| Mediclinic rallied to a six-week high yesterday, leading the gainers in an otherwise down day for the JSE. While its Southern African hospitals are still making less money due to Covid-19 restrictions and the postponement of elective procedures, its operations in the Middle East and Switzerland have been quick to recover. The private hospital group is remaining cautious though due to the risks that still like ahead. At the other end of the scale, Argent Industrial also had a positive day after alerting shareholders to a strong rise in full-year earnings. The company has benefitted from its exposure to the UK, recently announcing another acquisition as it diversifies its operations. Meanwhile, Stenprop has also made another purchase as it focuses its portfolio on multi-let industrial properties in the UK. Also today, Afrimat has presented a formal offer for Unicorn Capital Partners, the old Sentula Mining, on much the same terms as its non-binding expression of interest back in May. And Eastern Platinum has entered a joint-venture arrangement to look at the feasibility of processing platinum group metals found at its Zandtontein chrome tailings operation. It believes the venture is a new potential source of revenue and it comes without any funding obligations. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
Recent notes from Ingham Analytics Tech is bubbling over and with results season upon us investors exposed to stocks such as Alphabet, Amazon, Microsoft and Tesla should be considering taking profits on outsized gains. The disconnect between the US Treasury 10-year and these tech stocks sends alarm bells. Typically, when equity markets go up bond prices decline, and yields rise - which is not happening. And it is entirely down to the handful of tech stocks. "Tech and the Treasury 10s" puts it into perspective. This week Barloworld is in the spotlight in "Saudi Arabian stalking horse". Could there be a takeover in the offing? For the opportunistic trader it's worth pondering and the note gives colour on this. A 23% savings rate in the US, disposable personal income up spending and spending down. What are the implications? "US data provides a chink of light in Covid-19 gloom" reveals some interesting analysis that also has ramifications for the world economy. Will South Africa get an IMF loan, and, if so, will there be terms? "(I)n (M)y (F)ace.....and yours" gives some clues. The note on Capitec called "Rating retreat" issued on 9 July has been a popular download. Ingham Analytics recommended that for those interested in having a stake in the banking sector Capitec is one to consider, unlike the Big Four, and that rand cost averaging is the way to go. The share price has since risen by 10%.
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