Articles: -
Ghost Bites: Capitec is growing in the mid-teens and the market loves it, but isn't that already priced in? Sasol gets even worse. There's a flurry of mining updates from Anglo American, Amplats, Kumba and Orion. Also check out Ascendis and Trustco. Read Ghost Bites, with thanks to Fedgroup. -
Dominique Olivier: Perspectives on the quartz crisis in Switzerland in the 1970s and how industries are disrupted. Read it here>>> -
Satrix: Year-to-date performance across asset classes, highlighting themes like AI and gold. Read it here>>> -
Fedgroup: Does incorporating alternatives into your portfolio make sense? Get their views in this entertaining article>>>
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Podcasts: -
Brand new Ghost Wrap: the news and my views on Sirius Real Estate, Afrimat, Oceana and PSG Financial Services, delivered in five minutes and with thanks to Mazars. Listen to it here>>>
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Magic Markets: Strategic trends and recent performance at Nike and Foot Locker, brought to you by Future Forex. Listen to it here>>> -
Investec Structured Products: The Global Accelerator offers 100% capital protection in dollars at maturity after five years, while giving exposure to global equity indices. Japie Lubbe joined me in this podcast>>> -
Investec podcast The Current: Interested in investment opportunities stemming from South Africa's energy transition? Listen to Iman Rappetti in conversation with Barry Shamley, Zane Bezuidenhout, Boipelo Rabothata and Campbell Perry in Episode 4 of The Current at this link>>>
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Events: -
Unlock the Stock: Astoria Investments joins the platform on Thursday 25th April at midday. Engage directly with the management team and ask questions. Attendance is free but you must register here>>> -
bizval webinar: Are you either founding or funding startups? Join bizval on Wednesday 24th April at midday for a webinar featuring international special guest Stefanie Unger, who has deep knowledge of the global startup environment. Attendance is free but you must register here>>>
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Local company news:
Ghost Bites is brought to you by Fedgroup.
Capitec saw a strong rally on the market yesterday after releasing numbers that show how well the group is doing. The funny thing is that if you look over a few years, the juicy operating margin expansion has slowed down. Yes, they are building out infrastructure for growth, but can that earnings growth rate increase from here? The valuation suggests that it must, yet the market continues to celebrate every bit of good news - even the stuff already priced in.
At the other end of the spectrum when it comes to market love, we find Sasol. Local production issues and pressure on international chemical prices continue to create an ugly situation at the company. The market has been dumping the stock.
In mining, there are updates from Anglo American (interesting copper and diamond news in there), Anglo American Platinum, Kumba Iron Ore (prepare to be depressed by Transnet) and Orion Minerals.
Over at Ascendis, shareholders have approved the resolution that paves the way for a delisting. The company has also commented on the TRP investigation. And finally, there's a deal at Trustco to increase the stake in Legal Shield Holdings.
Get the details in Ghost Bites at this link>>>
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LISTEN: The Global Accelerator
(with Japie Lubbe of Investec) |
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The Global Accelerator offers 100% capital protection in dollars at maturity after five years, while giving exposure to global equity indices.
Japie Lubbe of Investec Structured Products joined me on this podcast to talk through the product design and the way it can be used in a portfolio.
Listen to this podcast to find out more. |
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READ: Satrix April Newsletter | An Absolutely Incredible Time We Live In |
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In the April newsletter, Satrix looks at year-to-date performance across asset classes.
The team also highlights the gold and Artificial Intelligence themes in the markets. |
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LISTEN: Cashing in on clean |
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There are so many investment opportunities stemming from South Africa’s energy transition.
In episode 4 of Investec’s The Current, discover how you can get some skin in the clean energy game. Hosted by Iman Rappetti, listen to the discussion here>>> |
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LISTEN: Ghost Wrap
(Sirius Real Estate | Afrimat | Oceana | PSG Financial Services) |
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International business news:
Ready to understand more about risks and opportunities in global stocks? Subscribe to Magic Markets Premium for just R99/month. You'll get a subscribers-only weekly report and podcast on global stocks, covering strategy, financials and technical trading indicators.
Of course, the talk of the town last night was Tesla, the tech company that I have always believed was just a car company that went to private school. With all the price cuts to move stock and a lot of pressure on the share price, I think that the valuation still has plenty of downside risk. Of course, this didn't stop the market from desperately looking for some good news to give the stock a bounce, sending it 13% higher in after-hours trading despite missing estimates on revenue and earnings.
Perhaps the market latched onto the news of more affordable vehicles that would help Tesla fully utilise its current production capacity. Either way, please do tell me again about the premium technology that makes Tesla so special vs. competitors? Price cuts don't sound very premium to me.
Meanwhile, Volvo reported an 8% increase in operating profit in its quarter despite a 2% decrease in revenue. A new all-time sales record was set in March. The combination of higher volumes and lower revenue tells you about the pricing pressure in this sector. Sadly, Tesla bulls tend to forget all about competition. |
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READ: Tick tick boom - perspectives on the quartz crisis
(by Dominique Olivier) |
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Dominique Olivier's latest column takes you through the quartz crisis in the 1970s that led to the creation of Swatch.
Which, by the way, stands for Second Watch and not Swiss Watch. |
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Macroeconomic Update The US dollar retreated yesterday after weaker PMI data. The market is now looking ahead to tomorrow's Q1 GDP number and Friday's personal consumption expenditure data. Over in Japan, the yen is near the weakest levels in 34 years as markets await the Bank of Japan's MPC meeting on Friday.
The rand is consolidating in the R19.00 to R19.25 range, although any surprises in the data releases could change that.
Gold and PGMs are stronger this morning, while base metals have opened flat. Brent Crude is trading marginally higher at $88.58.
Key indicators: USD/ZAR R19.09; US 10-year 4.62%; Gold $2,326; Platinum ZAR R17,497; Brent Crude $88.46
This macroeconomic update is based on TreasuryONE's morning update. |
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