| Good morning Voornaam, Quick links: ADvTECH, Brimstone, Murray & Roberts, Mustek, Quilter and Sea Harvest all feature in Ghost Bites, brought to you by Fedgroup. Nico Katzke of Satrix weighs in on the AI debate and asks some pertinent questions about whether this is a fad or the future - and how best to invest in it. Read the piece here>>> Dominique Olivier tells us the story of creatives fighting back against AI - literally! In this rage against the machine, artists are fighting for their intellectual property rights in extraordinarily interesting ways. Read about it here>>> A brand new episode of the Magic Markets podcast gives you the latest on Cashbuild, Italtile and Home Depot, made possible by B2IT. Made possible by Mazars, the latest episode of the Ghost Wrap podcast brings you the latest on NEPI Rockcastle, Vukile, Italtile, Bidcorp, Spar and Pick n Pay - available here |
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| LISTEN: The ETF product design process
with Siyabulela Nomoyi of Satrix |
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| | | Delving into the ETF product design process and with a discussion on the latest ETF product launches at Satrix, Siyabulela Nomoyi joined me for this insightful conversation.
Don't miss it! |
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| READ: Rage against the machine: creatives vs. AI
(by Dominique Olivier) |
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| As AI threatens the livelihood and intellectual property rights of many artists around the world, Dominique Olivier tells the story of Glaze and Nightshade - the weapons being used by artists as they rage against the machine. Read it here. |
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Local company news:
Ghost Bites is brought to you by Fedgroup.
Sea Harvest is yet another example of a South African corporate that is working hard for the bankers. When net finance costs are up 79% year-on-year, it's hard to achieve a juicy outcome in HEPS - even when revenue moves higher. In this environment, you need to look very carefully at the levels of debt in any company that you invest in.
There's good news at ADvTECH at least, with HEPS up by between 16% and 21%. Quilter also has a good story to tell, with the dividend moving higher and the company signing off on record results.
At Murray & Roberts, it's all about minimising losses at the moment and managing the balance sheet. Brimstone is also managing the balance sheet, yet the company insists on paying a high cash dividend despite the substantial discount to NAV that the shares are trading at.
Finally, Mustek is a strong reminder that lucrative markets attract competition. HEPS came under a lot of pressure as margins compressed in "green energy" products.
There's only one way to get everything you need in one click. Join me in Ghost Bites>>>
There's a brand new episode of the Ghost Wrap podcast for you to enjoy, made possible by Mazars. In the time it takes to drink your coffee, you can get the latest on NEPI Rockcastle, Vukile, Italtile, Bidcorp, Spar and Pick n Pay. Get it here>>> |
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| READ: Artificial Intelligence - fad or future, and how best to invest
(by Nico Katzke of Satrix) |
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| | | Nico Katzke of Satrix asks the real questions when it comes to AI, including the ones that few seem to be asking about its sustainability.
Get his views here. |
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| LISTEN: Magic Markets podcast |
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| In Episode 164 of Magic Markets, we compared an offshore giant to South African equivalent companies. Home Depot is the US blue chip and Cashbuild and Italtile are the local choices.
By kicking off with how terrible local macroeconomic conditions have been for Cashbuild and Italtile, we make the case for learning about and investing in offshore alternatives.
Expand your horizons in this podcast, brought to you by data and process automation specialists B2IT. |
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| Currencies, commodities and rates: TreasuryONE Market Update Powell and many other Fed officials are still expecting rate cuts this year. They just want more confidence around inflation falling first. This news caused the US dollar to fall and the rand to recover somewhat.
It's also been good news not just for gold, but for battered PGMs as well. Palladium was the star of the day, trading almost 8% higher!
For the remainder of this week, the market is looking forward to more testimony by Powell and the ECB interest rate decision as well. The non-farm payroll numbers are due on Friday.
Key indicators: USD/ZAR R18.81; US 10-year 4.12%; Gold $2,157; Platinum ZAR R17,049; Brent Crude $82.88 |
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| READ: Stability doesn't always have to come at a cost
with Fedgroup |
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| | | Fedgroup believes that a combination of fixed-term investments can do more than just withstand a battering. In fact, they cann offer solid returns as well.
Learn more here. |
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International company news:
Foot Locker isn't a good business. Ever since Nike pulled back from supporting wholesalers like these, the company has been floundering. In desperation, the company has looked to more specialist brands to fill the shelves.
Shocker: it's easier to sell the latest Nike sneaker than it is to sell a niche running brand.
The share price took another 30% knock on Wednesday after releasing terrible quarterly numbers.
It doesn't matter how cheap a stock looks. If you haven't worked through the business model and understood the problems, then you are asking for serious trouble in the market.
When we covered the stock in August 2023 in Magic Markets Premium, we called our research "Foot Locker: More Like Hurt Locker" - and we weren't wrong about the strategic challenges. This made the recent rally very suspicious, a view confirmed by this drop. We've also covered Nike a couple of times, which is why we understand the full circle view of why Foot Locker is struggling.
This level of insight is why I'm so proud that Magic Markets Premium is available for just R99/month by subscribing here. |
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| READ: Satrix launches Satrix JSE Global Equity ETF |
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| | | Satrix is releasing a new product that gives a higher weighting to local companies with international listings.
In other words: more of an offshore component. Find out more in this article. |
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| You should expect us in your inbox Monday – Friday. If you don’t receive an email, please check your spam, or junk folder and “move us” into your primary inbox to ensure you get it each morning.
Disclaimer
Our content is intended to be used and must be used for informational purposes only. You must do your own analysis before executing any investments or strategic decisions, based on your own circumstances. We do not provide personalised recommendations or views as to whether an investment approach or corporate strategy is suited to the needs of a specific individual or entity. You should take independent financial advice from a suitably qualified individual who gives due regard to your personal circumstances.
Whilst every care is taken, we accept no responsibility or liability for any errors or omissions in any of our content.
The views, thoughts and opinions expressed in our content belong solely to the author or quoted individuals and/or entities, and not necessarily to the author's employer, organisation, committee or other group or individual, or any of our affiliates or brand partners. |
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