| Good morning Voornaam, Kids are back at school. Traffic has returned to our roads. Routine is part of our lives once more. Yup, we've reached that stage in January where it feels like your last salary was received in a different era, not just the previous month. If you find yourself in that position this month, then take the steps to make sure it doesn't happen again in January 2026. Luckily, you're reading the right publication to help with that discipline and mindset.
Alphamin certainly isn't dealing with Janu-worry, having doubled its EBITDA in the past year. Production and sales numbers jumped, tin prices moved higher and costs were kept under control. Bliss!
In other mining news, Merafe released an update that was light on details and also light on ferrochrome. Production dipped by 6.7% in the last quarter and full-year production increased just 0.3%. Hmmm.
In financial services, Ninety One is enjoying an increase in AUM. This is the key metric for asset management firms and the basis on which they earn fees. In Ghost Bites, I've gone into detail on why this is the case and how different strategies in the market lead to different AUM outcomes and thus share price returns for finnacial services businesses.
To get those details and all the rest of the insights, read Ghost Bites>>>
Looking for some inspiration for marketing strategies in your business? IKEA is a name that you probably already know, famous for its affordable furniture. But what you might not know is that the company sells more meatballs than anything else! Welcome to a strategy built around hungry customers. Dominique Olivier tells the story here>>>
In the latest Magic Markets episode, we talk about something in the markets that tends to capture the imagination of investors: retail turnarounds. Pick n Pay is just one example on the local market, with many more examples internationally (like Walgreens which we covered in Magic Markets Premium this week for our subscribers). In this show, we spoke through some of the key macroeconomic indicators that help in assessing the likelihood of success of turnarounds, before diving into the typical milestones of a turnaround and when the risk-reward balance seems to be at its most appealing. Enjoy it here>>>
And remember, for the qualifying entrepreneurs among you, MIC Khulisani Ventures is looking to provide capital to businesses that are ready to aggressively grow. Applications need to be in by the end of January, with capital expected to flow by March. To fully understand the opportunity, be sure to listen to this podcast>>>
Have a great start to your week! |
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| SATRIX: Low-risk high-reward - the low-volatility anomaly |
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| | | Does taking higher risk always lead to higher returns? Or is there something to be said for seeking out lower volatility equity exposure, especially if it can generate similar overall returns?
Nico Katzke of Satrix digs into the numbers to bring you this insightful piece on portfolio and risk strategy.
Enjoy it here>>> |
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| Ghost Wrap - five insights from December |
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| Ghost Wrap: There were some great stories in December that are well worth keeping in mind in January. Italtile's share price needs a careful watch. Prosus is making major acquisitions again. Renergen is still dealing with teething issues - and a legal dispute as well. Metair is getting very little out of its Turkish business. Finally, will Bell Equipment shareholders kick themselves? I cover these topics in Ghost Wrap, brought to you by Forvis Mazars and available here>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Alphamin's EBITDA doubled in FY24. Merafe had a disappointing final quarter. Ninety One's AUM is heading in the right direction. Get the details in Ghost Bites. |
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| DOMINIQUE OLIVIER - The wisdom of the meatball |
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| The best salesperson in Swedish business IKEA’s history isn’t Sven or Astrid or even Nils - it’s the meatball! Since 1985, flatpack-furniture giant IKEA has sold more than a billion of its trademark Swedish meatballs every year. But how did a furniture company come to rely on meatballs to sell couches? The answer lies in consumer psychology. Dominique Olivier explains>>> |
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| Unlock the Stock - KAL Group |
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| | | Unlock the Stock: KAL Group joined the platform for the first time to talk about the performance and strategic focus areas in the broader agriculture industry. Enjoy the presentation and Q&A here>>> |
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| MAGAnomics: Trump and the global economy |
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| International Business Snippet: |
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| Today is President Trump's first day in office. What will that hold? Honestly, who knows? The weekend saw the launch of his first cryptocurrency ($TRUMP), so anything is possible. We live in a world where $TRUMP and $FARTCOIN are high performing "assets" - so if you're wondering why casinos are struggling for demand, perhaps it's because gamblers have been redirecting their desires elsewhere, like to cryptocurrencies?
$FARTCOIN is probably just hot air, but the same can't be said for many of the companies reporting earnings this week. Netflix is one of them, so you can expect that to be the talk of the town in the markets. The share price is up 77% in the past year, having won the streaming wars and pushed through with the content strategy. On a P/E of 49x and all the way back up to a price/sales multiple of 9.8x (dangerously close to where the last set of troubles began), they need to put out strong numbers.
Our latest research in Magic Markets Premium is on Walgreens, a US pharmacy retailer that finds itself at a very appealing point in its turnaround. If the valuations of the leading tech companies make you feel dizzy, then Walgreens would be a welcome palate cleanser.
If you're ready to give your US market knowledge a proper boost, then subscribe today with no minimum monthly commitment. It's worth it. |
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| Magic Markets: The year ahead - buckle up! |
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| | | Magic Markets: To kick off the year, we couldn’t resist talking about the major themes that have carried over from 2024 into a new calendar year. US – China relations, interest rates, frothiness in equity valuations – it’s all in here, along with a sobering discussion that gives context to the JSE performance last year vs. global alternatives. Find out more here>>> |
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| US equity and bond markets are closed today on account of Martin Luther King day, although futures markets will continue to trade while US president elect Donald Trump takes oath at office.
European futures are hovering mostly around short-term highs and Asian equity markets are notably firmer this morning. Gains in the Hang Seng and Shanghai Composite have been led by the tech sector following a call between US president Trump and China’s premier Xi Jinping which seems to have eased some trade tensions, at least in the near term.
Our local bourse the JSE All-Share Index is expected to open in positive territory this morning.
The dollar has softened, with improvement in global risk appetite which is aiding some short-term strength in the rand.
Oil prices have declined marginally, while gold has continued to gain, supported by the weaker dollar.
There is no economic data scheduled for today, although traders will watch out for this evening's inauguration of US president Donald Trump.
Key Indicators: USD/ZAR R18.70/$ | US 10yr 4.62% | Gold $2,707/oz | Platinum $943/oz | Brent Crude $79.80
As often as practically possible, insights from the IG Markets morning macro update by Shaun Murison will be featured here. Where this isn't possible, only indicators will be provided. If you want to learn more about trading, refer back to The Trader's Handbook, a podcast series that takes you through many of the important principles in trading. |
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