How to identify companies that can grow

Dear Readers
Welcome to the Spring edition of MarketViews!
First off, I must apologise for an error in last month’s issue. The email address listed as part of our ‘New! Ask our Expert’ launch was not receiving emails correctly. This problem has been rectified and you will now once again be able to direct your investment questions to editor@sharenet.co.za and we will forward them to our panel of experts.
This month we have four great articles that we hope will be useful to you:
HSBC-Nedbank PART II - Charles Wilson continues his analysis of the HSBC-Nedbank takeover, looking at the potential for regulatory approval, the likely price and structure of the deal, and what HSBC might do with Nedbank.
How to identify companies that can grow - Nicholas van der Meer examines the long-term drivers of revenue growth, and explains how to use pricing power and demand inelasticity to identify solid companies to invest in.
Can You Profit from IPOs? - AJ Cilliers discusses the process of an Initial Public Offering (IPO), and looks at the possible investment options this may present.
PoliticalViews - Ryland Fisher comments on the recent public sector strike, and mulls over the possible rupture it is causing to the tri-partite alliance of the ANC, Cosatu and the SACP.
Special offer for Sharenet subscribers
Annabel Koffman of Fleet Street Publications is offering readers a complimentary copy of their special report Buying gold for financial profit and protection. You only pay R50 for postage and packaging.
There are only 346 copies available, so click here to find out more and order yours today!
This month’s voting question: This poll is sponsored by SharenetCFDs - Supecharge your trading
What do you want most from online trading?
(a) Unlimited live prices
(b) Market depth
(c) Advanced charting facilities
(d) Low commissions
Last month’s poll results:
Should HSBC or SChartered obtain Old Mutual’s controlling stake in Nedbank?
Yes, both companies would be better than Old Mutual..33%
Yes, either company is a good fit for Nedbank..31%
No, a foreign takeover would increase risk..20%
No, neither bank has sufficient experience in Africa..16%
Warm wishes for sound investing in September,
Natalie Wassung
Editor
| Name | Time | Price | Move | |
| JSE Overall | 17:00 | 27942.89 | 0.37% | |
| Gold | 20:22 | 1248.90 | -0.18% | |
| Platinum | 20:22 | 1554.00 | 0.71% | |
| Brent Crude | 20:06 | 75.41 | -0.85% | |
| USD/ZAR | 20:22 | 7.18 | -0.71% | |
| GBP/ZAR | 20:20 | 11.07 | -0.36% | |
The old style trading floors where trading in shares between buyer and seller happened in what was known as an open outcry format, has for the most part around the world been replaced by electronic order books operated by the exchanges themselves.
Most investors have heard about London Stock Exchange and the Deutchse Bourse, but most would not heard about Chi-X and BATS, which are known as alternative trading systems (ATS).
Alternative Trading Systems are non exchange trading venues, but approved by the regulators, where buyers and sellers can execute trades in existing financial instruments such as shares, bonds, and futures.
Chi-X Europe was created as a response to the EU’s Markets in Financial Instruments Directive (MiFID), which aimed to increase competition and drive down the cost of trading in Europe.
Technology allowed the creation of this trading operation in March 2007, which initially started trading just ten stocks. Now this operation traded almost 500 billion euros in the second quarter of this year and is steadily increasing market share.
BATS Global Markets operates the third largest US equity market. The name stands for Better Alternative Trading System. Started as a private company in Kansas, it is owned by a...

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| What do you want most from online trading? |
The public sector strikes have come at a huge cost to the economy, but the biggest cost might be in terms of the rupture that has formed between the tri-partite alliance of the ANC, Cosatu and the SACP.
Fleet Street Publications is offering MarketViews' readers a complimentary copy of their special report "Buying gold for financial profit and protection". Read more by clicking the article.