| Good morning Voornaam,
Pan African Resources took advantage of the gold price and DRDGOLD was saved by it. Lyft short sellers were slaughtered by a typo. The Magic Markets podcast showcases the momentum in alternative assets, together with Westbrooke. There's a brand new Ghost Wrap podcast bringing you the latest on Sasol, ArcelorMittal, Sappi, Curro and British American Tobacco - available here Are you a founder of a business? Do you want to know more about "bootstrapping" vs. raising funding? The next bizval webinar will tackle this topic. Attendance is free for this webinar scheduled for 21st February at midday, but you need to register here>>>
Local company news:
Johannesburg was built on a foundation of gold mining, yet here we are with DRDGOLD giving us a clear view of just how difficult it is to mine the gold tailings found on the outskirts of the city. Not only are there security problems, but there are delays for new projects from water licences and community interference. If it wasn't for the higher gold price, the latest results would've been ugly.
There are thankfully no such issues for Pan African Resources, where production was higher at exactly the right time. There's a bullish undertone in the announcement about the rest of the financial year as well.
This brings us neatly to a group that specialises in teeth and toilets, along with payroll services and credit lending. In other words, they don't actually specialise in anything. Universal Partners has surely the most unusual portfolio on the JSE, which always makes the updates fun to read.
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>>>
You can also enjoy my latest Namibian radio segment, covering Santam, Transaction Capital, Cashbuild, Anglo American and why it was so lucrative to be an early employee at groups like Naspers. Find it here>>>
International company news:
I remember watching a Looney Tunes cartoon as a kid where an incredibly expensive piece of art gets broken. The characters look at the price tag (ridiculously along the lines of $1,000,000,000) and conclude that none of the zeros matter anyway. They then panic about where they will find one dollar to pay back the owner!
Those were the days, hey.
At ride hailing business Lyft, the zeros don't seem to matter either. A casual typo in the earnings release suggested that adjusted EBITDA margin would expand by 500 basis points. In reality, the expansion is 50 basis points.
What's a zero between friends?
Well, the share price initial traded as much as 67% higher before settling at a 20% gain. Even 20% is a painful outcome for short sellers, but a 67% jump based on a nonsense number could've wiped short sellers out.
Much of this is the danger of after-hours trading, a reminder that everything in the US is bigger but not always better. The press release was corrected soon after it went out, but not before the wild ride in after-hours activity.
The craziness of public markets is part of why alternative assets have become so popular. Westbrooke is no stranger to Magic Markets listeners and the alternative asset manager just achieved a record year in 2023.
To understand the favourable conditions for alternatives and whether they are set to continue, Dino Zuccollo of Westbrooke was the guest on the latest Magic Markets podcast. You absolutely don't want to miss it! Listen to it here>>>
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 dollar eased off the three-month high levels achieved after the CPI release. Markets consolidated ahead of the next round of US economic data, with US retail sales and weekly jobless claims due today.
UK Q4 GDP data is also due today. Japan's Q4 GDP data came out earlier this morning and showed the economy falling into recession.
The rand got all the way to R19.19 yesterday before settling down to trade at R19.06 this morning.
Gold is at $1,996. In PGMs, palladium jumped 8% yesterday after some short covering based on a five-year low for the metal the previous day. Weak demand from the automotive industry is the concern for PGMS.
Despite tensions in the Middle East, oil prices fell yesterday based on higher US oil inventories. Brent Crude is at $81.19 this morning.
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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