Who is Joshua Benton

Who is Joshua Benton

Joshua Benton is an investment analyst, author and financial writer.

Joshua’s career started out in the commodities trading business before he discovered his passion for the financial markets. He completed his JSE Registered Persons Exams (RPE) through the SAIFM.

Today, Joshua is the Managing Editor of the popular MoneyMorning financial email newsletter, though which he shares his contrarian, actionable investment ideas to over 58,000 South African investors every day. He is also the voice behind FSPInvest’s premium newsletters, South African Investor and Stock of The Month.

Through his work Joshua has built relationships with a network of global and local economic thought leaders, including Chris Hart, Dawie Roodt and Dan Denning. These high-level connections allow Joshua to give his readers ‘insider’ investment insights unavailable anywhere else.

Joshua’s goal is to make money in completely simple, unconventional ways. He enjoys sharing his ideas with investors and entrepreneurs to enhance wealth creation in South Africa. Always outspoken, sometimes controversial, Joshua encourages everyone he meets to think outside the box.

In 2015, Joshua published the Tax Avoidance Quad-Factor report to help his subscribers get their own back from SARS.

Important: FSPInvest.co.za, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The information in this publication is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.

We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions in this publication.

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How you can tap into a 600% growth sensation from Europe’s fastest growing economies

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How you can tap into a 600% growth sensation from Europe’s

fastest growing economies

Deep in the heart of Europe, lie small countries like Romania and Slovakia.

You might never consider investing in these uncharted waters. You may think your money is safer in popular destinations with much larger economies such as the US, Germany or the UK.

Well you may not know it, but Romania is one of the most attractive growth hubs and ranks in the top five fastest growing economies in Europe.

In fact at 4.3%, Romania registered the largest year-on-year Gross Domestic Product (GDP) growth in the European Union, in the first quarter of 2015.

Its close neighbour, Slovakia recorded the third largest year-on-year growth rate of 3.1%.

Economies that grow this fast, attract tons of investment and delivers mega profits for their local companies. That’s all well and good, but what does this have to with us, here in South Africa?

Well, one JSE listed property company is a perfect position to capitalise on this mega growth spurt in Eastern Europe.

Since listing in 2009, this stock climbed over 600%!

And today, I’m happy to say it’s your August Stock of the Month.

This company increased the value of its property portfolio by 251% in two years New European Property Investments (JSE: NEPI) is a commercial property investor and developer listed on the JSE.

It also holds listings on the Bucharest Stock Exchange (BVB) and the Alternative Investment Market (AIM) of the London Stock Exchange (LSE).

The great thing about NEPI is, that it’ll bring you great profits as Europe recovers and the rand weakens. And it’s all thanks to where this company is positioned.

Let me explain…

NEPI has the bulk of its properties in Romania and Slovakia. It also expanded into Serbia earlier this year, to develop more major growth centres.

NEPI selected Eastern Europe as an attractive property development area, because it lacks any serious competition. NEPI currently boasts a portfolio of 32 properties which grew from €874 million in 2014 to €1.25 billion in 2015.

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In the past two years, NEPI increased the value of its property portfolio by 251%. The great part is, NEPI has strong tenants, such as Carrefour (ranked as the fourth-largest retailer in the world), Auchan (14th largest) and Inditex (including Zara) in its retail portfolio.

Not to mention, it also boasts global tenants such as Lenovo, DHL, PWC and Xerox in its commercial buildings.

But you don’t only have worry about attracting tenants – you need to keep them too.

NEPI’s portfolio records an outstanding weighted average lease duration of 5.2 years, while large tenants and major franchisees generate 64% of the contracted rental income. It’s this great acceleration in growth that saw NEPI maintain a vacancy rate of less than 5%.

In 2014, NEPI recorded a vacancy rate of 1.81%, which was an improvement from 2.33% in 2013. Even though the company increased the value and size of its property portfolio by more than two times, it continues to attract popular tenants.

And, NEPI growth isn’t slowing any time soon.

NEPI’s biggest investment to date is poised for great profits In April this year, NEPI announced it had almost completed the amazing new Mega Mall, in Bucharest.

NEPI invested €165 million in the mall and funded it, mainly with equity. The new Mega Mall has 72,000m² of leasable area, out of a total of 230,000m² built. It hosts more than 220 shops, restaurants, and entertainment spaces.

Astonishingly, the mall was 98% leased on its opening day! According to the group, it estimates it’ll receive revenues close to €18 million a year. NEPI’s CEO Martin Slabbert, is excited by the deal prospects. He says, “The estimated yield on the investment is over 10%, which is very good. A mall like this in Berlin would return 4% a year.”

Martin Slabbert also expects an average of 50,000 people to visit the mall, each day, in the next year. This equals more than 18 million people each year!

But that’s not all…

NEPI expands into new territory for even more profits In October 2014, NEPI announced it bought Kragujevac Plaza, in Serbia, for a price of just over €38m. The centre is one of three modern malls in Serbia and what makes it really attractive is it’s the only modern Serbian mall, outside Belgrade.

The Kragujevac Plaza boasts more than 100 stores. Many of them are international and national tenants such as Adidas, McDonalds, New Yorker, Orsay and Tom Tailor.

But since it grew its property portfolio by 251%, surely it’s riddled with debt?

Even with NEPI’s massive growth, it’s managed to reduce its debt NEPI’s incredibly reduced its debt/equity ratio from 1.2 in 2009 to just 0.33 today. The thing is,

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you don’t want to invest in a property company that has too little or too much debt. Too little debt (below 20%) means you’re missing out on potential growth; while too much debt (more than 70%) means the company is at risk of not being able to meet its debt obligations if the economic environment worsens or if interest rate rises.

But with a debt equity ratio of 0.33, NEPI has plenty of room to safely borrow more to fund future growth.

All this growth means steadily increasing cash pay-outs for you!

One more reason why you need to buy this stockOn 7 September 2015, the rand hit a new record low of R13.96 to the dollar. Since the beginning of 2015, the rand fell almost 20% against the dollar.

Why am I telling you this?

To put it simply, it’s a great move to invest in companies that make more and more money as the rand weakens. This is because when a company sells its products in US dollars, British pounds or euros, it automatically turns rand weakness into increased profits.

The best part is, the company doesn’t have to lift a finger to see its profits increase like this.

NEPI’s properties based in Europe, so all the company’s earnings and dividends are in euro. This means your cash pay-out gets bigger as the rand weakens!

But to make sure NEPI’s worth your money, I analysed this stock using our trusted twelve guru investment strategies.

The world’s greatest penny stock investor brands NEPI a “fast-growing” stock The Peter Lynch strategy looks for companies who are fast-growers, stalwarts or slow-growers. NEPI’s considered a fast-growing company. These are stocks with an EPS growth rate of at least 20% per year.

This strategy adores companies that have several years of fast earnings growth. This shows that companies have a proven formula for growth that can continue many more years.

To fit in perfectly, a company’s earnings growth must be in the range of 20% to 50%. The EPS growth rate for NEPI is 31%.

Next, the Peter Lynch Strategy uses the Equity/Assets Ratio (E/A) to check a company’s health. NEPI’s E/A ratio of 81% is extremely healthy and above the minimum 5% this strategy looks for.

Finally the Peter Lynch strategy uses return on assets (ROA) to measure a company’s profitability. NEPI’s has a ROA of 5.72%, which is above the minimum 1% required, to fit perfectly in this strategy.

The Martin Zweig strategy four-part test confirms NEPI’s awesome growth Martin Zweig is a very conservative growth investor. To fit in perfectly in the Martin Zweig strategy,

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a stock must meet its earnings-related criteria showing that a stock’s earnings growth is…

• At a high rate over the long haul

• Persistent over several years in a row

• Accelerating in more recent quarters

• And sustainable

Here’s an analysis of NEPI using the Martin Zweig strategy.

Firstly, the Martin Zweig strategy likes to see the growth rate of a stock’s prior three quarter’s earnings, less than its growth rate of its current quarter earnings.

NEPI’s prior three quarter earnings were around 34%, while its growth for its current quarter earnings is more than double that – over 84%.

Next, a stock’s EPS growth rate for its current quarter must be greater than or equal to its historical growth rate. NEPI’s growth rate for its current quarter is 84% - double its historical growth rate of 31%.

Then, companies must show persistent yearly earnings growth. This means a company’s earnings must increase each year for a five year period. NEPI’s yearly EPS growth rate for the past five years were 107.65c 203.39c, 241.73c, 277c and 434.76c.

So you can clearly see a fantastic increase of NEPI’s yearly growth rate.

Finally, one final earnings test the Martin Zweig strategy analysis, is that a company’s long-term earnings growth rate must be at least 15% per year. NEPI’s has a long-term growth rate of 31% - more than double needed to fit in the Martin Zweig strategy.

Profit from this property growth-guru today! There’s no doubt NEPI is solid growth company, poised for more acquisitions in Romania, Slovakia and Serbia. And, I’m confident about NEPI continuing its takeover in the Central/ Eastern Europe property market.

In fact, we have NEPI in the South African Investor Value portfolio. And it’s returned a healthy 70% so far!

So, with massive capital growth, an attractive dividend yield of 2.97%, a rock solid property portfolio and a built in rand hedge; NEPI is perfect for just about anyone to profit from property. Buy New European Property Investments (JSE: NEPI) below R140 today

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Discover how you can bank R320,000 by this time next year

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Who is Joshua Benton