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Good Morning Voornaam,

Ghost Bites:

Alphamin beats its production guidance
Ascendis is one step closer to closing the deal with Austell
Equites is proof that the grass isn't always greener on the other side
Mac Brothers continues to hit the Grand Parade income statement
Massmart couldn't find a buyer for Game stores in East and West Africa

For these stories and a few more (like the latest rough diamond sales at De Beers), read Ghost Bites today>>>

The pain trade

If you Google "pain trade" you'll find a term used by traders to describe an unexpected turn in the markets that hurts a widely-followed strategy. In other words, it causes pain to a lot of traders.

I'll borrow the term to discuss what happens when corporates get it wrong. I am always amazed at how long it takes large companies to give up on a particular strategy, with consequences that last for years. There are many "pain trades" affecting corporates on the JSE.

In this morning's Ghost Bites, there are two such examples. The first is Mac Brothers, the soggy le ftovers of the Grand Parade food strategy. The catering business is now in liquidation and Grand Parade has to take another knock to the income statement because of a guarantee that was given on a sale and leaseback transaction. The second is Massmart's ongoing troubles with Game, with the stores in East and West Africa now being sold because no buyer could be found.

Of course, the bigger question is around what happens to Game in South Africa?

Looking abroad

There's a great mix of stories in Ghost Global this week:

Bed, Bath & Beyond keeps capturing our imagination with awful numbers
Inflationary pressures are visible at Costco, yet the famous retailer keeps delivering
Nike's business has a tick on the shoes and a cross in the financials
Tesla's AI Day gives Musk enthusiasts something to get excited about

Join Ghost Grads Karel Zowitsky and Kreeti Panday in unpacking these stories from across the pond. Read Ghost Global here>>>

Volatility is still the theme

Sentiment turned sharply weaker as Wall Street opened yesterday, with US bond yields rising and currencies losing ground against the dollar. The rand traded weaker at R17.88 to the US dollar. This also hit commodities, w ith gold and the PGMs weaker. To finish off a painful day from the perspective of most South Africans, Brent Crude traded higher based on OPEC+ cutting output in November.

In exciting news, the team at TreasuryONE is hosting another webinar for the Ghosties! These events are a real treat, with a great presentation on macroeconomic drivers in the market and an opportunity to ask questions at the end. The next event is at 1pm on Wednesday 12th October and you can sign up for free at this link>>>

Finally, with a new Magic Markets episode due to be released tomorrow , make sure you've listened to Episode 95! It includes some great tips on navigating a bear market. You'll find it here>>>

Have a lovely day!

Ghost Bites (Alphamin | Ascendis | Equites | Grand Parade | Massmart)

Alphamin beats production guidance. Ascendis is a step closer to selling to Austell. Equites is proof that the UK doesn;t always beat the SA economy. GPI is still getting hurt by Mac Brothers. Massmart can't sell Game in Africa.

Ghost Global (Bed, Bath & Beyond | Costco | Nike | Tesla)

In this week's edition of Ghost Global, Ghost Grads Karel Zowitsky and Kreeti Panday bring us the latest on a variety of consumer facing stocks in the US.

Magic Markets Ep95: Money in a bear market

You can make money in a bear market, provided you know what you're doing and you trade with caution. In this podcast, we explain short vs. long positions and discuss views on everything from oil through to the UK property market.

Listen Now

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