There's so much new stuff today that I'm really looking forward to sharing with you. Plus, there's more to come tomorrow!
Let's start with our daily staple, Ghost Bites. Bidcorp is the pick of the litter among the headlines, with the global food service giant reminding us why investors rate it so highly. I must also highlight MC Mining though, which has managed to bring significant foreign investment into our coal industry in their latest deal. Over at Murray & Roberts, there are some signs of a turnaround. PPC feels confident enough to pay a special dividend. There's a lot of good news here, right?
It can't all be good, of course. Transpaco released some pretty tough numbers. Finally, Finbond announced a deal that makes little sense to me either strategically or financially.
Get all the details in Ghost Bites here>>>
Then, I'm thrilled to share Episode 5 of The Trader's Handbook with you. Hot off the press, Shaun Murison of IG Markets South Africa joined me to discuss pairs trading and how powerful that strategy can be. With lessons learned from the short on Mr Price that I tried in my demo account, I'm learning every week about how trading differs to investing. You can learn too by following the series. The latest show just might be the best one yet! Find it here>>>
There's also a brand new episode of Ghost Wrap, featuring the latest on Italtile (some good news and some bad news), ADvTECH and STADIO (only good news, really), and Harmony - the best news of the lot. Brought to you by ForvisMazars, you can enjoy it here>>>
I'll leave it there, as there's plenty for you to sink your teeth into.
Have a great Thursday! |
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FEATURED: The Trader's Handbook Ep 5 |
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| | IG Markets Episode 5: Pairs trading offers a great opportunity to play one stock off against another, a strategy that means you can take short positions even in a more bullish market. Learn all about it at this link>>> |
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FEATURED: Brand new Ghost Wrap |
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Ghost Wrap: With thanks to Forvis Mazars, this podcast brings you the latest on Italtile, ADvTECH and STADIO as well as Harmony, all in just a few minutes in the Ghost Wrap podcast. |
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FEATURED: Unlocking the true value of TFSAs for South Africans |
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| | Satrix: In an article that I could not agree with more, Duma Mxenge talks about the importance of tax-free savings accounts and why they could be rebranded to make it clearer that this should be the cornerstone of an investment journey. Get his views in this excellent article>>> |
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FEATURED: How to build a portfolio |
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Magic Markets: Picking stocks is great, but what about the portfolio that they belong in? How do you get the position sizing right, or create a coherent strategy? We explore this topic in the latest Magic Markets podcast and transcript. Find it here>>> |
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Ghost Bites: The latest on Bidcorp, Finbond, Murray & Roberts, MC Mining, PPC and Transpaco, along with various Little Bites in Ghost Bites here>>> |
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- Investec Podcast: As part of the Investec No Ordinary Wednesday series, you can enjoy Jeremy Maggs in conversation with Tinus Rautenbach, head of Investec's online platform Clarity, as they discuss the rise of self-directed investing. Find it here>>>
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- Nico Katzke of Satrix: The GNU has driven significant optimism around the South African market. To help us understand where this is playing out and how the carry trade protects the rand, Nico Katzke joined me on Ghost Stories. Find it here>>>
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- Magic Markets: What is the right way to prepare for a major sell-down in the market, or even a crash? It's all about research and watchlists, as well as having money that is ready to go into those dips. We discuss these concepts in this podcast>>>
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International Business Snippet: |
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When it comes to business news, few things make me happier than Lego absolutely killing it. I struggle to think of a company that has consistently brought more joy to families around the world. The company is privately owned, but they still make their numbers public. Revenue increased 13% during the first six months of the year, with great growth in volumes and the benefit of smart partnerships coming through. Dominique Olivier wrote a brilliant piece on Lego recently in Ghost Mail that I think is worth resharing to help you understand the backstory to the world's best bricks.
In listed company news, Foot Locker beat Wall Street estimates and saw its gross margin expand for the first time in over two years, yet the share price took a 10% bath anyway. Share prices can behave strangly in corporate turnarounds.
Speaking of turnarounds, Abercrombie & Fitch is a great success story in that space. You wouldn't think so just by looking at the market yesterday though, with the share price down 15%. Again, this is a company that beat on revenue and earnings per share.
Has the market overreacted on both names? Did the jitters related to NVIDIA numbers result in a risk-off day for everything, as you'll see in the market commentary from IG Markets further down? Those who enjoy taking advantage of short-term dislocations might want to watch both share prices closely. I've included a chart of both share prices over the past 12 months below.
Our recent Magic Markets Premium research on retail trio Costco, Walmart and Target will add to your knowledge of the sector. Best of all, you can get those reports plus so much more for just R99/month, a wonderful investment to make in yourself. |
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IG Morning Call: daily macroeconomic update |
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Despite better than expected quarterly results from heavyweight counter NVIDIA last night, the US tech sector has led equity markets lower. Short-term angst appears to have been triggered by NVIDIA’s weakened outlook, with the company having shed 6% in after hours trade.
Asian equity markets are also trading lower in tech sector led weakness, although European Index futures are suggesting a slightly firmer open.
On balance we are expecting a flat open for the JSE All-Share Index today.
The dollar index trades slightly higher having gained notably against the Euro in particular overnight. The rand is marginally softer on the day.
Gold has gained despite a firmer dollar.
Oil prices have continued to decline from overbought territory, although now appear to be finding some support around the $77.50/barrel mark.
Preliminary GDP and weekly Unemployment Claims data out of the US will be a key focus for traders today.
Key Indicators: USD/ZAR R17.80/$ | US 10yr 3.83% | Gold $2,518/oz | Platinum $939/oz | Brent Crude $77.50
The macroeconomic update is based on IG's morning call update |
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