Finbond isn't a company that you'll usually see as the lead story. It has a market cap of R450 million, which is a whole lot higher than it used to be thanks to the share price doubling this year. This financial services group sometimes does weird stuff, like recent acquisitions in the Eastern Cape that looked very expensive to me. They also pull off masterstrokes, like the deal to deepen exposure to the US market at a price that looks almost too good to be true. There's never a dull moment there, that's for sure.

Speaking of dull moments, African Rainbow Capital could only manage an 8.5% increase in INAV per share in the past 12 months. That didn't stop the management team from making a fortune (again), as the hurdle rate for performance participation is still far too low in my view. At least they are sitting on some very exciting assets, like TymeBank.

In other news, macroeconomic headwinds have finally caught up to Gemfields at the latest emeralds auction. Metrofile is struggling and Oceana seems to have had a choppy five months, as is often the case for fishing groups. Spear REIT has raised equity to help fund the Emira deal. Life Healthcare delivered a presentation on its exciting international business. Finally, Kibo Energy is the subject of a reverse takeover! 

Get it all in Ghost Bites, your one-click SENS summary at this link>>>
 
For those who enjoy a quick listen on some of the most interesting local stories, there's a new Ghost Wrap podcast episode thanks to Forvis Mazars. I covered the Sibanye-Stillwater mini-recovery, the Truworths share price performance, Finbond's deal in the US and the uncertainty around Barloworld. Get it here>>>

Spring is in the air - apparently. I see the flowers in Cape Town but the weather isn't quite playing ball yet. Regardless, it's time for some decluttering after a long, cold winter. That applies to your portfolio as well, as discussed in this piece by Satrix that also includes year-to-date performance across various asset classes.

The most recent episode of The Trader's Handbook deals with trading signals, market trends and strategic indicators. It's packed with insights for those who are interested in trading. You can listen to it here. To further increase your knowledge, you can also read this piece on the Average True Range indicator. This is a way to measure the dgree of price movement, making it a key component in risk management strategies for traders. You'll find the article here.

Have a great day!

PS: don't forget to register to attend Unlock the Stock this Thursday if you are interested in learning more about Lesaka and the fintech platform they are building. This is a terrific opportunity to engage directly with management and pose your questions. Attendance is free! Register here>>>

The antitrust trial in the US for the proposed acquisition of Capri by Tapestry has been pretty interesting. Those names might not mean much to you, but have you heard of Michael Kors handbags? What about Versace? Jimmy Choo? I thought so.

If the deal goes ahead, there will be six major fashion brands under one company. Regulators are worried about this from a competition perspective. I find that mildly hilarious, as these products are popular because they are expensive. Still, the good folk at the Federal Trade Commission want to make sure that people aren't more ripped off for luxury goods than they already are.

As you can imagine, the testimony about the sector has been interesting. Michael Kors himself is quoted this week as saying that his brand has reached the point of brand fatigue. He also said that in the celebrity era, it's even harder to compete, as Taylor Swift carrying a relative unknown handbag (an actual example) can take that brand into the stratosphere.

It's tough at the top.

If you want to learn more about the Veblen Effect, Dominique Olivier wrote an excellent recent piece on the topic. 

Our latest research in Magic Markets Premium is on Dollar Tree. The company is in trouble, with my partner in Magic Markets, Mohammed Nalla, describing it to me as "one of the ugliest charts you'll see" - and the reasons why are a great learning opportunity for our subscribers this week.

Global equity markets have continued to edge higher ahead of a busy week in terms of central bank activity. The Bank of England, Federal Reserve, South African Reserve Bank and Bank of Japan all conclude monetary policy meetings this week, and will announce changes (if any) to key lending rates.

The JSE All-Share index is in turn expected to open marginally higher line with its international peers.

The dollar remains weak with the probability of a 50 basis point cut to US lending rates now at 67%, as implied by Fed Funds Futures. The rand has as a result firmed against the softer greenback.

Gold continues to hover around all-time high territory on the prospect of an outsized rate cut in the US.

Oil prices have rebounded further on US production concerns in the wake of Hurricane Francine.

Traders will want to keep an eye out for US retail sales data out this afternoon.

Key Indicators: USD/ZAR R17.59/$ | US 10yr 3.63% | Gold $2,581/oz | Platinum $990/oz | Brent Crude $72.71

The macroeconomic update is based on IG's morning call update