A value–based investment selection framework for platinum shares on the JSE (Ltd) / Olivier, A.M.

Boloka/Manakin Repository

Show simple item record

dc.contributor.author Olivier, Anna Maryna en_US
dc.date.accessioned 2012-08-27T15:11:09Z
dc.date.available 2012-08-27T15:11:09Z
dc.date.issued 2011 en_US
dc.identifier.uri http://hdl.handle.net/10394/7039
dc.description Thesis (MBA)--North-West University, Potchefstroom Campus, 2012.
dc.description.abstract Fundamentally at the root of financing is the core principle that investors expect compensation for the risk taken, since investing in equity embodies an opportunity cost. The Platinum Sector of the Johannesburg Stock Exchange (JSE) is notorious for its volatility, but seems to be very attractive to the investor due to increasing demand for platinum. The JSE is also an emerging market, with potentially stronger growth potential. The aim of the study is to develop a selection framework based on a limited number of key identified indicators, to incrementally reduce the risk of selecting poor performing assets/shares from the Platinum Sector, with anticipated higher rates of return. Eight variables were selected to develop a regression model, but only two variables, namely: Margin of Safety and Intrinsic Value were incorporated in the final regression model. Only four of the twenty years studied revealed a 10% level of significance. It was therefore concluded that no overall reliable selection framework could be developed for the Platinum Sector of the JSE. Individual companies were therefore tested against the regression model, with periods of good fit, but no persistent fit. Aquarius Platinum was the single company to demonstrate a reliable overall fit. Stand–alone risk of each company was hence evaluated against the average Johannesburg Stock Exchange All Share Index. By using the Security Market Line, investment potential in individual companies was identified. en_US
dc.publisher North-West University
dc.title A value–based investment selection framework for platinum shares on the JSE (Ltd) / Olivier, A.M. en_US
dc.type Thesis en_US
dc.description.thesistype Masters en_US

Files in this item

This item appears in the following Collection(s)

  • ETD@PUK [6252]
    This collection contains the original digitized versions of research conducted at the North-West University (Potchefstroom Campus)

Show simple item record

Search the NWU Repository

Advanced Search


My Account