ABOUT THE SPAR GROUP
📊 The SPAR Group was first founded in South Africa in 1963 as a wholesaler, which serviced 500 small retailers. Since that time, the group has grown to become a leading distributor of goods and services today, supplying and servicing approximately 2000 independently-owned Spar stores in South Africa and on the sub-Saharan continent. The group distributes its products from seven distribution centres.
📊 The first SPAR store opened in the Netherlands in 1932. It was originally launched as DESPAR, an acronym of a slogan created by its founder to describe the organization.
📊 In the years that followed, the group’s founder recognized that the SPAR concept had international relevance in offering an alternative to multiple retailers. SPAR International was established in Amsterdam in 1953 to support and develop the SPAR concept internationally and Adriaan van Well became the first President of the International SPAR Board.
📊 The SPAR Group came to South Africa in 1963 as a wholesaler, which serviced 500 small retailers. Since that time, the group has grown to become a leading distributor of goods and services today, supplying and servicing approximately 2000 independently-owned SPAR stores in South Africa and on the sub-Saharan continent. The group distributes its products from seven distribution centres.
📊 The group has a varied high-value portfolio that includes Build It stores located across Southern Africa, TOPS @SPAR liquor stores and Pharmacy@SPAR stores. The company has also moved to enhance its portfolio and internationalize its operations with the decision to buy BWG in Ireland which carries over 1300 SPAR, MACE, XL and Londis stores. Added to this, the group’s acquisition of a majority stake in SPAR Switzerland ramped up its portfolio to over 4000 stores.
📊 With such a strong portfolio, SPAR shares have maintained a strong performance on the Johannesburg Stock Exchange (JSE), where it currently trades under the stock symbol –SPP with a market cap of over R36 billion.
You might also like: FOSCHINI GROUP SHARES
VISION & VALUES OF THE SPAR GROUP
- Spar’s financial data has reflected a strong performance despite a sluggish consumer economy, with a revenue increase of 23.8% to R90.6 billion and operating profit growing by 12% to R2.5 billion for 2016 alone. Added to this, the company’s net asset value increased by 63%.
- The company’s various divisions have also reported an impressive performance, with TOPs raking in a revenue increase of 12% in 2016, Build It revenue increasing by 11.5% and international revenue from Ireland recording growth of 36.8%. Added to this, the group’s Swiss acquisition brought R5.8 billion worth of turnover after its first year. SPAR Group still draws largely from its South African market, which brings in 77% of the company’s overall turnover.
- Much of the group’s success is pillared on its business model, which functions on the basis of a voluntary trading agreement with its independent retailers, allowing stores to adapt their supplies to their particular LSM targets while still enjoying the backing of SPAR’s trading power.
- The group’s strong performance has served to boost its share price, its deep market penetration providing strong returns and yielding good dividends for investors who choose to purchase shares on the JSE.
MARKET PERFORMANCE OF THE SPAR GROUP
- The live online stock charts show that the SPAR Group share price makes it a strong buy, a historically blue-chip share as a market leader and one of the top performers in its sector.
- As the company works to ramp up its expansion into both Southern African and European markets, business forecasts indicate that its enhanced portfolio and balanced asset base make it a valuable buy in 2019 and beyond.
You might also like: BIDVEST SHARES
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 SPAR GROUP 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 SPAR GROUP 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 SPAR GROUP 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 SPAR GROUP 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 SPAR GROUP 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?
Read more about : TELKOM SHARES