Good morning Voornaam,
Did you see the crazy videos of the hail storm in Joburg? For insurance companies, these types of major loss events have been the story of doing business in South Africa. If it's not a riot or a flood, it's a property fire or the sky throwing large pieces of ice at us.
In Ghost Bites this morning, you'll find an interesting update from Santam on what life is like as a short-term insurer in South Africa.
Speaking of short, you need just a few minutes to get through a Ghost Wrap podcast each week. The latest episode covers Bell Equipment, MTN, AVI, Truworths and De Beers in just five minutes of your time, thanks to Mazars.
The olive-oil-and-gangsters piece from Dominique Olivier has been generating a lot of attention. If you haven't read it yet, then make amends at this link.
Remember to register for the double-header of Unlock the Stock on Thursday. You can attend the Karooooo event at midday and/or the TWK event soon thereafter at 13:15. Registration for each event is separate. Unlock the Stock is brought to you by A2X and you can register to attend here>>>
Also check out the opportunity to win a bizval bootcamp (a detailed session to help you prepare to sell your business) if you do a free bizval express valuation at this link. I am very proud of what we are busy with in bizval, as investment banking quality skills are being delivered to SME founders at prices they can actually afford.
Enjoy your Ghost Mail!
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BRAND NEW: Magic Markets podcast |
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In Episode 150 of Magic Markets, we revisited diabetes management company Dexcom with the help of Justine Brophy from AnBro Capital.
This is a great example of looking through the share price volatility to understand how the underlying business is performing. It's always important to keep testing the financial and strategic thesis for your positions.
This isn't just about Dexcom. It's about sharpening your approach. This podcast is brought to you by AnBro. |
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BRAND NEW:
Liquid gold: why gangsters choose olives over cocaine
(by Dominique Olivier) |
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| | Miniature cameras hidden in tie pins. Bribery money counted under tables. Swiss bank accounts, Turkish tankers and Caribbean shell companies.
No, we’re not talking about the cocaine trade. We’re talking about the Italian agromafia. |
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BRAND NEW: Ghost Wrap podcast
(Bell Equipment | MTN | AVI | Truworths | De Beers) |
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| | The latest Ghost Wrap podcast needs just a few minutes of your time to get you up to date on five companies across a variety of sectors. Ghost Wrap is brought to you by Mazars. |
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Bell Equipment and Calgro M3 returned to the Unlock the Stock platform in a joint session to share insights into the recent numbers and the strategic outlook.
You can watch the recording here, thanks to our partner A2X. |
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LATEST: Ghost Stories podcast with Nico Katzke of Satrix |
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| | Nico Katzke is no stranger to Ghost Stories listeners. There's always so much to learn from him about markets and investing. This time, you also get to enjoy him putting me through my paces in the second half of the show. |
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LATEST: The ETF revolution - views from Satrix |
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Kingsley Williams of Satrix gives us nine reasons why the boom in ETFs makes sense.
In my opinion, every investor should be using ETFs in a portfolio. This is why I'm always grateful to Satrix for their insights in Ghost Mail. |
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DAILY: TreasuryONE Market Update The talk of the town yesterday was the inflation print in the US, which came in lower than expected for October. It printed at 3.2% vs. the 3.3% expectation. This is well down from 3.7% in September. The dollar came under severe pressure after this release and US Treasury Yields tumbled in late afternoon trade.
The reason for this move is that lower inflation than expected drives a belief that we could see rate cuts sooner than previously anticipated. The US 10-year yield is 4.43% this morning. This is great news for equities, by the way.
The rand has also been celebrating this data release, trading at R18.23 this morning. Next week's rate announcement by the SARB should be a non-event after this inflation print, with the MPC even more likely to keep rates unchanged.
So, good news this morning for most of us! |
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| | Get the latest on Barloworld, Bidcorp, Capital Appreciation, Dipula Income Fund, Glencore, Netcare, Novus, Santam, Sibanye, Stor-Age, Trematon and Tsogo Sun to keep you up to date. It's all available with a single click in Ghost Bites. |
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Insurance: not easy Life in South Africa is a little bit wild, to say the least. Even if you manage to dodge the potholes, you might still be smashed (literally) by apocalyptic hailstones. You don't need to rewatch The Day After Tomorrow. You just need to leave your house in this country for that level of action.
Jokes aside, short-term insurance is simply a must-have in this place. There are too many risks. This drives solid premium growth for a company like Santam, but that doesn't necessarily translate into great profits if the pricing of the risk is incorrect. This is where the underwriting margin comes into play.
Another important component of the return for insurance companies is the investment income on the float.
To understand more about how insurance works, you'll find a handy update from Santam in Ghost Bites this morning.
I also want to draw your attention to Glencore's announcement of a deal with Canadian group Teck. There's a prize for perseverance here, as Teck resisted Glencore's advances for quite some time. Money seems to talk eventually, with Glencore taking a 77% stake in Teck's steelmaking coal asset and a couple of other players helping Teck achieve a full exit. The plan at Glencore over the next 24 months is still to work towards a spin-off of the coal and carbon steel businesses into a standalone entity that would no doubt trade at a delicious yield for those who aren't investing with an ESG mandate.
It was a very busy day of news, with earnings coming in from Barloworld, Bidcorp, Capital Appreciation, Dipula Income Fund, Netcare, Novus, Stor-Age, Trematon and Tsogo Sun. Also look out for a battery metals day at Sibanye. There's plenty for you to sink your teeth into in Ghost Bites at this link>>>
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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. |
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