| Tuesday 31 August 2021 Good morning Voornaam,
JSE small caps are funny things. Relatively mundane announcements can drive chunky moves in share prices, like a 7.75% jump in Bell Equipment based on a renewed cautionary announcement about the potential IA Bell buyout. There was no new information in the announcement.
For those who don't know, Bell Equipment's listing is potentially on the chopping block as the controlling family intends to take it private. This is one to watch, as a fight between the family and activist shareholders has been brewing for a long time.
Another small cap that bounced yesterday was property group Putprop, which closed over 16% higher after announcing that HEPS could be as much as double the FY20 number. Further good news from the property sector is that MAS Real Estate has declared a dividend for the year to June 2021.
Not all property news is positive at the moment, with Hyprop announcing that distributable income for the year to June 2021 will be between 30% and 34% lower than the previous year. The shopping centre operator has been among the hardest-hit companies from the pandemic.
Super Group released excellent results, with HEPS up 88.8% and a dividend declared of 47 cents per share. The yield is nothing to get excited about, but any reinstatement of dividends in this environment sends a strongly positive signal.
Sea Harvest Group released its interim results, which saw HEPS climb 18% despite gross profit increasing by just 2%. Nearly half of the group's revenue is generated internationally and the group also holds food businesses that are unrelated to fishing.
The founding family of Dis-Chem has reduced its stake in the group and enabled a B-BBEE deal at the same time, se lling 10.05% of Dis-Chem to a consortium that includes Royal Bafokeng Holdings.
Sun International has managed to steady the ship effectively, with a loss of just R7m vs. R885m in the prior year. Group debt has reduced from R11.1bn at June 2020 to R7.6bn at June 2021.
Today's lead story is on Ascendis, which has finally released its long-awaited restructuring announcement. Investors will be pleased to bring this to a close, but I cannot ignore the fact that risks do remain in the structure. Whether or not it will emerge as a butterfly is something each investor must decide.
My other story is on Tiger Brands, which has sold its investment in Nigeria. Interestingly, the company highlighted that it still sees Nigeria as a "market of great potential".
The latest Magic Markets show features Nerina Visser as our guest. We talked about ETFs, ETNs and how to use them in constructing a portfolio strategy. It's a must-listen for anyone serious about investing. You'll find the episode here.
Other articles today include Allan Greenblo of Today's Trustee writing about the assault on our pensions, while Currency Assist updates us on the latest in the forex markets.
As a final note, there will be no InceConnect emails sent out on Wednesday and Thursday this week, due to systems upgrades by the Ince team. I know, I know, you'll have to just live without it for two days! I'll try make it up to you on Friday.
Have a good day in the markets!
The Finance Ghost
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Local and Offshore Market News |
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