Also does an abnormally high daily volume mean that is a share to look at? And finally, if I wanted a portfolio with 50 percent high risk and 50 percent safer growth shares, what would you suggest I invest in?

Answer:
The PE ratio is the current share price (P) divided by the earnings (E) per share for the past year. If the share price is R10 and the past year's earnings came to one rand, the PE Ratio is 10:1 (but they never print the ‘:1’)

Earnings per share (EPS) growth rate is a much more straightforward way of looking at past performance. So, if a company had EPS of one rand in 2006 and R1.50 in 2007 is EPS growth rate would be 50 percent.

The only indication of future growth rates would come from the managing director’s guidance to shareholders at their Annual General Meeting but past performance is some indication of future potential

Abnormally high volume can mean a lot more buying, or selling, interest. It should be viewed alongside the direction of the share price. But watch out for trying to become a day trader, as opposed to an investor.

On your final question, I am not a stockbroker and therefore cannot give you specific share suggestions. Open a share trading account with Absa or Standard Securities and look at their suggestions. Remember, you should start with at least R10 000 and spread the money over four to five shares.

Also think about investing in something like Satrix (www.satrix.co.za) — an exchange traded fund which invests in various sectors on the JSE.