| Thursday 27 January 2022 Good morning Voornaam,
If you're a Clicks shareholder and you saw the share price drop by 6.4% yesterday, you should note that the share traded "ex-div" which means that the price dropped partially due to the dividend no longer being embedded in the share price as we have almost reached the dividend payment date. This doesn't explain the full drop though, so perhaps the market digested Clicks' result if the vaccines are stripped out of sales to give a more sustainable view of the business.
Adcock Ingram is one of those stocks that technical traders can have a bit of fun with. It doesn't necessarily do much for long-term holders (up nearly 14% over the past year but down around 19% over 3 years), but over short periods it makes lots of small moves in ranges and channels. The company has updated its trading statement for the six months to December 2021, noting that HEPs will increase by between 27% and 30%. The company has been helped by the return o f good ol' fashioned flu and by hospital procedures returning to normal.
Vukile offered R300 million worth of its B ordinary shares in the merged Fairvest - Arrowhead entity to the market. This was placed through an accelerated bookbuild. R400 million was raised in the end at a share price of 330 cents per share, so strong bids drove a decision by the company to free up more cash than expected.
There's potential trouble at Telkom, with the share price down over 5% in the past 5 days. A Government Gazette has given the Special Investigative Unit authority to investigate the disposals of certain businesses dating back to 2006. This is a legacy issue but will still distract management at a time when the company is in a battle against its bigger competitors.
Invicta is in the process of selling the Samrand Business Park to Pathisa Properties. A R16 million deposit has been paid and Invicta wi ll allow the remaining R10.5 million to be settled through monthly instalments of R600,000.
Europa Metals, a European-focused lead, zinc and silver developer, is reducing costs by switching three of its directors to a remuneration structure where half of their earnings will be paid by the issue of new shares. This frees up cash to be spent on project-related expenditure and existing operations. Junior mining is quite possibly the toughest sector in the world. The market cap of Europe Metals is below R80 million and the share price has lost 96% of its value over 5 years.
Eastern Platinum Limited has terminated its agreement with Advanced Beneficiation Technologies, as several milestones under the agreement and linked to the Zandfontein tailings dam have not been achieved.
Today's first feature article is on Harmony, which has released poor guidance due to issues in the Hidden Valley operation in Papua New Guinea. They should rename it Hidden Costs. Read about the issues here.
The other feature article is on Quilter, the asset management business that was born out of the extensive restructure and corporate break-up of Old Mutual. Despite strong growth in its assets under management and administration, the market punished the company.
Remember to listen to Episode 59 of Magic Markets, in which we discussed an overview of alternative assets and how their low correlation to equities can be useful in a portfolio. You'll find the episode here.
Have a good day!
The Finance Ghost
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