It's been a pretty rough week on the markets for most people. We've seen share prices take nasty knocks. As usual, some of those moves look too severe and others don't look like enough punishment was dished out. If the markets perfectly captured every move, none of us would be able to make proper money from following this stuff. In other words, I'm usually grateful for volatility.
Another thing I'm grateful for is SPAR hopefully bringing an end to high-risk offshore deals for South African retailers. Based on the unmitigated disaster of Poland, in which they are literally paying a fortune to give the business away, I am hoping that independent directors of listed companies spend less time worrying about the 10th different board committee and more time asking the questions that actually protect shareholders.
Offshore losses are nothing new to local retailers, with Woolworths as the eternal poster child thanks to David Jones. Sadly, their remaining Australasian business (Country Road) is taking strain as well. That might be manageable if the local business was also working, but the recovery in Fashion Beauty and Home has stalled and thus poor old Woolworths Food is having to carry all the responsibility for growth. They might have endless organic yoghurts, but there's only so much they can achieve for organic growth.
Please, South Africa, let's send the Springboks overseas to represent us and keep our retailers here at home!
In other retail news in Ghost Bites, you'll find an important update from The Foschini Group - where the focus seems to be firmly on margins rather than market share - and Cashbuild, which I hope is on the up from hereon out. Telkom also managed to sneak in there as the non-retail update for the day.
It was a busy day of important news and you can get all of it right here in Ghost Bites>>>
To lift your head from retail, there are also two brand new podcasts today. The first is a Ghost Wrap, featuring CA Sales Holdings, RCL Foods + Rainbow Chicken (together for the last time), Motus and Bidvest. Made possible by the support of Forvis Mazars, you'll find it here.
The second is a great Magic Markets show that focuses on India and the opportunities there. This is an example of an offshore market where our local corporates should probably be looking, with Sanlam having been invested there for years. Compared to China, it's a fascinating story. Listen to it here>>>
The market is just full of interesting stuff, isn't it? One of the ways to take advantage is through trading short-term moves. This is a different sport to investing, as I've learnt through my IG Markets South Africa demo account. One of the techniques used by successful traders is technical analysis. IG Markets has a great article on the topic that you can read at this link>>>
Have a great day - and don't forget to register for free to attend Unlock the Stock next week with CA Sales Holdings!
