Extracted from text ... Number 55 - Part 5
Investment Basics XLV. Technical analysis - breaking-out on an upward trend?
At the turn of the last century the amount of information available to potential investors was minimal. Corporate accounting and reporting
systems were still na?ve, and the requirements for public disclosure were dismal. Nor was there much in the way of hard statistical data
about the economy. Perhaps partially in response to the spectacular increases in stock prices that peaked in mid 1901, Charles H. Dow,
editor of the Wall Street Journal, published a famous series of articles from 1900 ..
Extracted from text ... Number 55 - Part 4
JH Hall and SM Millard
An assessment of the value of brokerage information for individual investors
Many investors who invest on the JSE Securities Exchange (JSE) base their investment decisions on information available in the general
and financial press, on discussions in radio and television or on information obtained from a broker or investment consultant. The purpose
of this study was to determine whether an individual investor, using information obtained from a stockbroking company, can earn a return
in excess of the market return on the JSE.
To test the hypothesis that it ..
Extracted from text ... Number 55 - Part 3
GS Cloete, PJ de Jongh and T de Wet
Combining Vasicek and Robust Estimators for forecasting systematic risk
The problem of estimating and forecasting systematic risk, or the so-called beta parameter in the market model, is well-known and has
been studied by several authors (see e.g. Lam 1999, Lally 1998, Bowie and Bradfield 1998, Boabang 1996, Draper and Paudyal 1995,
Murray 1995 and Bartholdy and Riding 1994). The classical estimator for beta is the well-known ordinary least squares (OLS) estimator,
but several authors have shown that this estimator suffers from several deficiencies, e.g. ..
Extracted from text ... Number 55 - Part 2
S Gilmour and EvdM Smit
Institutional herding: Evidence from the South African unit trust industry
The synchronous trading by institutional investors has interested market analysts, fund managers and academic researchers for some
time. Recent research in this field has attempted to establish empirical evidence of so-called herding behaviour by institutional investors
when trading securities. In addition to studying the presence of herding, most research has modelled the reasons that underpin its
existence, and attempted to measure the impact of this phenomenon on share prices and equity market indices. This impact is in fact ..
Extracted from text ... Number 55 - Part 1
C M'kombe and M Ward
Aftermarket price performance of initial public offerings on the JSE
The objective of any initial public offering (IPO) is to achieve the highest value for the issuer while ensuring a buoyant start to secondary
trading and strong long-term (aftermarket) performance. A share is underpriced if its offer price at the IPO is lower than the closing price
on the first day of trade. The problem of underpricing has been extensively researched and clearly indicates some loss of value to the
issuer. However, underpricing can act as a positive ..