Are you quaking in your boots?

The recent natural disaster in Japan was the catalyst for the correction that was due.

It created a nice opportunity to buy stock at more reasonable levels. It looks like the relief rally is over and volatility is more subdued for the moment.

We are still in a strong bull market and we expect the market to test the highs again.

There are rumours of Portugal needing a bailout thus igniting the embers of the European debt crisis again.

We'll probably see some volatility which will create enough trading opportunities. So don't use too much leverage since opportunities will be aplenty.

Safe trading

NAV on Reinet

The NAV of Reinet is R14,11, and the Spot price is R11.09, a simple calculation tell us that the discount is 25.5% and that should Reinet unbundle all their BATS (British American Tobacco) shares to shareholders and one sell these shares in the market one would receive R11,40 per Reinet share, and the rest of Reinet is for free.

Reinets total assets are R27,272,028,032 with 1,959,412,860 shares outstanding.

We trade Reinet (buy at R11 to R11,10 and sell at R11,60 to R11,80)