Good morning Voornaam,
- Through various steps, Transaction Capital will unlock R900m - R1.25bn in cash before unbundling WeBuyCars.
- Cocoa prices: love just got more expensive.
- TreasuryONE on hot US inflation numbers and the resultant pressure on the rand and equities
- Get your 2024 financial story off to the right start by listening to Duma Mxenge of Satrix explain his views on personal finance and market concepts.
- There's a brand new Ghost Wrap podcast bringing you the latest on Sasol, ArcelorMittal, Sappi, Curro and British American Tobacco - available here.
- The Magic Markets podcast updates you on Meta and Microsoft.
Local company news:
Transaction Capital has announced the various steps involved in the plan to unbundle WeBuyCars. Perhaps unsurprisingly, it's not as straightforward as just handing the shares over to shareholders.
The company needs cash to deal with the SA Taxi nightmare, so the unbundling includes a private placement with Coronation as the investor. This pumps in the cash needed for Transaction Capital to get a dividend out of WeBuyCars before it lists. In addition to this, the group will dilute its stake further via a sale of shares. With all said and done, Transaction Capital would unlock between R900 million and R1.25 billion to settle debt and other obligations.
As for the market cap of WeBuyCars, it gets quite complicated in terms of pre-money and post-money considerations (fancy terms for whether the value is before or after cash is invested into a company). It certainly helps that the results at WeBuyCars for the past four months look strong. Full details are in Ghost Bites.
There's no such excitement at Cashbuild unfortunately, which continues to deteriorate in conditions that really aren't supportive of their business model. Santam is also dealing with difficulties, but at least the returns on the insurance float are more than making up for the underwriting margin pressures.
Other major news came from Gold Fields, with the company largely meeting guidance but still seeing a deterioration year-on-year in key operating metrics. Finally, Textainer released results as a pre-cursor to the shareholder vote on the Stonepeak offer.
Get all the details in Ghost Bites>>>
For an efficient and insightful update on local news, the Ghost Wrap podcast should be a staple on your favourite podcast player. Made possible by Mazars, the latest episodde needs just 6 minutes of your time to update you on Sasol, ArcelorMittal, Sappi, Curro and British American Tobacco. Get it here>>>
International company news:
Thanks to data and automation specialists B2IT, Magic Markets is all about "big tech" in the brand new show. Meta and Microsoft are both in the Magnificent Seven, with the latter having been criminally overlooked in the FAANG era. With eye-watering share price movements over the past year, we dug into the latest results from these giants in this podcast>>>
When it comes to Valentine's Day, it's important for couples to decide whether or not they are doing something special. Of course, the dream is to honour and love someone every day of the year (including in a leap year) - not just on Valentine's Day!
For a lot of people, this is the day when love takes priority over everything else - and nobody feels that love more than restaurant owners and purveyors of cards and fluffy bears. Real love this year may well be measured by chocolate, with cocoa futures up around 40% since the start of the year.
Before you get carried away, this isn't because of demand for heart-shaped choccies. No, this is thanks to really tough weather conditions that have severely impacted crop yields in Ghana and the Ivory Coast.
Jokes aside, spare a thought for the farmers in those regions. Frontier markets that are largely dependent on one or two crops suffer terribly when something like this happens.
For those lucky enough to be receiving chocolates at these prices, just know that someone loves you.
Have a great day!  |
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READ: The Bumble story: if you need it, build it
(by Dominique Olivier) |
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Whitney Wolfe Herd went off and built the the business that she wished existed in this world. There's a lot to be said for that approach, even if the share price story hasn't worked out well.
Dominique Olivier digs into the story of Bumble. |
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LISTEN: The 2024 kick-off
with Duma Mxenge of Satrix |
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| | With a great mix of practical personal finance and investing concepts, this podcast with Duma Mxenge of Satrix will get you on the right path for 2024.
Don't miss it! |
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 Currencies, commodities and rates: TreasuryONE Market Update The US set a few hearts racing yesterday with hotter than expected inflation numbers that dashed hopes of early rate cuts. Inflation slowed to 3.1% from 3.4%, but that was higher than the expected 2.9%. The dollar was pushed to 3-month highs, with the rand trading at R19.10 this morning.
The 10-year yield moved higher to 4.32% and this caused pain for equities, with the S&P closing 1.37% lower on the day. The Nasdaq (filled with growth stocks) was affected even more, down 1.8%.
Gold also took a knock, down 1.4% to trade at $1,992. Sadly, platinum and palladium were 1.9% and 3.25% weaker respectively, with platinum ZAR down at R16,658.
Brent Crude is at $82.68, so that isn't great news for South Africans alongside the weaker rand.
As a Ghost Mail reader, you have a wonderful early bird opportunity to register for the 2024 post-budget panel discussion hosted by TreasuryONE, Econometrix and ETM Analytics. I absolutely cannot recommend this enough and I will also be attending to learn from the panel. Get it in your diaries now already by registering at this link>>> |
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LISTEN: Magic Markets podcast |
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In Episode 161 of Magic Markets, we dug into Meta and Microsoft as two of the most important names in the Magnificent Seven growth stocks that continue to dominate headlines (and portfolios for that matter).
What can we learn from recent earnings updates and the share price trends? Find out in this podcast, brought to you by international data and automation specialists B2IT. |
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READ: Satrix launches Satrix JSE Global Equity ETF |
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| | Satrix is releasing a new product that gives a higher weighting to local companies with international listings.
In other words: more of an offshore component. Find out more in this article. |
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You should expect us in your inbox Monday – Friday. If you don’t receive an email, please check your spam, or junk folder and “move us” into your primary inbox to ensure you get it each morning.
Disclaimer
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.
Whilst every care is taken, we accept no responsibility or liability for any errors or omissions in any of our content.
The views, thoughts and opinions expressed in our content belong solely to the author or quoted individuals and/or entities, and not necessarily to the author's employer, organisation, committee or other group or individual, or any of our affiliates or brand partners. |
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