| Grand Parade Investments' shares closed a little higher yesterday after it said a deal to sell its remaining stake in Sun Slots to Sun International had lapsed. Sun International's declined. While I thought the price movement should have gone the other way due to Grand Parade's strategy to realise value for shareholders and Sun International's tight cash position, one market commentator Tweeted that the R504 million price tag undervalued the business. Even though Sun International is going cap in hand to shareholders with a R1.2 billion rights issue, perhaps getting full control of a cash-generative business like Sun Slots at a good price was still to its advantage. Neither company said whether they would take a second stab at the deal, which failed to get gambling board approval by Tuesday's deadline. Meanwhile, Northam Platinum has been making good use of the cash it's been generating, buying more of the Zambezi Platinum preference shares that have been standing in the way of dividend payments to its shareholders. It's now met the target it set itself so payouts could be in the pipeline. Also today, packaging and printing business Novus has prepared shareholders for a full-year basic loss and reduced headline earnings and Pan African Resources wants to diversify its shareholder base with American Depositary Receipts. Finally, as it's Friday, look out for all the latest mergers and acquisitions news from DealMakers too. I hope you have a good weekend. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics - March South African Reserve Bank accounts Financial plumbing is one the Ingham Analytics core competencies and this latest note on the South African Reserve Bank, entitled "Is the Reserve Bank Father Christmas?" will be of interest in that regard, and the implications for customers of commercial banks, investors in JSE listed banks - and citizens who want a stable monetary backdrop as they go about their business. South Africa isn't Zimbabwe - yet. In the context of Covid-19, has the local central bank got the capability to be another Federal Reserve? Can Governor Kganyago do a Chairman Powell? What is the size of the balance sheet? How far can a central bank mandate extend? Are their potential risks to my bank deposit or my JSE shares? Investors in mining will find the Ingham Analytics updated note on Anglo American of interest. "Cold on coal" prepares investors for rather depressed result out of Anglo's coal assets this financial year. But the iron ore picture is bright, led by Kumba and Minas-Rio in Brazil. Ingham Analytics' earnings estimate for 2020 has been lowered, as has the dividend, but the 2021 earnings estimate has been raised. Ingham Analytics do say that Anglo American has quality assets and the dividend seems secure, unlike several other listed entities that are halting payments in order to conserve cash due to Covid-19. With Prosus and Naspers having reported this week, "iQIYI - a s(c) or (t)reaming deal for Tencent?" will be of interest. However, as Ingham Analytics have warned before, the see-through discount to the stake in Tencent is under pressure due to losses and cash outflow. But there are share trading tactics to take advantage of. | 