ABOUT TSOGO SUN
📊 Tsogo Sun was first established in 1969 by prominent businessman Sol Kerzner, growing to become one of the leading hospitalities, gaming and entertainment empires on the African continent today.
📊 Prior to 1994, the group’s operations were limited to hotels as gambling in South Africa was heavily restricted. When the new democratic government came to power, gambling was legalised, which enabled the group to add 14 gaming destinations to its portfolio.
📊 The company’s high-value portfolio includes casinos, popular entertainment destinations and hotels, with a wide geographic footprint that spans across South Africa, Mozambique, Nigeria, Zambia, Tanzania, Kenya, the Seychelles and the Middle East. With its market operations divided between the Tsogo Sun Gaming and Tsogo Sun Hotels divisions, the company is prominent across a variety of price points wtih a range of 80 owned or leased budget to luxury hotels, encompassing StayEasy, Holiday Inn, Sun Resorts, the Sandton Sun and the Intercontinental under its Hotels division.
📊 Apart from its hospitality offering, Tsogo’s gaming division rakes in 72% of the company’s revenue with such prominent entertainment destinations as Montecasino, Gold Reef City, Silverstar and Suncoast.
📊 With such an impressive portfolio, the company boasts a historically strong share price on its listing on the Johannesburg Stock Exchange (JSE), where it trades under the stock symbol –TSH with a market cap of over R22 billion.
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VISION & VALUES OF TSOGO SUN
- Tsogo Sun’s financial data has reflected a strong performance amidst slowing economic growth, with an increase in income of 8% to over R 12 billion in 2016 alone, and shareholders enjoying a 10% increase in full year dividends. The group has also worked to enhance its existing portfolio with R 962 billion spent on new hotel purchases as well as the upgrade and expansion of its existing properties.
- Added to this, the group has also focused on diversifying its portfolio and expanding its market presence in the UK and Europe by making the decision to buy a 25% stake of Redefine BDL Hotel Management and the International Hotel Group.
- The group’s strong performance has been bolstered by the growth of its two key hotel and gaming divisions.
- The hotel division has benefited from portfolio diversification with the group also operating on a capital-intensive basis in order to maintain and enhance the quality of its hotels.
- The group’s gaming division has benefited from strategic placement in key urban centers and entertainment hubs, allowing its facilities to remain relevant and responsive to consumer trends.
- Overall, the Tsogo’s strategy of maintaining the relevance of its entertainment centers while preserving positive relationships with its tenants and stakeholders have served to position the group in the market while ensuring sustained growth forecasts. These positive trends are good indicators of the sustained value of the Tsogo Sun share price for those who choose to buy them on the JSE in 2019 and beyond.
MARKET PERFORMANCE OF TSOGO SUN
- Tsogo Sun’s move towards international diversification will serve to mitigate the current downswing in the South African economy, maintaining its performance and allowing it room to capitalize on future growth with the inevitable upswing of the consumer economy.
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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 TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN 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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