| Good morning Voornaam, You're reading this because (1) you are interested in the markets and (2) you are particularly interested in picking stocks. If those things don't apply to you and you were hoping that this is a collection of spooky stories instead, then you're absolutely in the wrong place.
But if they do apply, which they probably do, then I highly recommend setting aside your lunch break on a Thursday and attending the live Unlock the Stock events. They give you a wonderful opportunity to engage directly with management teams of locally listed companies. You can put on your equity analyst hat for an hour and join us this Thursday for PBT Group, where we will be focusing on the recent results and what they mean going forward. Attendance is free, but you must register. Register for free to attend>>>
Fresh out the oven:
Ghost Bites: Spear REIT has released the circular for the important acquisition of a portfolio from Emira. ArcelorMittal has had a terrible time of things, but is the GNU an opportunity? Brait and Ethos are moving forward with their respective plans. Sibanye-Stillwater has concluded the s189 process. Tongaat Hulett might remain listed, but I doubt it. 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>>> Dominique Olivier: Blue is actually the colour of money, not green. Ever wondered where royal blue comes from? Can you believe that there was a time when even Michelangelo couldn't afford blue pigments? Dominique Olivier digs into the history of the most expensive colour of all - and how rarity doesn't last forever. Read it here>>> Satrix: Balancing risk and romance isn't easy. The stats tell us that financial misalignment is a major source of strain in relationships. In this lovely piece from Satrix, Duma Mxenge shares insights into how couples can reduce that stress in their relationships. Read it here>>> |
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| In case you missed it:
Magic Markets: A real-world due diligence is great for any portfolio. On the latest show, we discussed my recent experience with electric vehicles, visiting Sephora stores (part of LVMH) and playing at Topgolf, along with much more. Listen to the show and read the transcript 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>>> 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:
Spear REIT is seen as one of the better local REITs, with a consistent and intelligent strategy in the portfolio. The acquisition of a portfolio from Emira is a great example of how a fund can keep growing, with the circular making for interesting reading for investors. I also make mention of the low advisory fees on the deal, which is always great to see for shareholders.
ArcelorMittal has been facing conditions that are as hard as the steel that it produces. Chinese domestic demand has put pressure on global steel markets and South African domestic demand isn't helping matters. But if local infrastructure and general business activity really does pick up under the GNU, then could this be a (very) risky and potentially lucrative way to play the GNU theme?
Sibanye-Stillwater is done with its s189 process locally, with the support services for gold and PGM operations being combined.
Brait received shareholder approval for the recapitalisation plan and Ethos is moving forward with the unbundling of the Brait shares.
And finally, Tongaat Hulett might actually remain a listed company. But with such a tiny public spread after the business is saved, I'm not sure what the point would be.
All these stories, plus the Little Bites, are available in Ghost Bites at this link>>>
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| Blue: the colour of money |
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| Rarity doesn't last forever. If people can find a way to make something accessible or cheaper, they will.
The colour blue is the perfect example. Once the colour of royalty and with very good reason, blue is now available to everyone. Dominique Olivier tells this story. 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:
General Motors just reported its best US quarterly sales since 2020, with electric vehicle deliveries up 40% year-on-year. Be careful of the base effect here, as electric vehicles are still only 3.2% of total quarter sales. Full-size pickup trucks remain the American favourite, contributing roughly a third of sales and up 6% year-on-year.
If you look over six months though, total GM sales are down 0.4%. There's at least some positive momentum though, echoed by sales growth at Toyota and Hyundai in the US market in the last quarter. Kia was down, so the super competitive nature of this industry remains a feature.
If you want to become a better stock picker, Magic Markets Premium is perfect for you. We covered Darden Restaurants last 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 with IG's morning call The dollar index has drifted slightly lower along with US Treasury Yields, following slightly more dovish commentary from Fed Chair Jerome Powell. A better than expected inflation print out of Europe saw the euro gaining against a broad basket of currencies.
The rand has however weakened from overbought levels as domestic markets consider the larger than expected cabinet size and pace towards much needed economic reform.
European index futures are trading in the green as the dust starts to settle on the French elections. Asian markets are mostly firmer on expectations of more stimulus to follow within the region. The JSE All-Share Index is expected to open firmer as well, taking its cues from global index peers.
Oil prices have edged higher following a larger than expected inventory draw reported by US commercial firms.
Gold is trading marginally higher in early trade.
Traders will look to US ADP jobs data and minutes from the last Federal Open Market Committee (FOMC) meeting today for short term directional guidance.
Key Indicators: USD/ZAR R18.61/$ | US 10yr 4.43% | Gold $2,334/oz | Platinum $997/oz | Brent Crude $86.51
The macroeconomic update is based on IG's morning call update |
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