| A few beaten-down stocks made welcome recoveries yesterday - helped by news that they are getting their debt under control. Sasol has completed the sale of a stake in its Lake Charles Chemicals Project in the US and will use the proceeds to pay down its debt. It's also taking other measures to make its business more resilient to commodity cycles and volatile markets. Meanwhile, Tongaat Hulett expects a strong recovery in first-half earnings as it gets its balance sheet in order. PPC says it has also made good progress with a restructuring and refinancing project and will unveil improved earnings when it releases its interim results next week. Shares of all three companies rose yesterday. EOH's declined despite a big improvement in its full-year performance and moves to reduce its debt. However, its shares have had a strong run, rising 29% last month. Also today, Nedbank says it's unlikely to declare a final dividend this year unless the Reserve Bank's Prudential Authority changes guidance that advised banks to preserve capital. And after buying shares from a minority shareholder in RCL Foods last week, Remgro says it will extend the same offer to some other minorities wanting out of the illiquid stock. Finally, the latest edition of Today's Trustee weighs up the argument between offshore exposure versus investing much-needed cash in SA's infrastructure. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics Ingham Analytics have updated their assessment of Capitec in "Froth back?" in which they analyse the financial situation and flesh out the valuation metrics. They are on record already in 2019 advising to stay away from banks as an investment, with the sole exception being Capitec. This has been the right call, with the banking sector falling and Capitec rising. But has Capitec perhaps run a bit too far? Those interested in ESG investing should look at "BHP scopes up" issued on Tuesday. | 