Good morning Voornaam,
If ever there was a time of year to announce the acquisition of a hotel and casino group, it's surely December. The Gauteng casinos are a feature of the landscape there, dwarfing anything I've seen here in Cape Town. Emperors Palace is one of the best facilities around and Sun International is acquiring it by buying Peermont. Full details are in Ghost Bites, of course. Keep reading.
Be sure to listen to Ghost Wrap, which brings you a whirlwind update on Tharisa, the enX - Nedbank deal, Thungela, Italtile and Grindrod. Ghost Wrap is brought to you by Mazars. You'll find the latest episode here.
There's also a new Magic Markets podcast, with international group Lululemon's results inspiring us to focus on the world of fashion retail. Moe dealt with the latest from Lululemon and I gave an overview of South African fashion retailers, including an explanation of why they tend to be so diversified. Magic Markets is made possible by data automation experts B2IT. Find the latest episode here.
Although we seem to be in a lull for load shedding at the moment, we all know it won't last. If you've been wondering how a solar subscription works, then AA Inform has put together a helpful article that gives you the basics. Read it here>>>
Are you wondering what to get someone for Christmas? Something really meaningful that will actually add value to their lives? Every single week, we release a new Magic Markets Premium research report that is only available to our subscribers. This means that the gift of an annual subscription is not just the gift of knowledge, but a gift that keeps on giving! At R990/year, the lover of markets in your life will thank you and so will your pocket. Buy a subscription here>>>
Have a great day! |
|---|
|
|---|
BRAND NEW: Ghost Wrap podcast
(Tharisa | enX - Nedbank | Thungela | Italtile | Grindrod) |
|---|
|
|---|
| | The latest Ghost Wrap podcast goes into more detail than usual, as these stories are too important to miss. Ghost Wrap is brought to you by Mazars. |
|---|
|
|---|
BRAND NEW: Magic Markets podcast |
|---|
|
|---|
In Episode 155 of Magic Markets, we looked at pure-play athleisure business Lululemon and compared it to various South African apparel retailers, with particular attention paid to why local retailers are far more diversified than a group like Lululemon and what this means for investors.
This show is brought to you by international data and automation specialists B2IT. |
|---|
| |
|---|
LATEST: Simple, but Effective Investing |
|---|
|
|---|
Nico Katzke of Satrix is passionate about helping people achieve investment success.
Diversification is a critical ingredient in that recipe. He writes about it in this article. I highly recommend reading it. |
|---|
| |
|---|
LATEST: Photography and the art of disruption
(by Dominique Olivier) |
|---|
|
|---|
In her latest column, Dominique Olivier tells the story of photography and how it disrupted the art world. There's much to learn about innovation from this story. |
|---|
| |
|---|
LATEST: How to really manage your money,
featuring Nico Katzke of Satrix |
|---|
|
|---|
| | If you can't save, then you can't invest. Managing your money properly is the first step in any investment journey. I loved discussing real-world ideas and strategies with Nico Katzke of Satrix in this podcast. It's well worth a listen. |
|---|
|
|---|
LATEST: Unlock the Stock with TWK Investments |
|---|
|
|---|
TWK Investments returned to the Unlock the Stock platform to share insights into the recent numbers and the strategic outlook.
You can watch the recording here, thanks to our partner A2X. |
|---|
| |
|---|
LATEST: Unlock the Stock with Karooooo |
|---|
|
|---|
| | Karooooo joined the Unlock the Stock platform for the first time to share insights into the recent numbers and the strategic outlook both locally and abroad.
You can watch the recording here, thanks to our partner A2X. |
|---|
|
|---|
DAILY: TreasuryONE Market Update The rand lost ground yesterday as the market pulled back on its enthusiasm around the extent of rate cuts next year. Liquidity is getting thin as we head into the holidays and traders are reducing their positions. Our currency is at R18.57 this morning.
The Bank of Japan kept its interest rate at -0.10% as expected, whilst also not making any adjustments to the current yield curve control policy. The
Japanese yen weakened by around 5% after the announcement.
Oil has caught a bid based on concerns around the threat to shipping lanes in the Red Sea. Brent Crude is up at $78.10 this morning.
Remember to watch the recording of the webinar that I hosted with TreasuryONE here. |
|---|
|
|---|
| | Get the latest on Accelerate Property Fund, Anglo American, Ascendis, Jubilee Metals, MC Mining, Richemont, Sabvest, Sun International and Trustco. This is all available with a single click in Ghost Bites. |
|---|
|
|---|
The sun shines on the Palace of Dreams Sun International has pulled off an acquisition of Peermont (the owner of Emperors Palace and various other casinos and online betting businesses) that looks more like a private equity transaction than anything else.
It's all about paying a relatively modest EBITDA multiple and then juicing the deal up with maximum debt, in the hope that the underlying business services that debt over the next few years and creates equity value for Sun International shareholders out of thin air. Of course, that's if it goes well. If it goes badly, then Sun International shareholders will be chipping in to cover the debt. If you want risk-free stuff, then you probably shouldn't have invested in a casino group in the first place!
I like the deal and I think they have a solid chance of coming out the other side with what they really wanted (Emperors Palace) in what will go down as an intelligent deal with a high internal rate of return for Sun International shareholders. We will only know for sure in years to come!
A company that has gotten on the wrong side of debt is Accelerate Property Fund. They bit off more than they can chew with Fourways Mall and they are sitting with a vacancy problem at that property. External specialists are being called in to help solve it. In the meantime, there's simply too much leverage on the balance sheet and fixing it is painful.
Speaking of pain, Richemont's journey with aptly-named FARFETCH has come to an end. It looks like Richemont will suffer a loss of $300 million in the process based on convertible notes issued by FARFETCH to Richemont back in November 2020. I really hated this deal and I think the first loss is very much the best loss here.
Also look out for news from Anglo American, Ascendis, Jubilee Metals (with a really quick capital raise on the London market), Sabvest and Trustco. Of course, there's the usual assortment of Little Bites as well.
Full details on these stories can be found with a single click in Ghost Bites. Find it here>>> |
|---|
|
|---|
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. |
|---|
|
|---|
|
|
