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Good Morning Voornaam,

Best Bites:

FirstRand's HEPS for the year ended June will be between 20% and 25% higher - full results due 15th September
Dr Wiese has bought more shares in Brait and in Shoprite, including a R224 million single stock futures exposure to the latter!
Actively managed ETFs (like Cathie Wood's ARK in the US) are coming to the JSE
In Episode 92 of Magic Markets, Craig Antonie of AnBro Capital Investments walked us through the investment case for Patria, an alternative asset management business that is seen as the "Blackstone of La tAm"

Yes, you can raise money on the JSE...

Transaction Capital just raised R1.28 billion in fresh equity from making a few phone calls overnight and in the morning. That's impressive. It's even more impressive that the company only intended to raise R1 billion and that investor appetite for this company is strong enough that the share price still closed higher on the day of the capital raise. This is most unusual.

Don't forget about the debt market. MTN raised R2.565 billion in rand-denominated debt, which helps with the mix of debt on the balance sheet. There's a lot of science that goes into debt raising, interest rate risk management and treasury strategies, which is why MTN issued a mix of three-year, five-year and seven-year notes.

I hold both companies in my core long-term portfolio.

...but only if you are large and in charge

Although we have deep pools of capital in South Africa, they tend to be reserved for larger companies. If the last few years are anything to go by, institutional investors far prefer losing money on overpriced property funds than making money on interesting small caps.

Small caps are somewhat left out in the cold I'm afraid, trading on modest multiples and finding it very difficult to raise capital. The motivation to jump through the regulatory hoops of being a listed company is a lot lower when facing that reality. This is why we are seeing so many delistings.

For more details on these stories, as well as earnings updates from Bell Equipment, Caxton and CTP Publishers and Printers and York Timber among others, be sure to serve up your daily bowl of Ghost Bites at this link.

Sanctions aren't delivering sanctuary

I must be honest, I find the scenes of war to be incredibly distressing, especially once the media agencies were printing pictures of murdered children. As a father to a toddler, I don't cope well with seeing any of that. Other than focusing on the economic impacts, I decided to protect my own mental health by not subjecting myself to those images.

For this reason, I was grateful to see Chris Gilmour's interesting summary of the war in terms of the delayed impact of sanctions, the energy crisis facing Europe and other important nuances. This piece is full of insights and personal opinions rather than images that are guaranteed to ruin your day. You may not agree with everything Gilmo ur puts forward, but it will certainly make you think. Read it here>>>

The dollar softened ahead of the weekend

TreasuryONE notes that Friday saw a softer dollar, possibly due to profit taking on long dollar positions. The rand traded over 1% stronger (closing the day on the right side of R17.30) and the euro stayed comfortably above parity. Wi th the US CPI print due this week, that could be the next catalyst for dollar strength.

Even gold managed to close the week on the front foot. Crude Oil dropped overnight as China implemented further lockdowns, lowering anticipated demand for oil. By close of trade on Friday though, oil was over 2.5% higher.

I hope your week gets off to a great start!

Ghost Bites Vol 88 (22) - Transaction Capital | MTN | Bell | Caxton

Transaction Capital and MTN successfully raised equity and debt capital respectively. Earnings updates came in from FirstRand, Bell, Caxton and York Timber. The JSE has paved the way for actively-managed ETFs.

War in Ukraine - sanctions, gas and cold winters

As the war in Ukraine grinds on and the Ukrainians continue to resist the Russian invasion, Chris Gilmour explains key nuances on the battlefield and in the energy markets.

Save 40% on Who Owns Whom mining sector research

The mining industry has been all the rage this year, with commodity prices driving inflationary pressures across the globe. Ghost Mail readers get a 40% discount on Who Owns Whom research reports, including on this sector.

Magic Markets Ep92: Investing in the LatAm Blackstone

Craig Antonie from AnBro Capital joins us to discuss Patria, an alternative asset management firm in South America and an example of a non-tech holding in the Unicorn portfolio.

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