| Good morning Voornaam, There's a specific sports tournament underway at the moment that I have deliberately avoided commenting on or watching, just in case I jinx it for the umpteenth time in my life. If you know, you know.
Don't miss out - make sure you've registered for Unlock the Stock later today at 12pm, featuring the management teams of Spear REIT and Adcorp.
Fresh out the oven:
Ghost Bites: Sephaku has reported really strong numbers, but Q1 of the new financial year has been slow. This is a problem echoed by Absa. De Beers seems to be getting worse. Primeserv is a great small cap story. Pick n Pay is getting everything in place for its rights offer. Together with the important Little Bites, you can get all the details in Ghost Bites>>>
Investec No Ordinary Wednesday podcast: The market may be unpredictable, but your investment strategy doesn’t have to be. Investec Investment Management experts share their insights on what approaches are winning, common mistakes investors make, and why staying the course is important. Enjoy it here>>> Twelve B Energy Fund II: The fund is closing on 30 June. The solar investment trend in South Africa remains an imperative, as Tivon Loubser explains in this article. If you want to invest in the fund, be sure to contact them this week. Get full details here>>> Unlock the Stock: Oceana Group recently presented on Unlock the Stock for the first time. To get to grips with this fishing group and the strong recent performance, watch the insightful presentation and Q&A here>>> |
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| In case you missed it:
Dominique Olivier: Sometimes, businesses are here for a good time rather than a long time. For insights into trends that end and what that means for businesses (EskomSePush, anyone?) you can read this article>>> Magic Markets: With my travels abroad in the past week and the incredible improvement in sentiment back home, this was the perfect opportunity to focus on the dangers of home country bias in the latest episode of Magic Markets. For offshore vs. SA financial insights (including life on the ground), find it here>>> Ghost Stories with Kingsley Williams of Satrix: There is only one free lunch in investing. Aside from the benefits of diversification, we discussed many other elements of investing. You can enjoy it here>>>
Ghost Stories with Michael Field of Fedgroup: There are different ways to think about portfolio construction and how important elements like yield and inflation protection can be brought in. Learn more here>>>
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| Learn all about Oceana Group |
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| Oceana Group recently reported record first-half performance. To understand it properly and to assess the group's prospects, you can watch the presentation and Q&A on Unlock the Stock. The recording is available here. |
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Local company news:
Sephaku has reported a strong set of numbers that reflect excellent margin expansion at both major operations in the group. The momentum hasn't quite carried forward into the new year though, as South Africa took a deep breath before elections and slowed down on projects.
Absa, like Nedbank earlier in the week, has echoed this view about the first quarter of the year. Unlike Nedbank, there are other reasons why Absa's earnings have actually headed in the wrong direction. They will need to deliver a strong second half of the year.
At De Beers, lab-grown diamonds continue to do their damage, even though many in the industry have their heads in the sand in the hopes that lab-grown will simply go away. When you create an artificial market for something (as De Beers did all those years ago), you are at risk of disruption.
Primeserv is one of the better small caps on the JSE, as a five-year share price chart alongside the recent results will show you.
And finally, Pick n Pay has gotten the shareholder resolutions in place to support the pending rights offer.
All these stories, plus the Little Bites, are available in Ghost Bites at this link>>>
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| Trends that end: businesses with short shelf lives |
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| What happens when a business finds itself offering a solution that no longer seems to have a problem? Can it adapt, or will it die?
With the sudden disappearance of loadshedding, Dominique Olivier dug into this concept. Read it here>>> |
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| The only free lunch in investing |
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| With volatility as the theme in markets in a year of elections, it’s important to keep your head as an equity investor. Take a long-term view and let the market do its job. Easier said than done, of course.
Kingsley Williams joined me to share practical tips and important insights into investing. The podcast and full transcript are available here. |
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International business news:
Shein might not find a red carpet in London either, with the company weighing up an IPO on the London Stock Exchange rather than in the US. Although London is starved of new listings (believe it or not), the same concerns around labour policies at Shein and other issues are being raised on that side of the Atlantic. This is the age-old story around ESG really: the real test for how much people care about this stuff is when there's a lot of money on the table.
Speaking of the threat of Chinese competitors, Amazon is planning a discount store to directly compete with Temu and Shein. This will allow Chinese sellers to ship directly to the US. As a US-based company, one would hope that Amazon will do proper vetting around supply chains.
We covered Darden Restaurants in Magic Markets Premium this week. To get access to this research and the rest of the vast library, subscribe to the platform here. |
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| Macroeconomic Update As we appear to be on the cusp of cabinet announcements, the rand is holding steady in the range we've seen in recent days.
The markets are also waiting for the release of PCE data in the US tomorrow. Today, the final US Q1 GDP release is due, with expectations of growth of 1.3%. Weekly jobless claims numbers and US durable goods orders data will be released today as well.
Key indicators: USD/ZAR R18.14; US 10-year 4.33%; Gold $2,300; Platinum ZAR R18,269; Brent Crude $85.06
This macroeconomic update is based on TreasuryONE's morning update. |
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