| Food is starting to deliver for Naspers and Prosus, the consumer internet subsidiary it listed in Amsterdam last September. Their food delivery operations doubled revenue in the year to March and the groups say they are well positioned for the growing shift to online shopping and services that has been accelerated by the Covid-19 crisis. The thing is, some of the fast growth they are experiencing isn't yet profitable, with food delivery reporting bigger trading losses due to the investment that is being ploughed into the underlying businesses. Tencent remains their biggest investment and in the curiously entitled Trader "iQIYI - a s(c) or (t)reaming deal for Tencent?" Ingham Analytics say speculation that the Chinese internet and gaming giant is in talks with Baidu to take a majority shareholding in iQIYI has boosted its share price - and to a lesser extent those of Prosus and Naspers. To put this in financial context, in a month Tencent has added $100 billion to its market value. Can this be justified? Is there anything in it for Tencent and Baidu? What is the latest on the see-through discount that Prosus and Naspers have to the stake in Tencent? What is the best course of action for traders or long-term investors right now? Find out here. Meanwhile, another local company appears to discovered that Australia is not for the faint-hearted. After swinging to a full-year loss, Adcorp says it's exploring opportunities to exit the country and is already in discussions to sell one of its businesses there. More on those stories in your newsletter today, along with results from Rebosis, a profit warning from CSG Holdings and news that Grand Parade has finally found a buyer for its head office building in Cape Town. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics Ingham Analytics have repeatedly warned in several notes about exposure to banking stocks, in particular the big four. The government's supplementary budget reinforces a bearish stance. They expect ongoing volatility in bank share prices with a weakening bias. The recommendation is to trade the volatility on the big four banks and not take a long-only investment stance. For those interested in having a stake in the banking sector they say Capitec would be one to consider, provided you have the right risk appetite and take a modest exposure in relation to your total portfolio. There are some pointers to consider in "Tito's shocker less of a shocker for Capitec". | 