Good morning Voornaam,
I do apologise for Ghost Mail being so late yesterday. I'm hoping that the tech gremlins have now been banished from the system, never to return.
The good news is that I have some new toys to play with, so there's a new format for Ghost Mail that I think you'll enjoy. In fact, it looks completely different to anything I've ever sent you before.
Feedback is critical to me. If you love it, or hate it for that matter, I need to hear about it. Please send through your comments!
Ghost Wrap podcast
(Capital Appreciation vs. PBT Group | Mustek | Bidvest | Hyprop vs. Growthpoint | Astral Foods + Quantum Foods | Trellidor | Southern Sun vs. City Lodge) |
|---|
|
|---|
| | Kick your day off with the Ghost Wrap podcast. This bumper episode is 7 minutes long and deals with local tech small caps, property funds, chicken groups, hospitality businesses and even a couple of industrials. Brought to you by Mazars, Ghost Wrap is the smart way to stay updated. |
|---|
|
|---|
Software-as-a-service changed the world of technology. Salesforce pioneered the model. A company like Adobe adopted it with great success. Are these companies ready for Artificial Intelligence? Which one would we choose? Find out in Episode 143 of Magic Markets, brought to you by B2IT. |
|---|
| |
|---|
Are dividends always a good thing? What do they tell us about capital allocation strategy and growth prospects? Find out in Ghost Stories with Nico Katzke of Satrix. |
|---|
| Building a business is hard. Huenu Solsona believes in building enjoyable businesses that make it easier, an approach she shared with me in the bizval podcast. |
|---|
|
|---|
Harmony Gold is now part of the Unlock the Stock story, sharing insights into the recent performance and plans for the future. For those stock market junkies who love doing their own research, this is the perfect platform. Unlock the Stock is brought to you by A2X. |
|---|
| |
|---|
TreasuryONE Market Update A firm dollar was the story of the day yesterday, with US Treasury Yields dipping slightly at the longer end of the curve but short-term yields continuing to rise. The 2-year yield is currently 5.138%. US equity markets came under pressure after lower than expected Consumer Confidence numbers and poor Home Sales numbers.
The rand was negatively affected by the strong dollar, but the broader range of R18.70 to R19.20 is still in play. |
|---|
|
|---|
| | The lessons dished out by the markets this year have been all about how companies cope in inflationary conditions. The winners have one thing in common: pricing power. |
|---|
|
|---|
Ghost Bites - local company news |
|---|
|
|---|
| | Get all the details you need on AngloGold, Ascendis, Bytes, Equites, Grindrod Shipping, Investec, Nampak and Vukile. |
|---|
|
|---|
Nampak has been given a new lease on life by the market, with a very successful R1 billion capital raise. In fact, there was so much demand for the shares (admittedly at a deep discount to the market price) that only one of the underwriters got an allocation. The other underwriters didn't get anything and there was obviously nothing left for excess applications.
Will the future for Nampak be brighter than the past few years? With a respected management team in place and a much stronger balance sheet, we can only hope so.
Other news on the market yesterday included AngloGold's historic move of its primary listing to the New York Stock Exchange, Ascendis narrowing its headline loss, Bytes releasing strong numbers in the UK, Equites selling a logistics property in the UK and bringing the capital home, Grindrod Shipping acquiring ship management companies from its controlling shareholder and Investec fixing a disclosure whoopsie.
There was also a pre-close update from Vukile, showing just how different property funds really are. We've recently seen a negative outlook from Growthpoint and Hyprop, yet here is Vukile with an outlook that shows growth in the distribution.
This is why the share price performance looks like this over the past 12 months:  Share price charts are always interesting, but operational charts are even better. Vukile released a pre-close update and I loved the bubble chart they included. If you've never worked with consultants or finance geeks and been exposed to a bubble chart, it's a great way to plot data based on two variables and the relative size of each category.
In this chart, the size of the bubble represents the size of the retail category. A bigger bubble is more important. The y-axis is turnover growth and the x-axis is trading density (sales per sqm) growth.
The dream is to see the large bubbles in the top right corner. The bottom left corner isn't a happy space to be in, as it means turnover and trading density are both trending lower. |
|---|
|
|---|
As you can see, things are not great in consumer discretionary categories. Look at Fashion (the largest bubble) sitting on basically zero growth. Also take note of how incredible Health and Beauty is as a retail category. It offers great growth, high margins and one of the easiest supply chains as the stuff doesn't perish on the shelf.
This is why Clicks and Dis-Chem are given a premium valuation by the market.  |
|---|
|
|---|
You should expect us in your inbox Monday – Friday. If you don’t receive an email, please check your spam, or junk folder and “move us” into your primary inbox to ensure you get it each morning.
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. |
|---|
|
|---|
|
|
