TOP-3 of the worst deals on JSE. The worst shares to Buy in 2026 1/2

In this review, we'll discuss companies that some believed in, only to find their investments disappointed or even catastrophic. Today, we'll explore the other side of the coin that many prefer to keep quiet about—the side that every investor has been to once and never wants to be there again. Which stock purchase turned out to be the most disastrous financial event?

Trade #1: Investment in Choppies Enterprises Limited (CHP)

Earnings: -81.43% in six months (-162.86% annually).

It would seem - what could go wrong? This isn't some one-day speculative stock. We're talking about a reputable major player, Botswana's largest supermarket chain, which also has a presence in South Africa, and not just an occasional presence, but is publicly traded.

At first glance, the food trade seems like a win-win situation: people buy groceries in any situation even during war or high inflation. Logically, you might think this guarantees stable profits... No. High competition, which Choppies Enterprises Limited seems to be struggling to cope with, led to massive losses for the company.

In early 2026, investor panic reached its peak amid weak operating margins in retail and regulatory complications with cross-border capital flows. The stock's price was finally crushed by a sharp decline in net profit in interim reports and a protracted exit from problematic regions, triggering a mass exodus of institutional and retail investors from the stock.

In fact, it was very easy to fall into the Choppies Enterprises trap because the stock chart looked completely different from what it does now: it was an upward trajectory, like the trajectory of a rocket taking off... which, as it turned out, soon began to crash or perform dangerous maneuvers. On the first trading day of January, the chart looked so impressive that it was easy to ignore the rule of never buying anything at an all-time high. There were certainly some hoping for further growth.

Well, that was an experience that had to be paid for. Not everyone can withstand such a decline. In January, the company's shares could be bought for 793 cents, and now they are worth 143 cents – a loss of 650 cents on each share purchased, and that's no small feat, as many people buy cheap shares by the hundreds and thousands.

Choppies Enterprises Ltd, price chart on JSE, July 2026

Is Choppies Enterprises worth investing in now?

Once again, we find ourselves in a curious situation: knowing the growth potential, buying shares at their lowest prices is both profitable and risky. The food retail sector in the region is highly competitive. Choppies has yet to demonstrate its ability to consistently generate free cash flow in the South African market. Perhaps they will simply exit the market, which has proven unsuccessful. Much depends on management and their ability to turn the business around. If you're willing to take risks and believe that after a downturn, there's always a rise, why not give it a try?

Deal #2. Purchase of Sappi Limited Shares (-63.91%)

Earnings: -63.91% (=-127.8% annualy).

Once again, the leading position in the ranking of the worst deals is occupied not by another speculative micro-cent stock, but by a major paper and pulp producer. The company, which exports its products to the US and Europe, may be trustworthy, but something went wrong: a drop in global prices for dissolving wood pulp (DWP) and graphic paper on global markets due to falling demand. Sappi was forced to record huge write-downs and losses (impairments totaling $276 million for European assets) as its cost of production turned out to be higher. The situation was exacerbated by high debt levels; due to falling profits, the Net Debt/EBITDA ratio jumped to a dangerous 6.1x. As with the Choppies Enterprises supermarket chain, it was very easy for an investor to fall into a trap. In the first trading days of January, a recovery in the stock price was observed, and even signs of a trend reversal were discernible. However, this was merely a price correction. The downward trend continued with renewed momentum, and the decline continues even today. The company's shares were worth over 3,600 cents in 2025, but on June 30, they were only 950 cents. By purchasing shares in January at 2,462 cents, one could have lost 1,510 cents on each share purchased.

Sappi Limited price chart on JSE, July 2026

Is it worth investing in Sappi now?

Sappi shares, which have fallen several times in price, are more than just buying at a discount. This is a typical speculative strategy that has made many millionaires. Sappi isn't going bankrupt, but rather a hard bottom in the commodity cycle. The shares could finally reach their low and reverse, especially if commodity prices rise. The company is currently actively establishing a 50/50 Joint Venture with UPM to optimize its European paper business, which should reduce costs by the end of 2026. If the global economy begins to recover, Sappi will rebound strongly, but for now, be prepared for high volatility and a further decline.

Trade #3: Investing in Cilo Cybin Holdings (JSE: CCC)

Earnings: - 63.89% (-127.7% annually)

Unlike the first two bearish victims, Cilo Cybin Holdings is a speculative stock, a microcap. There are no traps in this case: the company's shares were already losing value in January. Investors who bought these shares understood the increased risk. However, what investors couldn't have known was the company's internal problems, which were the source of the problems. No external factors, no geopolitics. Cilo Cybin Holdings is solely to blame for the current situation.

Corporate chaos: In March and April 2026, the company was rocked by a series of senior management layoffs, including the CFO and key board members.

Technical shock: On March 6, 2026, the company issued an official SENS release on the JSE, in which it announced "erroneous trades due to a system malfunction at one of its brokers." This technical incident triggered a dramatic price drop, panic among retail investors, and completely undermined liquidity.

Having bought shares in January at 217 cents, by the last day of June, one could have seen a loss of 139 cents on each share purchased.

Cilo Cybin stock price, July 2026

Is it worth investing now?

We definitely cannot recommend buying these shares today. The stock has become a venture capital bet with a ruined reputation and high management uncertainty. Technical analysis indicators are also showing a strong sell signal.

Summary

If you're just thinking about starting to invest, we may have scared you off, and this all sounds like a weird bedtime story, but financial losses in the stock market are common. No one is immune to mistakes. The top two companies in the ranking could have misled even the most experienced investor. Financial losses in a business are an integral part of it, regardless of whether you own it or just invest in it.

However, it's worth noting that there are investors who profit even from falling stock prices. CFD brokers allow you to profit even from falling stock prices of unprofitable companies by opening trades in the appropriate direction. In this case, trading these stocks could result in a substantial profit. The main test in financial markets is determining where the bulls are and where the bears are. If you haven't had any exposure to the stocks of the companies mentioned, you can still be considered a successful investor, as you've made a Hold decision and reached the break-even point in your investment, but staying at break-even won't last long.

Stay active in the stock market, and we hope that next time we don't see your trades among the worst.
Stay active in the stock market, and we hope that next time we don't see your trades among the worst.