The Bell Equipment deal is dead. Although over half of the voting shareholders said yes to the dress at R53 per share, a special resolution for a scheme of arrangement needs 75% approval. That's because a special resolution is binding on all shareholders, not just those who said yes, so it has a higher approval threshold. Of course, the future will tell us whether the influential minority shareholders are geniuses or simply too greedy.
There were a couple of updates that show us how severe the situation is at our ports. RFG Holdings is the most frustrating one for me, as our fruit exports are taking a knock from poor infrastructure. At Truworths, I can believe that the ports are at least partially to blame, but there are broader issues that have led to consistent underperformance in the sector over most time periods.
On the financial services side, we saw numbers come in from FirstRand and Discovery. FirstRand had to take a nasty provision in the UK and still managed to grow earnings. As for Discovery, they've put in one of the best growth performances I've seen at the group and the share price has moved to 52-week highs.
On a busy day of news, there were also updates from Brimstone, Capital & Regional, Lesaka, SA Corporate Real Estate and Sibanye-Stillwater. Based on a great suggestion from a reader, I've also renamed the Little Bites section to the Nibbles - and there are some tasty crumbs in there too.
Get it all in Ghost Bites, your one-click SENS summary at this link>>>
If you are interested in learning more about Lesaka and the fintech platform they are building, you should register to attend Unlock the Stock next week. This is a terrific opportunity to engage directly with management and pose your questions. Attendance is free! Register here>>>
As we head into the weekend and you hopefully get a chance to do something for yourself today, set time aside to listen to the latest episode of The Trader's Handbook. Episode 6 covers trading signals, market trends and important indicators used by successful traders, based on insights available from IG Markets South Africa. I strongly recommend listening to this show (and there's a full transcript available as well).
As usual on a Friday, DealMakers is here with excellent summaries on local M&A, local corporate finance deals and transactions in Africa in the past week. There are also pieces on raising equity on the JSE, as well as putting together employee share ownership schemes for startups.
Have a great day!
PS: you like the Springboks, don't you? Well, if you refer five friends to Ghost Mail, you stand a chance to win 2x tickets to the Argentina game later this month! Made possible by my Ghost Mail partners, you can find the referral link here. |
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FEATURED: The Trader's Handbook Ep 6 |
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| | IG Markets Episode 6: Traders have a variety of important trading signals and indicators that they look at to understand market trends and predict where things are going. Learn all about it at this link>>> |
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FEATURED: How to Build a Bull Case |
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Magic Markets: The art and science of investing requires critical thinking and being able to make arguments for and against an investment. In this terrific episode, we run through the way to build a bull case when analysing a company. Enjoy it here>>> |
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FEATURED: A responsible investing roadmap |
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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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FEATURED: Mastering your portfolio with ETFs and single stocks |
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| | Ghost Stories: Doing your own research is a great concept and all, but how do you actually do it for both ETFs and single stocks? In this podcast with Siyabulela Nomoyi of Satrix, we dug into this topic. Find it here>>> |
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Add these to your playlist: |
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- Ghost Wrap: In this fast-paced podcast, I covered CA Sales Holdings, RCL Foods + Rainbow Chicken, Motus and Bidvest. Made possible by the support of Forvis Mazars, you can find it here>>>
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- Magic Markets: Comparing India to China is fascinating at the moment, with the former going from strength to strength and the latter losing its shine - for now, at least. To understand some of the structural differences between these critical emerging markets, listen to this show>>>
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Ghost Bites - local company news: |
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Ghost Bites: The latest on Bell Equipment, Brimstone, Capital & Regional, Discovery, FirstRand, Lesaka, RFG, SA Corporate Real Estate, Sibanye-Stillwater and Truworths along with various Nibbles in Ghost Bites here>>> |
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International Business Snippet: |
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It seems as though our skies might be safer in the near future, as Boeing workers are going on strike and therefore won't be making any planes. After all the safety issues at the company recently, this is yet another blow to performance. This is going to be a massive test for the new CEO who has only been in the role for a matter of weeks.
The inflationary pressures on Americans are coming through strongly among the working class. Not only can we see those issues in news like this wage strike, but also in the results of retailers who are focused on servicing the average American. This type of news only amplifies the calls for an interest rate cut.
Speaking of retailers focused on lower income consumers, our latest research in Magic Markets Premium is on Dollar Tree. The company is in trouble, with my partner in Magic Markets, Mohammed Nalla, describing it to me as "one of the ugliest charts you'll see" - and the reasons why are a great learning opportunity for our subscribers this week. |
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IG Morning Call: daily macroeconomic update |
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US and European equity markets have continued to gain after the European Central Bank (ECB) cut rates by 25 basis points yesterday and as the Federal Reserve looks set to do the same next week. Asian markets are trading mixed with the Hang Seng Index up, while the Shanghai Composite and Nikkei trade lower on the day.
The JSE All-Share Index looks set to follow its western counterparts higher this morning.
Comments from Fed member Bill Dudley suggesting that a 50 points rate cut by the Federal Reserve is not off the cards has seen renewed weakness in the dollar. Fed Fund Futures are now implying a 45% probability of the larger rate cut being realised. The rand has firmed as a result.
Oil prices have continued to rebound from oversold territory as near term production in the US is threatened by Hurricane Francine.
Gold prices have surged to new high territory on the back of renewed weakness in the US dollar.
There is no high impact economic data scheduled for today.
Key Indicators: USD/ZAR R17.75/$ | US 10yr 3.64% | Gold $2,567/oz | Platinum $986/oz | Brent Crude $72.50
The macroeconomic update is based on IG's morning call update |
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