| Good morning Voornaam, Last chance saloon to register for the PBT Group Unlock the Stock session at 12pm today - and remember to bring your questions! The group operates in the technology field and has had an excellent few years. Personally, I want to ask them all about why the margins are coming under pressure at the moment. Whatever your area of focus is, you can only ask questions if you attend the live event by registering here>>>
Fresh out the oven:
Ghost Bites: Bidvest is looking to sell its banking operations and focus its efforts on the other divisions. NEPI Rockcastle is on the way out of Serbia. Texton is selling down the US fund investment. Brikor might be delisting. You can get all the details in Ghost Bites>>>
Ghost Wrap: You need just five minutes to get the latest on a few stocks that I think are worth watching in a GNU environment. KAP, Sephaku Holdings, ArcelorMittal and Nampak are all waiting for you, brought to you by Forvis Mazars. Listen to it here>>> 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>>> 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>>>
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>>>
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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:
Bidvest is busy at the moment, with a deal to acquire an offshore hygiene services business and a plan to sell the local bank. If you have some spare Randelas lying around and you've always wanted to own a bank, you know who to call.
In the property sector, NEPI Rockcastle is selling its only remaining investment in Serbia. The company only wants to be in investment grade countries, which is interesting. As for Texton, they are selling down their investment in a US real estate fund. Although the investment gave a great return, I have bigger worries about the capital allocation process at Texton. They should be recycling capital into share buybacks, but I don't think it's going to happen.
Finally, Brikor has indicated that it might look to delist from the JSE. I can't blame them, as it makes sense for the controlling shareholder to operate the business in private.
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:
After giving you an update on US quarterly sales at General Motors and Toyota yesterday, today's honours go to Ford. Well, maybe not honours - there's not much to get excited about with a 1% year-on-year growth rate. Electric vehicle sales were up 61% and hybrid sales were up 56%, in both cases still off a low base.
To give you an idea of the size differential, Ford sold just under 200,000 F-Series trucks ('Murica-sized bakkies) in the quarter. Electric vehicle sales were under 24,000.
At least the sale trajectory is green, which is more than some competitors can say.
And in news from Down Under, McDonald's in Australia has had to cut the breakfast hours by 90 minutes in response to a nationwide egg shortage driven by avian influenza. Coles and Woolworths have imposed restrictions on the number of egg cartons per customer.
In summary: all challenges in Australia can usually be traced to an animal that either wants to eat you (the more common situation) or helps feed you.
If you want to become a better stock picker, Magic Markets Premium is perfect for you. We covered Acushnet this 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 Softer US economic data has increased the probability of a September rate cut in the world’s largest economy. In turn we have seen the US dollar and yields soften and equity markets firm, with the S&P500 and Nasdaq100 reaching new all-time high territory overnight.
The rand has started to rebound from recent lows.
European equity markets appear unperturbed by today’s UK elections, with major benchmarks continuing to trade in positive territory. Asian benchmarks are also firmer on the day, taking their lead from US markets and the prospect of further monetary easing in China. On balance we are expecting a positive start for our local bourse the JSE All-Share Index.
Gold has renewed short term gains, supported by the softer dollar.
Oil prices have started to correct from overbought territory on the prospect of a slowing US economy, that’s after manufacturing and ADP employment data came in weaker than expected yesterday.
The 4th of July sees a banking holiday in the US and general elections in the UK. There is no other high impact data scheduled for today.
Key Indicators: USD/ZAR R18.43/$ | US 10yr 4.35% | Gold $2,357/oz | Platinum $1,005/oz | Brent Crude $86.60
The macroeconomic update is based on IG's morning call update |
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