| Good morning Voornaam, Quick links: Standard Bank had a wonderful time in 2023. Resilient is paying dividends despite exposure to Nigeria and Pick n Pay (shocker, right?) and African Rainbow Capital has a growth story to tell. Also look out for Caxton and CTP - Cognition, Exxaro and MC Mining in Ghost Bites, brought to you by Fedgroup. Interested in learning more about private credit in the US market? Harris Gorre of Grovepoint Investment Management LLP brings us an excellent piece on how to navigate the US private debt market and take advantage of the opportunities it brings. Read it here>>> Are boycotts of badly behaved businesses effective, or just a waste of time? Dominique Olivier shares her views on whether consumer activism actually works, with Nestle as a prime example. Read this great piece here>>> Investec has launched the Investec Nikkei 225 Autocall, a structured product that references the Japanese market. You can get all the details in this Ghost Stories podcast with Brian McMillan. There's a brand new episode of the Ghost Wrap podcast thanks to Mazars, which means you need just a few minutes to get the latest on Mustek, Curro, Sea Harvest and Quilter - available here. Also from Satrix, get a very helpful overview of recent index performance metrics and trends in the company's March newsletter, republished on the Ghost Mail website here. A brand new episode of the Magic Markets podcast gives you the latest on Saudi Aramco and Broadcom. |
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| LISTEN: The Investec Nikkei 225 Autocall
with Brian McMillan of Investec |
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| Brian McMillan of Structured Products at Investec talked to me about the Investec Nikkei 225 Autocall.
It offers exposure to the Nikkei 225 index over a period of up to five years with an enhanced return of up to 17% per annum in ZAR or 11.5% per annum in USD. Importantly, there is 100% capital protection provided the index does not drop by more than 30%.
Listen to this podcast to find out more. |
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| READ: Private credit - the bold "bank heist"
(by Harris Gorre, Grovepoint Investment Management LLP) |
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| The US market has seen substantial growth in the private credit market. But what is the right approach to investing in this space?
Harris Gorre of Grovepoint Investment Management walks you through his strategy in this article. |
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| READ: Bad business and the bother with boycotts
(by Dominique Olivier) |
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| Using Nestle as an excellent example, Dominique Olivier delves into whether consumer activism actually works.
Are boycotts effective, or do they just make people feel better? Find out here. |
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Local company news:
Ghost Bites is brought to you by Fedgroup.
Standard Bank achieved something rather difficult in 2023: the successful navigation of the opportunities and risks in Africa. Heck, if ChatGPT wrote this, it would be the ever-changing dynamic landscape - and for once, the annoying AI would be getting it right. Africa is all of those things, yet Standard Bank grew HEPS by 26%. Despite this, the share price fell yesterday as the market digested the earnings guidance.
Speaking of earnings, Resilient pays dividends despite having exposure to Nigeria (which they found a way out of now) and Pick n Pay. It's almost like the fund is living up to its name, right?
African Rainbow Capital has a good story to tell on the investments in rain and Tyme Group, with more capital being put into both. It's a worry that Kropz is looking more and more like a black hole though, with operations at the mine not performing at the level that the fund is looking for.
Also in mining, Exxaro released results that show the impact of a significant drop in earnings in the coal business. MC Mining's takeover attempt is getting really juicy now, with Goldway firing some barbs in the direction of the independent board.
Finally, Caxton has formally made an offer to Cognition shareholders in the form of a scheme. It's only at a slight premium, which doesn't surprise me at all given the lack of liquidity in Cognition and most of the value being derived from cash.
All these stories (and more) are covered in Ghost Bites, available at this link.
Check out the most recent episode of the Ghost Wrap podcast, made possible by Mazars. It takes just a few minutes to get the latest on Mustek, Curro, Sea Harvest and Quilter. Get it here>>>
You can also enjoy my latest Namibian radio segment at this link, dealing with Absa, Remgro, Quantum Foods, Caxton, Old Mutual and WeBuyCars.
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| READ: Satrix March 2024 newsletter with market trends |
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| | | Satrix's latest newsletter is a great overview of index performance up to the end of February, along with the trends responsible for the numbers.
There are also some fun stats about returns in leap years! Read it here. |
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| READ: Artificial Intelligence - fad or future, and how best to invest
(by Nico Katzke of Satrix) |
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| | | Nico Katzke of Satrix asks the real questions when it comes to AI, including the ones that few seem to be asking about its sustainability.
Get his views here. |
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| LISTEN: Magic Markets podcast |
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| In Episode 166 of Magic Markets, we latched onto the concept of whether chips are the new oil. How better to do this than by covering chips and oil?
It's not as tasty as covering chips in oil, but we still enjoyed ourselves. I covered Saudi Aramco (a name you'll know from Formula One) and Mohammed Nalla dealt with Broadcom as one of the lesser-known names in the tech and semiconductor space.
Magic Markets is a great way to expand your reach to global opportunities. Listen to the show here.
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| Currencies, commodities and rates: TreasuryONE Market Update US data helped the dollar firm, despite an initial weaker move as retail sales missed the mark in that all-important economy. US PPI for February was ahead of market expectations though, putting momentum back towards the dollar.
In the week to come, brace yourselves for central bank meetings and local inflation.
Key indicators: USD/ZAR R18.77; US 10-year 4.28%; Gold $2,164; Platinum ZAR R17,390; Brent Crude $85.21 |
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| LISTEN: The ETF product design process
with Siyabulela Nomoyi of Satrix |
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| | | Delving into the ETF product design process and with a discussion on the latest ETF product launches at Satrix, Siyabulela Nomoyi joined me for this insightful conversation.
Don't miss it! |
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International company news:
Shares in Under Armour took a 12% dive after the retailer announced that the CEO would be stepping down after a year on the job. Founder Kevin Plank is returning to the CEO role, giving us yet another corporate example of a failed succession story. The company is struggling with disappointing sales, including in North America. Retail can be a cruel game.
It can also go well though, like in the example of Dick's Sporting Goods releasing earnings that beat expectations in the latest quarter. In fact, the company achieved its largest ever sales quarter! Watch out for ongoing challenges with "shrink" in periods to come though, with US-based retailers continuing to struggle with theft of goods.
It's not just South Africa that has these problems, you know.
If you want to learn about global companies, then Magic Markets Premium is the perfect way to do it. For just R99/month, you get access to the entire research library that includes a new research report every week on a global stock. There's no minimum monthly commitment, either. Subscribe here and start learning>>> READ: Stability doesn't always have to come at a cost
with Fedgroup |
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| | | Fedgroup believes that a combination of fixed-term investments can do more than just withstand a battering. In fact, they cann offer solid returns as well.
Learn more here. |
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Our content is intended to be used and must be used for informational purposes only. You must do your own analysis before executing any investments or strategic decisions, based on your own circumstances. We do not provide personalised recommendations or views as to whether an investment approach or corporate strategy is suited to the needs of a specific individual or entity. You should take independent financial advice from a suitably qualified individual who gives due regard to your personal circumstances.
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