I'm keeping it short and sweet this morning. Yesterday was a relatively quiet day on the JSE and that gives you a good excuse to read this morning's articles in detail.
I used the opportunity to explain some key financial reporting and corporate finance concepts in the articles. I love using practical examples to explain how certain things work.
In Shoprite, for example, there's a 53-week result which is important to understand when looking at retailers. It really impacts the numbers and requires a more careful read of the results.
In Imperial Logistics, we have a good example of a deal timeline. Even though the circular for the buyout and delisting has already been sent to shareholders, the deal is likely to only conclude in February. These things take time.
To wer Property Fund is a great example of a scheme of arrangement and standby offer. Well, it will be at least, provided RDC Properties can pull the funding together for the potential deal. I sold my Tower shares during the riots, locking in nearly the full price that would've been paid to me anyway when the deal is concluded. I didn't feel like taking a gamble on whether the buyer would get cold feet about investing in South Africa.
Thankfully, that doesn't seem to have happened. If RDC can arrange the necessary funding, a firm offer should be coming through in the next month or so.
If you want to understand more about the
various stock exchanges in South Africa (yes - there's more than one!) then
read this article on thefinanceghost.com in which I commented on ZAR X, 4AX (t o be renamed the Cape Town Stock Exchange) and A2X which has a unique strategy in the local market.
Finally, for an audio fix while you drink your coffee, the
latest episode of Magic Markets is a discussion on the commodity economy and why it matters for investors who are worried about inflation. For those who are serious about investing and learning more, Magic Markets is a wonderful way to tap into expert knowledge.
Listen to the show here.
That's it. Let's get out there and (try to) make some money!
The Finance Ghost
