9-Feb-2012 - Small cap’s profit spike in 2011

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Will it continue? JOHANNESBURG - The below graph shows the small-caps sector's reported profits. More importantly, it is the published profits (thus always historical in nature, by around six to nine months) and it grew during 2011: Why cheap nba jerseys does the profit lag six to nine months? Well, the results of companies are only published after they are earned. The JSE works on a six monthly reporting cycle. Furthermore, companies get up to three months to compose the results before publishing them. Thus, these profits are six to nine months lagging and, in fact, the rise in profits seen during 2011 is more than NFL JERSEYS likely mostly relating to the first half of that calendar year. Overall, though, the trend is strongly encouraging and we are seeing it in a range of positive trading updates/results coming out recently Pan African Resources PLC (PAN), Hudaco Industries Ltd (HDC), Howden Africa Holdings Ltd (HWN), Ellies Holdings Ltd (ELI)... Small cap sector profits grew 19% from January 2 2011 to December 25 2011, which is far above the sector's total return (ie, share price growth plus dividend paid) of 1.1% over the same period. In the absence of any “black swan” event (disclaimer that we must use in these volatile times), I expect this trend of steadily growing small-cap profits to continue during 2012. *Keith McLachlan is a senior equities analyst of small and mid caps at Thebe Stockbroking. This piece first appeared on SmallCaps.co.za. custom nhl jerseys

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