| Good morning Voornaam,
Welcome to a new week and thanks for making time to read Ghost Mail today. It's great having you here.
Monday morning means a new column from Dominique Olivier. She writes on a wide variety of fascinating topics. This week, Dominique decided to show us just how slippery the olive oil industry is. Where there is money to be made, there are humans ready to find unethical ways to shorten the path to riches. Read about it here>>>
I also have a new episode of Ghost Wrap for you, brought to you by Mazars. In case you haven't tried it out yet, this podcast needs just five minutes of your time to get you up to date on five local companies. The latest episode features Bell Equipment, MTN, AVI, Truworths and De Beers. Get it here>>>
And for longer podcast listens, check out Magic Markets and a recap on Dexcom with Justine Brophy of AnBro, or Ghost Stories with Nico Katzke of Satrix for a broad market chat that included him interviewing me!
There's also a double-header of Unlock the Stock on Thursday. You can attend the Karooooo event at midday and/or the TWK event soon thereafter at 13:15. Registration for each event is separate. Unlock the Stock is brought to you by A2X and you can register to attend here>>>
Enjoy your Ghost Mail!
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| BRAND NEW: Magic Markets podcast |
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| In Episode 150 of Magic Markets, we revisited diabetes management company Dexcom with the help of Justine Brophy from AnBro Capital.
This is a great example of looking through the share price volatility to understand how the underlying business is performing. It's always important to keep testing the financial and strategic thesis for your positions.
This isn't just about Dexcom. It's about sharpening your approach. This podcast is brought to you by AnBro. |
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| BRAND NEW:
Liquid gold: why gangsters choose olives over cocaine
(by Dominique Olivier) |
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| | | Miniature cameras hidden in tie pins. Bribery money counted under tables. Swiss bank accounts, Turkish tankers and Caribbean shell companies.
No, we’re not talking about the cocaine trade. We’re talking about the Italian agromafia. |
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| BRAND NEW: Ghost Wrap podcast
(Bell Equipment | MTN | AVI | Truworths | De Beers) |
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| | | The latest Ghost Wrap podcast needs just a few minutes of your time to get you up to date on five companies across a variety of sectors. Ghost Wrap is brought to you by Mazars. |
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| Bell Equipment and Calgro M3 returned to the Unlock the Stock platform in a joint session to share insights into the recent numbers and the strategic outlook.
You can watch the recording here, thanks to our partner A2X. |
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| LATEST: Ghost Stories podcast with Nico Katzke of Satrix |
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| | | Nico Katzke is no stranger to Ghost Stories listeners. There's always so much to learn from him about markets and investing. This time, you also get to enjoy him putting me through my paces in the second half of the show. |
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| LATEST: The ETF revolution - views from Satrix |
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| Kingsley Williams of Satrix gives us nine reasons why the boom in ETFs makes sense.
In my opinion, every investor should be using ETFs in a portfolio. This is why I'm always grateful to Satrix for their insights in Ghost Mail. |
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| DAILY: TreasuryONE Market Update The story of last week was one of the US market looking beyond the Fed's cautious stance on easing monetary policies. Despite Fed Chair Powell's views on potential future tightening, equity markets recovered and bond yields dropped, with the dollar's rise pausing. Some optimism returned to the market, with even Bitcoin reaching its highest price in 18 months!
There are also clues in the usage of the Fed's overnight reverse repurchase agreement facility that suggest a short-term shift in investor strategies based on expectations that the Fed might be nearing the end of its rate-hiking cycle.
But in South Africa, the rand consolidated after a strong recent rally and we felt the impact of commodities having a poor week based on data coming out of China.
This morning, the rand is at R18.76, gold is trading at $1,935 an ounce and Brent Crude is hanging on above $80 a barrel. The US 10-year yield is 4.66%. |
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| | | Get the latest on Eastern Platinum, ISA Holdings, Montauk Renewables, Quantum Foods, RFG Holdings, Richemont and The Foschini Group to keep you up to date. It's all available with a single click in Ghost Bites. |
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| What goes up, might slow down Value investors will often talk about how a company being on the front cover of a magazine (or two) is usually a strong signal that the top is in for that particular share price. I remember when luxury was all the rage recently, with LVMH and Bernard Arnault making headlines.
The stock was trading at the 52-week high of 905 euros at the time of the magazines. The current price is below 650 euros. Without a doubt, an item at your local Louis Vuitton store would've been a better investment this year. The long-term picture is very different though, with LVMH having produced spectacular returns over most time periods.
Richemont has lagged LVMH. When times are good, LVMH seems to do better. When things get worse, Richemont seems to get hit harder.
The interesting thing is that in my view, Richemont is more of a pure-play view on Luxury than LVMH. Half of the "Maisons" in Richemont have names that are (1) impossible to pronounce unless you are French and (2) unheard of unless you're on the VIP list for special edition Ferrari launches. These are timepieces that cost as much as a family home. It puts a Louis Vuitton handbag into perspective.
And as you dig deeper into LVMH, you find businesses that are more affluent than luxury. Sephora is a chain of cosmetics stores. The alcohol businesses are for those trying to impress at the bar, not those who own the bar and half the surrounding suburbs. We've researched LVMH in detail in Magic Markets Premium before and we recently recapped the company (subscribers only - but since we did a decent job of calling the top in LVMH, perhaps it's time you subscribed to Magic Markets Premium?)
Going back to Richemont, the latest results suggest a slowdown outside of Asia and a drop in sales in the Americas. Despite the glowing language used by Richemont to describe the results, the market had a different view and the share price fell.
I've also covered important earnings updates from RFG Holdings and The Foschini Group, with the former doing really well in this environment and the latter doing better than the market was expecting, but still suffering a significant drop in headline earnings.
Other updates in Ghost Bites this morning include Eastern Platinum, ISA Holdings, Montauk Renewables and Quantum Foods.
Read Ghost Bites at this link>>>
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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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