and reducing debt. This strategy was effectively executed, as reflected in the company’s data for the 2015 fiscal year. During this cycle the company’s net profit increased by 24% to US$164 million.
- The weak rand/dollar exchange rate benefited the company’s South African operations by boosting strong sales demand and averaging net sales prices. Management made a strategic move by buying into energy efficiency and its specialized cellulose business which, today, is still biggest contributor to the company’s profit. Sappi sold its waste-paper packaging Enstra and Cape Kraft Mills in a strategic effort to focus on its virgin fibre packaging business in South Africa.
- Major currency movement in Europa, however, had a negative impact on the company’s European business performance. The once-off cost impact of major capital projects in Europe and the U.S. also led to a decline in profits, but this situation should improve in the foreseeable future. The company also sold off various businesses in this region to support its 2020 Vision objectives.
- These strategic business moves maintains investor confidence, as it is clear that company management are able to negotiate changing market conditions and challenges in order to sustain growth and increase value for investors. Shareholders can therefore buy or sell company shares in the expectation of sound dividends and returns.
MARKET PERFORMANCE OF SAPPI
- Sappi Limited’s performance on the JSE has been exceptional since its listing. The company adjust well to challenging and constantly-changing market conditions. This was clearly demonstrated in 2016 when the Sappi share price showed a sharp increase from R41 at the beginning of the year to R77 by October.
- Analysts forecast continues upside growth for the foreseeable future, which bodes well for investors who plan to purchase Sappi shares, as the company’s steady performance inspires confidence.
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Buy SAPPI stocks / shares – 📈 A Step by Step Guide how to Buy / Purchase SAPPI 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 SAPPI 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 SAPPI 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 SAPPI 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 SAPPI 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 SAPPI 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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