| If you're a corporate entity that is looking to finance or refinance a solar installation, then reach out to Jaltech. They are in the final stages of closing their Section 12B solar fund and can assist you with your funding needs. Click here to contact them>>> You've still got time to register for Unlock the Stock on Thursday at midday with Calgro M3, giving you the chance to wear a sell-side analyst hat and ask questions directly to management. The event is brought to you by A2X and attendance is free. You just need to register at this link>>> Dololo dividends
Dololo is possibly my favourite South African slang word. It loosely describes the concept of "nothing" and is used in a delicious way in sentences. There's nothing delicious about the results at Astral Foods, with the business in all kinds of pain thanks to our government's spectacular track record in service delivery. Profits in the prior interim period were R785 million and in the latest period, Astral spent R741 million on load shedding. It was almost a case of dololo profits as well, with the Feed Division pulling the group into the green - barely. To make it worse, net working capital has jumped sharply as the balance sheet has come under pressure, so the cash position has deteriorated significantly in the pa st six months. It's fascinating to see various themes coming through in the company updates yesterday. For example, Balwin's earnings report lays bare the trend of semigration and the impact it is having on the property market in both the Gauteng and coastal regions, particularly the Western Cape. I semigrated around 8 years ago (a 5-star experience that I would highly recommend) and I cannot believe the growth that I've witnessed down here, along with the pressure on the residential property market around Cape Town. Another company with interesting insights was Famous Brands, particularly around how sit-down evening meals have not recovered to pre-Covid levels. Where bookings are being made, they are happening earlier. I have a strong theory here that people were busy in the pandemic staying home, staying safe and making more people. Fast forward a couple of years and trust me, the fun stops after 6pm in a restaurant with a toddler. But my favourite of all yesterday was Netcare, a company that has chosen to take the concept of normalised EBITDA to an entirely new and ridiculous level. Let's just say that if every company on the JSE adjusted for this particular item, they would all be shooting the lights out. To find out what it is and to get updates on the likes of Adcorp, Barloworld, Premier, Stefanutti Stocks and Spear REIT, click here to read Ghost Bites>>> And remember, you can stay on top of the most interesting stories of the past week on the JSE by listening to the Ghost Wrap podcast. Brought to you by Mazars, the latest episode features my views on Dis-Chem, Grindrod Shipping, NEPI Rockcastle, Telkom, Nampak, Purple Group and Investec, Find it here>>> Learn from the prosOne thing that Ghost Mail definitely can't be accused of is dololo insights. To keep your knowledge base moving in the right direction, you should read these articles: Nico Katzke of Satrix gives a visual and powerful explanation of compound returns in action and how critical it is to take equity risk over the long term. Read it here>>>The team at Trive South Africa looks at the energy sector with four great company examples including fundamental and technical analysis. The focus is on Sasol, Chevron, Renergen and Brookfield Renewable Partners. Read it here>>> TreasuryONE has written a piece on what the debt ceiling in the US is and why it matters. Learn here>>>Audio and visualIf you're in the mood to watch something, then the recording of the recent TreasuryONE webinar on the state of the rand is a great choice. You'll learn so much about what truly drives our currency market. Find it here>>> Bookmark the latest episode of Magic Markets for one of your drives this week, with Craig Antonie of AnBro Capital Investments joining us to talk about two stocks on their watchlist. You've probably not heard of either, as AnBro focuses on offshore markets and looks well beyond household names. To learn about International Flavors and Fragrances, as well as Runway Growth Finance, listen to the show>>> Know your value with bizvalIf you are a business owner, you would be foolish to miss the promotion we are running at bizval this month. For the rest of May, our bizval Live valuation service is absolutely free. This gives you a way to value your company at zero cost, a gift valued at R5,000! You must simply use the code KNOWYOURVALUE on checkout for a bizval Live valuation at this link>>> The rand claws its way back - but only slightlyLook, a 1% gain in the rand is a whole lot better than what we've seen recently. Our currency is now hovering between the R19.00 and R19.50 range. It's really not long ago that TreasuryONE was indicating a range of R18.00 to R18.50, until the issues with the US - South Africa relationship caused a blowout in the currency. We remain massively disconnected from other emerging markets. The dollar was relatively range bound on the day against its counterparts, which is likely the only reason that the rand held on. Notably, gold struggled to gain any ground as Fed speakers talked about interest rates remaining higher for longer. Copper contracts traded at multiple-week lows, which isn't a happy indicator of economic activity. If only our country was as rich as the content in Ghost Mail, so many problems would be solved! Have a lovely Tuesday. | 