View in web browser

Good Morning Voornaam,

Ghost Bites

Afrimat sees a drop in profitability
Aveng looks increasingly interesting with a strong Australian order book
Grindrod jumps 6.5% after a trading update
Karooooo releases solid second quarter numbers
RCL Foods wants to unwind its B-BBEE deal

For these stories, along with news from Ascendis and PSG Konsult, make sure you re ad Ghost Bites>>>

Carzuka bazooka

*shareholder rant begins*

Karooooo is the proud owner of Cartrack, a truly excellent business that is growing subscribers and running at an adjusted EBITDA margin of over 50%. It earns recurring revenue and is capable of growing globally. It really does tick a lot of the boxes.

Inexplicably, Karooooo also owns Carzuka, a car dealership that the company tries to describe in a way that would get Cathie Wood excited all over again about the 4th Industrial Revolution. A quick look at the gross margins makes it clear that it really is just a car dealership and a loss-making one at that.

When markets are under pressure, we want to see businesses focus on what they are actually good at. With a share price down 30% this year, Karooooo needs to be selling subscriptions, not an assortment of used cars in a sub-scale business.

*shareholder rant ends*

US CPI comes in above expectations

As TreasuryONE highlighted, the PPI print gave us a sign that inflation is still running hot. The market expectation was exceeded with a CPI figure of 8.2% year-on-year. The market is now fully pricing in a 75bps hike in November, with a 50% chance for another 50bps hike in December. Volatility after the print was exceptional, with the rand losing nearly 27 cents immediately after the release and then settling back towards the R18.30s.

The recording of this week's TreasuryONE webinar is now available. If you missed the event or if you just want a recap, then be sure to watch the recording here>>>

DealMakers

It's Friday, which means DealMakers is here with great weekly summaries of the deals in the market, like this one on South African M&A activity. There's also a piece on legal considerations related to electronic meetings, written by a team at W ebber Wentzel.

Podcasts: building businesses and buying shares

There are two great podcasts to ease you into the weekend:

Jonathan Kropf of Velocity Group joined me on the bizval podcast to talk about building, selling and investing in tech businesses
In Episode 97 of Magic Markets, Mohammed Nalla and I talked about common mistakes made in the market (including by us!)

With that, I wish you a great weekend!

Ghost Bites (Afrimat | Aveng | Grindrod | Karooooo | RCL Foods)

Afrimat sees a drop in profitability. Aveng looks increasingly interesting. Grindrod jumps after a trading update. Karooooo releases solid Q2 numbers. RCL Foods wants to unwind its B-BBEE deal.

TreasuryONE webinar: Inflation, recession and the US dollar

In the latest TreasuryONE webinar, Wichard Cilliers and Andre Botha unpack the macroeconomic landscape and answer questions from attendees at the end.

Who's doing what this week in the South African M&A space?

Weekly summary of Merger & Acquisition activity by South African companies

Weekly corporate finance activity by SA exchange-listed companies

Weekly summary of corporate finance activity by South African exchange listed companies

Ghost Global (US Banks | GM | Porsche | Samsung)

US banks will report numbers against a backdrop of recessionary risks. General Motors has dethroned Toyota in the US. Porsche is the fifth most valuable company in Germany. Samsung has slumped on falling smartphone demand.

Thorts: Legal considerations relating to electronic meetings

It is important to preserve shareholders' rights in virtual AGMs, and to allow them to hold the Board to account in a reasonable and effective manner.

Who's doing what in the African M&A space?

Weekly summary of all Merger & Acquisition activity from across Africa (excluding South Africa)

The bizval podcast: Buying and selling tech companies with Jonathan Kropf

Jonathan Kropf is the founder and CEO of Velocity Group. He knows a thing or two about building, buying and selling tech companies. Come and learn with us.

Listen Now

Magic Markets Ep97: Market Mistakes we all Make

I'm so proud of this episode. We talked about some of the common mistakes that everyone makes in the market (including us). There's something to learn in here for everyone.

Listen Now

EasyEquities is a product of First World Trader (Pty) Ltd t/a EasyEquities which is an authorized financial services provider (FSP no.2225880) and a registered credit provider (NCRCP12294).

EasyProperties is a juristic representative of the First World Trader (PTY) Ltd t/a EasyEquities which is an authorised financial services provider (FSP) number 22588.

EasyEquities does not act as an FSP when allowing you to buy and sell the EC10 bundle as well as any other cryptocurrencies.

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.