You’re the Reason…

‘Tis the season to give thanks … Now that the Thanksgiving holiday weekend is coming to an end, and we’re all stuffed with the same food we’ll likely see in various leftover mutations throughout the next week, I want to press pause on the holiday craze for a moment. This is the time for reflecting and giving thanks after all, and I know that I personally don’t give enough time or recognition to things I should be thankful for.

So, even though I’m a little late, I just want to take a moment to give thanks — to you.

All of us over here — Jeff, Ted, Chad, Bob, Jocelynn and the rest of The Sovereign Society team — wouldn’t be able to do what we love without you.

We wouldn’t be able to share our research, sharing ways to protect your privacy, your wealth, your sovereignty, without your support.

So thank you.

Across the years, we’ve had the chance to talk with you at conferences and chat through emails or over the phone, allowing us to share in your successes and frustrations, and it’s put a face on why we fight so hard to get our information out there.

So here’s hoping that all of us have found many things to give thanks for this year, in spite of America’s rocky future. For now, we at least have the freedom of choice, and for that, we are grateful.

Today will be a short note, since Jeff, Ted and the other editors are still recovering from the holidays. Jeff tells me he’s been spending quiet time at home, and Ted says he spent Thanksgiving Day watching South Africa play India (in cricket).

So this week, we’ll just take a quick look at some updates in the Sovereign Investor portfolio. And as a reminder for those who haven’t had a chance yet, you can read Jeff’s latest monthly report here.

In the Sovereign Investor portfolio … Earlier this month, Vodafone (NYSE: VOD, hold), our global telecom giant, announced that its organic service revenue had increased 1% and that EBITDA (earnings before interest, taxes, depreciation and amortization) rose 1.9% — its fifth consecutive quarter of improving revenues.

Right now, 80% of Europe’s population has Vodafone’s 4G coverage, while 94% of its targeted urban areas in India have its 3G coverage, and 47% of South Africa has its 4G coverage — numbers that are all significantly higher than just two years ago.

The company also has a program called M-Pesa, which allows users to utilize text messages to deposit or withdraw money, pay a bill, pay at a store or transfer money to a friend. It’s the equivalent of the Apple Pay system, but it has been operating for years overseas, mainly in Kenya.

Today, M-Pesa has 665,000 customers in India and is rapidly expanding. In South Africa, users reached 6.8 million.

Our shares are up 34% at the moment and remain a hold.

Noble Group (Singapore: NOBL, buy up to S$1.50), our Singapore-based commodity giant, achieved positive cash flow a full quarter ahead of its originally planned schedule.

This is a great sign that the company is starting to turn things around. Despite the depressed commodity market, which has been crimping margins, and accusations that Noble manipulated its accounting statements, the company is showing signs of life.

As you know, these issues have put pressure on Noble’s share price, which is down more than 60% in 2015 alone.  And right now, the company fetches just 4.6 times its 2016 expected earnings. That’s ridiculously  cheap.

To put this in perspective, the stock hasn’t traded at an earnings multiple that low since 2008, during the height of the financial crisis. And, in a little over the year following that, the stock price rose more than 400%. In short, now is not the time to bail on Noble. We just need to be patient.

So Noble remains a buy up to S$1.50.

In dividend news … Northland Power (Canada: NPI, hold) is dropping its C$0.09 monthly dividend into your account on December 15. Link REIT (Hong Kong: 823, hold) is paying us its semiannual dividend of HK$0.99 on December 4.

Until next week,

Jessica Cohn-Kleinberg
Managing Editor, Premium Services
November 29, 2015
sovereigninvestor@sovereignsociety.com