Yesterday was a busy day, not least of all in the Anglo stable. The big news is that AngloGold is looking to buy Egypt's largest and first modern gold mine in a deal that will see the current Egyptian shareholders holding 16.4% in the enlarged AngloGold group - plus they get cash on top. It's a large and interesting transaction. The other, far less inspiring news from Anglo American is that the mothership is looking to place a stake of around 5% in Anglo American Platinum in the institutional market. This is a precursor to unbundling what is currently a 78.56% stake in Amplats. It will be interesting to see how much investor interest there is (and at what discount to the current price).
It was also a solid day for earnings, particularly for those who are looking for reasons to feel good about South Africa right now. Attacq achieved 19% growth in the full year dividend. Bowler Metcalf grew HEPS by 57%. Libstar managed normalised HEPS growth of 11.4% despite negative sales volumes. WBHO grew HEPS from continuing operations by 18.7%. This is good stuff! Of course, there's always that one kid in the class, with Old Mutual releasing numbers that represent substantial underperformance vs. sector peers. The numbers are likely to be in the green, but just aren't strong enough. With the Old Mutual share price roughly flat in the past 12 months vs. Sanlam up 25%, the market seemed to know it was coming.
All these stories plus news at Caxton and Texton are covered in detail in Ghost Bites, your one-click SENS summary at this link>>>
With all these single stock opportunities on the market, how do you find the time to figure out what to add to your portfolio or sell? And how do ETFs fit into this? In the latest Ghost Stories podcast, Siyabulela Nomoyi of Satrix joined me to discuss this topic, delivering great insights into how to research ETFs. He also asked me about single stock research, so you get a great overview of both areas in one podcast. Find it here>>>
We are just a coulple of days away from the next event, so don't forget to register for free to attend Unlock the Stock on Thursday with CA Sales Holdings.
Have a great day!
PS: you like the Springboks, don't you? Well, if you refer five friends to Ghost Mail, you stand a chance to win 2x tickets to the Argentina game later this month! Made possible by my Ghost Mail partners, you can find the referral link here. |
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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: A responsible investing roadmap |
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Investec Wealth & Investment International has launched a comprehensive guidebook on responsible investing. In the latest episode of the No Ordinary Wednesday, Jeremy Maggs speaks to the authors, Boipelo Rabothata and Maxine Gray. Enjoy it here>>> |
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FEATURED: Mastering your portfolio with ETFs and single stocks |
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| | Ghost Stories: Doing your own research is a great concept and all, but how do you actually do it for both ETFs and single stocks? In this podcast with Siyabulela Nomoyi of Satrix, we dug into this topic. Find it here>>> |
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FEATURED: Focus on the future - SARB's annual report on organisational resilience |
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Forvis Mazars: Within the banking sector, organisational resilience is becoming increasingly critical in South Africa, as highlighted in the SARB’s Annual Report. Get the Forvis Mazars team's views and client experiences in this article. |
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Add these to your playlist: |
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- Ghost Wrap: In this fast-paced podcast, I covered CA Sales Holdings, RCL Foods + Rainbow Chicken, Motus and Bidvest. Made possible by the support of Forvis Mazars, you can find it here>>>
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- Magic Markets: Comparing India to China is fascinating at the moment, with the former going from strength to strength and the latter losing its shine - for now, at least. To understand some of the structural differences between these critical emerging markets, listen to this show>>>
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Ghost Bites - local company news: |
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Ghost Bites: The latest on Anglo American, AngloGold, Anglo American Platinum, Attacq, Bowler Metcalf, Caxton, Libstar, Old Mutual, Texton, Vukile and WBHO along with various Little Bites in Ghost Bites here>>> |
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International Business Snippet: |
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Brian Niccol is getting paid the seriously big bucks to try and fix Starbucks. He's written an open letter setting out his immediate priorities, with the very first line noting that he's a long-time customer of the business. Naturally, the letter is full of the corporate gumph that you would expect, although a lot of that stuff is genuinely important in driving corporate culture.
The interesting thing is that they will start by trying to fix the US and then the international businesses. That makes a lot of sense to me. The other focus seems to be on the coffee itself, in terms of both quality and personalisation. It sounds obvious, but it's amazing how often large companies lose their DNA. You can read the letter here.
In banking, JPMorgan took a 5% knock after comments made by JPMorgan President and COO Daniel Pinto that the current expectations for income and expenses in 2025 are too optimistic. This is why companies are usually very strict on the messaging given to the market, as sending out a bearish message in an uncontrolled and arguably unofficial fashion doesn't do any good for the market.
Our latest research in Magic Markets Premium is on Dollar Tree, a retailer in disarray. My partner in Magic Markets, Mohammed Nalla, has described it to me as "one of the ugliest charts you'll see" - and the reasons why will be a great learning opportunity for our subscribers this week. |
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IG Morning Call: daily macroeconomic update |
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The JSE All-Share Index looks set to open marginally lower this morning in line with US and European markets which are cautioning ahead of US inflation data today and the ECB monetary policy meeting tomorrow. The US presidential debate has also seen markets digesting an improved likelihood of Kamala Harris winning the upcoming election according to polling data.
The dollar is trading slightly weaker to support gains in the rand and commodity prices.
Oil prices remain depressed on the back of demand concerns stemming from major economies. The commodity has however managed to rebound off three-year lows this morning, albeit marginally so.
Key Indicators: USD/ZAR R17.90/$ | US 10yr 3.61% | Gold $2,520/oz | Platinum $949/oz | Brent Crude $69.75
The macroeconomic update is based on IG's morning call update |
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