B-BBEE Share Spot: All you need to know about empowerment shares

Ujuh Correspondent 

Alternative business and economy news platform, Ujuh, is rolling out a new editorial feature series focused on the broad based black economic empowerment shares trading market titled B-BBEE Share Spot.

The B-BBEE Share Spot comes to fill a huge gap, if neglect, in the information needs of the multitudes of investors who hold B-BBEE shares listed on the empowerment segment of the Johannesburg Stock Exchange (JSE) and in dedicated over-the-counter-platforms (OTCs) such as Equity Express. These shares include those of:

The Gap

The majority of investors in these shares are first time shareholders and therefore have greater information needs than the mainstream investors. But the financial and economic news media industry, built to serve the mainstream investors, has totally neglected them. Where there is limited coverage, it is poor and inappropriate.

And it’s clear from the interactions we’ve had with many of the concerned investors that the issuers of B-BBEE shares are themselves at a loss when it comes to communicating with their investors. That’s because they employ approaches suited for the educated mainstream investors which are mostly useless where the B-BBEE shares investors are concerned.

Ujuh is in a good position to make these judgments and to come up with editorial content that fills the void because it exist to serve this market and has built considerable rapport with it. The platform has over the years developed a tailor made editorial approach that’s proving to be highly effective in serving the concerned market.

However ujuh realises that it has been haphazard in its approach. And the title is preparing roll out a more organised and comprehensive editorial package to better serve this market.

Salient Points

Primarily hosted on ujuh the B-BBEE Share Spot feature series will be syndicated out via sister titles SATopShops and ProBonoMatters and through republication arrangements with other independent media titles. It will also be spread far and wide via Ujuh’s social media networks.

The primary purpose of this initiative is to track market movement of various listed empowerment shares while educating the holders of these shares about the workings of the share trading market. The feature can be compared to the daily securities’ market reports found in the mainstream financial media. But it comes with a different posture to cater for the different information needs of the concerned market.

The B-BBEE Share Spot is conceptualised as a once-a-week feature posted on Mondays which allows for a review of the previous week share movements and weighty factors to consider for the week ahead. The overall posture will be one that seeks to educate and not talk over the readers. This posture is something we have practices and mastered over the past five years in a rhythm that has drawn considerable eyeballs from the target market to our platforms.

The Elements

Each B-BBEE Share Spot will be made of a package of articles:

  • Mini share price tracking reports of each B-BBEE stock
  • A feature of about 300 words that zooms in on remarkable share price movement or activity around the stocks

These will be complemented by the following at appropriate intervals:

  • A once a month wrap of all B-BBEE share movements
  • Intervening features about extraordinary activity or statutory reports
  • Investment analyst views
  • A package of quarterly trend spotting analysis

Benefits

Ujuh’s offering comes with a number of benefits for the B-BBEE Shares Universe

Education: It comes with the primary purpose of educating the concerned market about the workings of the market.

Broadening Participation: A robust and comprehensive editorial coverage of the B-BEE share trading activity should encourage more people to enter the share trading market.

Liquidity: The B-BBEE share trading market is dogged by poor liquidity. Broadening participation should address this to some extent.

Unlocking Value:  Improved liquidity of B-BBEE stock should unlock further value in the concerned shares.

Graduation Factor: The education of the concerned market should encourage the concerned investors to graduate from an exclusive focus on B-BBEE shares into other stocks and asset classes.

Culture of Savings and Investment: This should benefit the country’s culture of savings and investment which is generally not impressive.

Ujuh is open to teaming up with third parties on this venture and has designed some partnership options. Contact us on news@ujuh.co.za for further information. 

news@ujuh.co.za

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