The growth at Karooooo this year is a great example of why patience is often rewarded in the market, provided you understand why something is taking longer than it should. I made the mistake of reducing my Karooooo stake when things got dicey in the latter stages of the pandemic. I'm really glad I kept a decent piece of it though, as the share price has been heading firmly to the top right of the page this year and with good reason based on underlying growth.
Bytes Technology is a rand hedge that has been hurt by a combination of rand strength this year, a demanding valuation in recent years and of course the crazy situation around undisclosed trades by the ex-CEO. Underneath all this noise, there's a company achieving mid-teen growth rates in hard currency, albeit in a highly competitive industry in the UK.
Along with these updates, I covered AngloGold's acquisition of Centamin achieving a major regulatory approval, British American Tobacco gearing up for a capital markets day and Tsogo Sun buying a property from HCI. Of course, all the Nibbles are there too! Get it all in Ghost Bites at this link>>>
Don't make the mistake of thinking that ETFs are boring investments. For me, they are the building blocks of any sensible equity portfolio. They can also get pretty interesting, especially once you start digging into factor investing. Nico Katzke of Satrix joined me for an in-depth discussion on the theory behind factor investing and some of the practical elements. You can listen to the podcast or enjoy the transcript at this link>>>
For the budding traders among you, be sure to listen to the latest episode of The Trader's Handbook, my podcast series with IG Markets South Africa. In Episode 8, we talked about index trading strategies and how these can be more efficient for active traders. Of course, we covered some technical analysis tools as well, along with various other insights. Enjoy it here>>>
Don't forget to register for Calgro M3 on Unlock the Stock on Thursday - the last time that the outgoing management team will be presenting on the platform.
Have a great day! |
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FEATURED: The Investec Rand India Accelerator |
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| | The Investec Rand India Accelerator offers geared exposure to growth in the iShares MSCI India ETF over the 3.6-year term. The ETF tracks the large and midcap Indian market, covering 85% of the India equity universe. Listed on the JSE, it offers 1.5x geared exposure to the ETF capped at 40%, for a maximum return of 60% in Rands. In addition, the Accelerator provides a high degree of capital protection.
To explain the opportunities and risks of this product, Brian McMillan of Investec Structured Products joined me on this podcast. |
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FEATURED: The Trader's Handbook Ep 8 |
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| | IG Markets Episode 8: In Episode 8 of The Trader’s Handbook, learn why indices are an attractive option for traders, providing broad market exposure, lower risk compared to single stocks and significant cost advantages. We also discussed practical tips on technical indicators such as RSI and stochastic oscillators. Enjoy it here>>> |
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FEATURED: Does factor investing work? |
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Satrix: Factor investing takes ETFs to the next level. Instead of tracking a stock index (like the JSE Top 40), these ETFs have a set of rules based on investment fundamentals like valuation multiples or even levels of debt. The sky is the limit with the creativity that goes into these factors, but do they actually work?
To unpack these types of ETFs and the thinking behind them, Nico Katzke of Satrix joined me for an insightful discussion. Find it here>>> |
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What does a tyre business know about fine dining? |
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Dominique Olivier: The Michelin Guide is like the Oscars of the restaurant world. Chefs dream of them, diners flock to them, and some restaurants even wish they could send them back. But how did we end up in a world where a tyre company’s opinion of your dinner is worth so much?. Find
out here>>> |
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Key market themes locally and abroad with Satrix |
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Satrix: There are many sources of risk that might concern investors currently – making the case for diversification as strong today as it ever was. Satrix highlights some of these risks and the opportunities they present. Find it here>>> |
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Global Mobility - Common Mistakes by Employers and Employees |
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| | Ghost Stories podcast: Elzahne Henn of Forvis Mazars in South Africa sheds light on the common mistakes and misconceptions related to cross-border employment. These insights are valuable for employers and employees alike. Enjoy it here>>> |
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Ghost Bites - local company news: |
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| | Ghost Bites: The latest on AngloGold, British American Tobacco, Karooooo, Tsogo Sun and numerous Nibbles in Ghost Bites here>>> |
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Unlock the Stock: Lesaka Technologies |
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Unlock the Stock: Watch the recording of the management presentation by the Lesaka Technologies team, along with the vibrant Q&A session on Unlock the Stock. Find it here>>> |
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Investec podcast: responsible investing |
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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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International Business Snippet: |
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Banking results season is underway in the US market. Bank of America beat profit and revenue expectations thanks to trading results (e.g. fixed income and equity trading revenue) that were stronger than expected. Net income fell 12% though, driven by provisions for loans and pressure on expenses. With investment banking fees up by 18%, operating in the world's deepest capital market remains appealing.
Of course, nobody does it better than Goldman Sachs when it comes to investment banking revenue, up by 20% and ahead of estimates. It wasn't all good news though, with fixed income trading revenue under pressure. Overall, Goldmans beat earnings and revenue expectations. The share price is up 34.5% this year and 153% over five years!
Our latest research in Magic Markets Premium is on Nike. We've been bearish on that stock since the first time we covered it in Magic Markets Premium and time has proven that approach to be correct. How do we feel now? You'll find out in the latest report for our subscribers this week. |
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Magic Markets: The China Effect |
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| | Magic Markets: It's not easy to understand the stimulus that we are now seeing in China. The impact on equity portfolios is substantial, as China is such a huge market globally.
Justine Brophy of AnBro joined us to make more sense of what's going on there. Get it here>>> |
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IG Markets Morning Call: daily macroeconomic update |
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Tech and energy led US markets lower overnight, with European indices following suit. Chip makers led the tech sector weakness after a soft forecast presented by ASML, while lower oil prices weighed on the energy sector. Disappointing results from luxury goods retailer LVMH sank the sector in Europe.
Asian markets are trading mixed as they continue to digest the weekend’s fiscal stimulus announcement from Chinese authorities.
On balance, we are expecting a flat open for our local bourse the JSE All-Share Index after having already priced in much of yesterday’s weakness.
The dollar has held near short-term highs, although yields have drifted slightly lower. The rand in turn remains at its softest levels in a week.
Oil prices have continued to decline following reports that Israel will not launch a counter attack on Iran and as global demand sentiment wanes.
Gold has ticked higher despite a firm dollar.
Traders will want to keep a lookout for local retail sales data today.
Key Indicators: USD/ZAR R17.60/$ | US 10yr 4.03% | Gold $2,668/oz | Platinum $996/oz | Brent Crude $74.25
The macroeconomic update is based on the morning call update by IG Markets |
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