| Good morning Voornaam, The big news yesterday was clearly the Barloworld scheme of arrangement. The market gave it a resounding no, with only 36.6% support from those present at the meeting. That's even lower than the support that the directors recently got at the AGM for their re-election!
Aside from my views on this in Ghost Bites, you can also read a detailed media statement from Barloworld. They value the Ghost Mail reader base and hence the group has placed an article setting out the details for the standby offer, as well as an official response by the board to corporate governance concerns. I strongly suggest that you read this alongside Ghost Bites today.
You'll find other goodies in Ghost Bites as well, like the ongoing trend of sober curiosity. Gen Z and younger Millennial consumers aren't the same as Boomers. Lab-grown diamonds have hopefully taught you this by now. Although I don't think alcohol is at risk of disappearing, I have definitely noticed a trend of reduced consumption among more health-conscious generations. Beer volumes are declining at AB InBev, as you'll see in the latest numbers.
As for food, we have little choice but to eat and we certainly do enjoy our restaurants. Bidcorp loves that trend, with yet another solid set of results (even if the rand hurt them).
Another company with strong earnings at the moment is Momentum, where they are firmly living up to their name. As for AECI, Hammerson and Oceana, things haven't been so easy.
For more on these insights and for the usual assortment of Nibbles, click here and read Ghost Bites>>>
With the end of the tax year upon us, I hope you've maximised your tax-free investment annual allowance. I also hope that you've got a plan for how to maximise it next year. To explain why this structure is so powerful and should never be wasted, Siyabulela Nomoyi of Satrix joined me on this podcast>>>
In the latest No Ordinary Wednesday podcast presented by Investec, Jeremy Maggs and Tinus Rautenbach discussed whether the tech titans in the US can continue to dominate the market this year. Find it here>>>
Have a lovely day! |
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| INVESTEC: International Opportunities Limited - a Chinese equity structured product |
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| China is a land that is fraught with risk and brimming with opportunity. With enhanced upside as well as downside protection, International Opportunities Limited is a structured product that seeks to balance the risks and rewards available in Chinese equity markets.
International Opportunities Limited offers 1.3x geared exposure to the CSI 300 Index, capped at 60% growth for a maximum return of 78% in USD. In addition, there is 100% capital protection at maturity in USD.
Japie Lubbe of Investec Structured Products joined me to discuss the structure in detail. Get it here>>> |
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| SATRIX: Don't waste the TFSA opportunity |
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| | | Tax-free savings accounts (TFSA) are one of the most building blocks in any equity portfolio. The advantage of compounding tax-free returns over a long period is incredibly powerful and can really turbocharge a long-term wealth creation journey.
To discuss the importance of TFSA investments and the opportunities available to investors in the ETF universe, familiar voice Siyabulela Nomoyi of Satrix returned to the Ghost Stories podcast.
Enjoy it here>>> |
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| GHOST WRAP: Retailers on sale on the JSE - a review of the first few weeks of 2025 |
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| The retail sector got off to a very poor start in 2025. With practically the entire sector down, are there stocks that were punished more than they should've been?
This podcast is a useful summary of recent retail updates across the clothing and grocery sectors, as well as other relevant areas.
You can find the recording and the transcript (with charts) at this link>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| Barloworld: standby offer triggered following scheme of arrangement vote |
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| Barloworld has released a detailed media statement dealing with the mechanics of the standby offer, as well as the official response by the board to corporate governance concerns raised by the market. I highly recommend that you read it here>>> |
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| DOMINIQUE OLIVIER - Get rich or dope tryin': business lessons from Lance Armstrong |
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| | | Some people will do absolutely anything to win. In some instances, we call that determination. In others, we call it greed. Just how blurry is the line between those two things? Take a lesson from the most tested athlete in the world. Read it here>>> |
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| INVESTEC PODCAST: Can tech titans keep up the pace? |
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| | | Big tech stocks have stabilised after the DeepSeek shock in January, but will they continue to dominate the market this year, or is the next disruption around the corner? Tinus Rautenbach, head of Investec’s new trading and investing platform, Clarity, shares his views on the latest episode of the No Ordinary Wednesday podcast. |
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| International Business Snippet: |
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| The focus was firmly on NVIDIA yesterday evening, with the iconic tech company largely carrying the can for the sector. It didn't disappoint, with Q4 earnings that beat expectations. Net income and revenue were up by 78% and 80% respectively, while full-year revenue more than doubled.
Still, that means that the rate of growth is slowing, even if it remains at very high levels. The guidance for the first quarter of the next financial year is revenue growth of 65%, which is way off the 114% full-year growth rate in 2024. The debate isn't around whether NVIDIA is capable of growing. It's around whether the rate of growth can support the valuation.
Our latest research in Magic Markets Premium is on The Trade Desk, a company that sits right at the heart of the omni-channel advertising space. By connecting agencies with a variety of advertising opportunities for their clients, the company enjoys wonderful growth tailwinds. It also trades at an insane multiple, which makes the analysis harder than you might think. Our subscribers can enjoy our detailed work on this growth stock. |
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| Magic Markets: Private markets are a hive of activity |
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| | | Magic Markets: For companies seeking capital, founders wanting to exit their stake and investors who desire diversification and solid returns, private debt and equity markets offer a vibrant ecosystem. Dino Zuccollo of Westbrooke Alternative Asset Management joined us to discuss trends and strategies in this asset class, along with general levels of adoption by investors. Get the insights in this podcast>>> |
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| US and European index futures are flat to slightly lower in early trading as markets assess the implications of Trump's potential tariffs on European goods.
Asian markets have generally declined, with recent gains being consolidated and semiconductor stocks facing pressure.
The JSE All-Share Index is expected to open flat to slightly lower, following its global peers.
The dollar and US Treasury yields are showing modest gains but remain near their short-term lows. The rand is slightly softer on the day.
Oil prices continue their downward trajectory, reaching their lowest levels in over two months as global supply concerns increase while demand forecasts weaken following recent disappointing economic data from both the US and Germany.
Gold prices are extending their correction from recent record highs.
Key Indicators: USD/ZAR R18.47/$ | US 10yr 4.27% | Gold $2,895/oz | Platinum $965/oz | Brent Crude $72.20
As often as practically possible, insights from the IG Markets morning macro update by Shaun Murison will be featured here. Where this isn't possible, only indicators will be provided. If you want to learn more about trading, refer back to The Trader's Handbook, a podcast series that takes you through many of the important principles in trading. |
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