Articles: -
Ghost Bites: Netcare is achieving operating leverage at least, but the stats tell us some concerning things about society. Mondi's Q1 was in line with expectations. MTN Nigeria has a plan to fix its business. Read Ghost Bites>>> -
Investec: The demographic shift in the world has major impacts on retirement planning. How can structured products help? Read it here>>> -
Dominique Olivier: Speaking of the demographic shift, how much can tiny pineapples tell us about our future? More than you think. Read it here>>> -
Satrix: The MSCI ACWI helps investors capture global equity opportunities, with around 60% of exposure in the US. Read it here>>> -
Fedgroup: A tax-free savings account strategy is critical in any wealth creation journey. Fedgroup reinforces this concept strongly in this article>>>
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Podcasts: -
Ghost Wrap: the news and my views on MTN Nigeria, Datatec, Capital & Regional, Harmony Gold and the poultry duo of Astral Foods + Quantum Foods, brought to you by Mazars. Listen to it here>>>
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Bond ETFs: Improve your understanding of bond ETFs and how they work in a portfolio. Siyabulela Nomoyi of Satrix joined me on a Ghost Stories podcast to unpack this type of investment. Listen to it here>>> -
Magic Markets: If you import or export, or move money offshore in your personal capacity, then pay attention. Future Forex joined us on Magic Markets to explain their FinTech-flavoured offering and how it makes international money transfers simpler and cheaper. 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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LISTEN: Ghost Wrap
(MTN Nigeria | Datatec | Capital & Regional | Harmony Gold | Astral Foods + Quantum Foods) |
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Local company news:
Netcare might be reporting positive operating leverage (margins growing faster than revenue), but the return on capital metrics remain a concern for me and I'm still not convinced that the sector is as defensive as people think it is. Also, the trend in both maternity cases and mental health days is concerning for reasons that go far beyond your portfolio.
Mondi's first quarter of the new financial year was in line with management expectations, driven by higher sales volumes before pricing increases. In Q2, the price increases should have a positive impact. As with so many other companies though, there's a challenge thanks to an African currency.
Speaking of pain from currencies, MTN Nigeria has a lot of work to do. They've presented a plan to shareholders to help fix the balance sheet and they will need to execute on it quite quickly I think.
Get the details in Ghost Bites at this link>>>
In case you missed it, don't forget to watch Bell Equipment on Unlock the Stock. With the dividend gone for now, the focus was on how the company will allocate capital and grow going forward. You can watch it here>>>
The next Unlock the Stock event is CA Sales Holdings, scheduled for Thursday 9 May at midday. This company has been a superstar on the local market and I highly recommend putting this in your diaries so you can engage with the management team. Attendance is free, but you must register here>>>
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READ AND LISTEN: The Global Accelerator |
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For Investec's views on how structured products can play a role in the context of shifting demographics and possibly delayed retirements, read this great article>>>
To learn about the Global Accelerator, which offers 100% capital protection in dollars at maturity after five years, while giving exposure to global equity indices, listen to this podcast with Japie Lubbe of Investec Structured Products. |
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READ: Satrix MSCI ACWI - Capturing Opportunities |
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In this article, Satrix puts the spotlight on the MSCI All Country World Index ETF, which gives broad global market exposure.
Over 60% exposure is to the US, with China as the next highest. |
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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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International business news:
Berkshire Hathaway's annual meeting has been described as "Woodstock for capitalists" - and they aren't talking about Woodstock in Cape Town. It really is a festival for finance geeks, with many fund managers seeing it as a rite of passage to attend the event. With the passing of Charlie Munger last year, Warren Buffett had to face the event without his longtime partner.
Aside from commenting that Greg Abel would be making the investment decisions when Buffett goes off to visit his buddy Munger once more, Buffett made tons of other statements that the market will dissect. One of them was that Apple is an even better business than American Express and Coca-Cola, despite the recent slowdown in revenue. He said it is extremely likely that Apple will remain the largest holder. Apple CEO Tim Cook was in attendance at the meeting, so no pressure!
If you're looking for a pretty good summary of the meeting, this CNBC article is very helpful.
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. |
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READ: What tiny pineapples can tell us about our future
(by Dominique Olivier) |
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The Precious Honeyglow, roughly half the size and weight of a full-size pineapple, tells us a whole lot about changing demographics in the world and what this means for consumer trends.
Dominique Olivier unpacks it in this great article>>> |
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Macroeconomic Update Weak payrolls data is still weighing on the US dollar, with non-farm payrolls having come in at 175k vs. market estimates of 240k. The market will closely watch Fed speeches this week for any changes to the Fed's hawkish narrative.
In geopolitical news, Hamas recalled its officials from the Cairo peace talks, dampening hopes of a successful outcome to those talks. This gave support to both gold and the oil price.
Key indicators: USD/ZAR R18.52; US 10-year 4.50%; Gold $2,310; Platinum ZAR R17,650; Brent Crude $83.19
This macroeconomic update is based on TreasuryONE's morning update. |
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