| Good morning Voornaam, The thing with dips is that you're never quite sure if they are done dipping. This volatility in the market is what drives risk. Risk is what drives the potential returns, so you can't have the good without the bad. With enough patience and a long enough time horizon, many dips iron themselves out and reward those who were brave. For those who are more actively trading, they need to be careful that they don't buy into an expensive mistake that sucks in capital without dishing out near-term returns. And occasionally, even long-term investors get hurt by dips that turn into structural declines.
This is why you have to be very careful when there are large moves in the market. Naspers and Prosus dished up such a move yesterday, driven by the US government deciding in its infinite wisdom that Tencent is a military company operating in the US. Now, I don't profess to be an expert on this stuff, but that sounds like a stretch for what is essentially a Chinese messaging and gaming business.
I've been longing for an excuse to jump in here, as I like what Fabricio Bloisi has been doing and I've been kicking myself for not having the conviction to invest in the new broom that is sweeping clean at the group. After yesterday's dip, I've now pulled the trigger. Hopefully it will turn out to be a tasty dip, rather than one that disappoints everyone standing around the chip bowl at the braai.
I cover this in Ghost Bites this morning, along with news of Schroder European Real Estate selling a retail property in Germany, as well as the usual assortment of Nibbles. Get it all in Ghost Bites here>>>
And in case you missed the Prosus acquisition news in December, that's one of the topics that I covered in the latest Ghost Wrap episode. I also dealt with Italtile, Renergen, Metair and Bell Equipment. Brought to you by Forvis Mazars, you can find it here>>>
For the qualifying entrepreneurs among you, remember that MIC Khulisani Ventures is looking to provide capital to businesses that are ready to aggressively grow. Applications need to be in by the end of January, with capital expected to flow by March. To fully understand the opportunity, be sure to listen to this podcast>>>
Magic Markets is back this week. Together with my partner Mohammed Nalla, our free show gets released tomorrow alongside our first Magic Markets Premium show for the year. For our subscribers, we will be reviewing Nike and explaining why we are the closest we've ever been to taking a long position in the company. Curious why? Subscribe for R99/month and you can find out. As the only content that I do behind a paywall that I control, believe me I make sure it's worth it.
Have a great day! |
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| Ghost Wrap - five insights from December |
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| | | Ghost Wrap: There were some great stories in December that are well worth keeping in mind in January. Italtile's share price needs a careful watch. Prosus is making major acquisitions again. Renergen is still dealing with teething issues - and a legal dispute as well. Metair is getting very little out of its Turkish business. Finally, will Bell Equipment shareholders kick themselves? I cover these topics in Ghost Wrap, brought to you by Forvis Mazars and available here>>> |
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| GHOST BITES - making sense of SENS on the SA market |
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| | | Naspers and Prosus dished up a juicy looking dip yesterday and I couldn't resist. Schroder European Real Estate sold a property in German and the return over the period of ownership shows exactly why that country isn't seen as lucrative anymore. Read more here>>> |
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| DOMINIQUE OLIVIER - Made to break?
The fight for the right to repair |
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| Cars. Smartphones. Appliances. People want to be able to repair their possessions and manufacturers want them to buy new ones instead. This has led to a fascinating tug-of-war and some particularly interesting court battles. Dominique Olivier tells the story>>> |
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| Unlock the Stock - KAL Group |
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| Unlock the Stock: KAL Group joined the platform for the first time to talk about the performance and strategic focus areas in the broader agriculture industry. Enjoy the presentation and Q&A here>>> |
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| MAGAnomics: Trump and the global economy |
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| International Business Snippet: |
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| In consumer electronics, AI technology is giving manufacturers an opportunity to accelerate sales. Why? Because they can convince consumers that they need new and shiny technology to make phone calls or watch TV. In a CNBC interview, the CEO of Samsung Electronics talked about how the global consumer electronics market for smartphones, TV and home appliances should grow by 3% in 2025. This shows you how slow the growth rate becomes in a mature industry. Add in the effects of competition and you usually arrive at a situation where companies in these industries aren't great investments unless they are truly differentiated, like Apple with its services ecosystem.
Magic Markets Premium kicks off the year with Nike this week, as we are now the closest we've been to taking a long position in the company. Under new CEO Elliott Hill, Nike looks set to get back to its core DNA. There's vast competition in this market, so will that be enough? And is the valuation really cheap enough yet? Subscribers find out this week. |
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| Magic Markets: Blockchain technology in financial markets |
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| | | Magic Markets: With crypto all the rage again, there isn't enough focus on how underlying blockchain technology can play a role in the markets. Mesh.trade and AnBro are working together to make it easier to invest in AnBro's funds. Find out more here>>> |
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| Key Indicators: USD/ZAR R18.71/$ | US 10yr 4.69% | Gold $2,651/oz | Platinum $960.50/oz | Brent Crude $77.52 |
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