| Good morning Voornaam, Remgro is so large and diverse that the good news in one pocket is inevitably offset by the bad news somewhere else. Still, I don't think anyone expected the post-deal disaster at Distell/Heineken, with that business now contributing substantial losses to Remgro. The best bits at Remgro are listed companies that you can invest in directly (like RCL Foods and OUTsurance), so the traded discount to intrinsic net asset value per share (i.e. the difference between what the market pays for the shares and what the directors say they are worth) isn't likely to reduce anytime soon. Buying one of the most famous names on the JSE is no guarantee of success.
In better news, the property sector momentum seems to be increasing. Lighthouse Properties wanted to raise R500 million fresh equity and they managed to increase it to R1 billion. Institutions are strongly supporting raises by the better funds on the local market, which is encouraging for where we are in the cycle.
I also covered growth at Bytes, updated numbers at Clientele, the strong performance at Discovery, final numbers at Mustek and a rather interesting deal by Powerfleet that entails the acquisition of a Canadian business. Get it all in Ghost Bites, your one-click SENS summary at this link>>>
In case you missed it, the latest Ghost Bites podcast covers the recent news at Sibanye-Stillwater, Truworths, Finbond and Barloworld. Check it out here>>>
Keen to understand more about market volatility? The Average True Range indicator is a really helpful tool, as explained in this piece by IG Markets South Africa. Trading is all about developing the right skillset and system and then sticking to it. The more you read, the better you'll do!
Finally, Friday means we get the latest from the team at DealMakers. As usual, they've covered South African M&A and local corporate finance deals, as well as African M&A and debt financing. On the thought leadership side, there's a legal piece on non-variation clauses and a view on investment in African natural resources.
See you on Sunday for Ghost Mail Weekender - coming to you all the way from Istanbul! |
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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: Declutter and spring-clean your portfolio |
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| Satrix: Spring is the time of year to clean out those cupboards and figure out what you don't need anymore. Your portfolio is no different, as discussed in this piece by Satrix. Find it here>>> |
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| FEATURED: How to Build a Bear Case |
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| Magic Markets: Here's the dark side of the moon - the bear case, the thinking that requires you to imagine what might go wrong. Sometimes, it's going wrong right in front of you, provided you know where to look. Learn how to build a bear case 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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| Ghost Bites - local company news: |
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| Ghost Bites: The latest on Bytes Technology, Clientele, Discovery, Lighthouse Properties, Mustek, Powerfleet and Remgro along with various Nibbles in Ghost Bites here>>> |
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| | | Ghost Bites: Get up to date on the performance and latest news at Sibanye-Stillwater, Truworths, Finbond and Barloworld in just a few minutes. Brought to you by Forvis Mazars, you can enjoy Ghost Wrap here>>> |
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| Dominique Olivier: Like looking into a furry crystal ball |
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| Dominique Olivier: The global pet sector is set to boom by 2030 – and if we peer carefully beneath its furry surface, we are being given a few clues about what the family photos of the future will look like. Read more>>> |
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| International Business Snippet: |
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| The headlines coming out of the US at the moment point to an economy that was badly in need of the interest rate relief that has finally been delivered. For example, Darden Restaurants missed earnings estimates for its first quarter. Same-store sales were slightly down for the quarter. A sign of the times in terms of value meal offerings is that the group is reviving the Never Ending Pasta Bowl offering. Gotta love the name at least! Despite the pressure on earnings, the share price has rallied as the market prices in an improvement in discretionary spending - and therefore more people with an appetite for pasta.
Over at Nike, CEO John Donahoe is out. He's been there since January 2020 and oversaw a period of change in which Nike tried to get closer to its customers at the expense of retailers like Foot Locker. The focus was more on distribution channels than on product development. Interestingly, Ellott Hill is being dusted off from retirement to return to Nike, where sales are in trouble and the group has lost ground to competitors.
Our latest research in Magic Markets Premium is on Uber. This is one of my favourite growth stocks at the moment and I hold it in my portfolio. You'll see why in the latest report for our subscribers this week. |
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| IG Morning Call: daily macroeconomic update |
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| US equity benchmarks have surged higher with the S&P500 and Dow Jones Industrial Average trading to new high territory in the aftermath of an outsized rate cut by the Federal Reserve. While global equity benchmarks followed suit in terms of gains, futures markets are suggesting that we might see some profit taking this morning.
The dollar has softened while US Treasury Yields have drifted lower as well. The rand remains firm, as a 25bps instead of 50bps move by the South African Reserve Bank yesterday looks to protect carry trade interest.
Gold is back to testing new high territory, supported by the weaker dollar.
Oil prices gained yesterday on the back of continued tensions in the Middle East.
In the UK, retail sales data has come in well ahead of consensus this morning, while the Bank of Japan has left lending rates unchanged this morning.
Key Indicators: USD/ZAR R17.49/$ | US 10yr 3.71% | Gold $2,594/oz | Platinum $990/oz | Brent Crude $74.00
The macroeconomic update is based on IG's morning call update |
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