| Good morning Voornaam, Earlier this year, I wrote about the market response to updates from Naspers/Prosus as well as Pan African Resources. In both cases, I bought shares as I felt that there was a clear overreaction from punters who hit the sell button. Those positions are up 41.6% and 31.7% respectively. Not bad.
What did they have in common? In my opinion, the market just didn't read the facts. There's far too much willingness to sell shares based on a single data point, without investors putting in the effort to understand the story. The updates yesterday from Naspers/Prosus and Pan African Resources show the value of doing the detailed reading and looking to the future.
Speaking of the future, at this point it really feels like MultiChoice is fully reliant on the Canal+ deal going ahead. They are throwing everything at Showmax, while stubbornly increasing prices in their linear business and shedding subscribers.
Finally, it looks like KKR and Stonepeak came out on top in the Assura bidding war, with the Primary Health Properties merger opportunity failing to convince the Assura board.
Get the details on all these updates and the Nibbles in Ghost Bites at this
link>>>
The capital markets are beautiful things, which is exactly why you read Ghost Mail every day. Francois Gouws (CEO of PSG Financial Services) shares that belief, along with a passion to keep improving things in South Africa for the benefit of all who live here. The Think Big South Africa competition is an invitation for you to get involved in making your ideas heard. And with a R500k first prize, it's a very lucrative use of your time! Find out more in this podcast with Francois Gouws.
For insights into the mining sector, specifically PGMs and chrome, you can join Tharisa on Unlock the Stock at midday today. This is a wonderful opportunity to engage directly with the management team. Attendance is free but you must register here>>>
Have a great day! |
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| SATRIX: Life after COVID - a five-year review of the markets |
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| | | Five years ago, the world was a wild place. We were "staying home and staying safe" - and global central banks were cutting rates dramatically in an effort to stimulate economies under impossible circumstances.
With a great selection of statistics to share with the listeners, Siyabulela Nomoyi of Satrix was a wealth of knowledge in this podcast about how markets have performed in recent years, particularly in terms of which indices did well and which were disappointing.
Get a healthy dose of market insights at this link>>> |
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| PODCAST: Capital Markets in South Africa - the Think Big South Africa Competition |
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| PSG Financial Services is the proud sponsor of the Think Big South Africa competition, in collaboration with Economic Research Southern Africa (ERSA).
PSG wants to encourage South Africans to get involved in their country at the highest level, bringing forward policy ideas and constructive solutions to drive conversations and real change in our country. PSG CEO Francois Gouws joined me to explain why they are such strong supporters of this initiative.
Enjoy it here>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Pan African Resources and Naspers/Prosus have both been winners for me this year, with latest numbers showing why. MultiChoice is in much pain. Assura is going ahead with the KKR/Stonepeak offer, not the Primary Health Properties merger. Get the details in Ghost Bites>>> |
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| Unlock the Stock - Greencoat Renewables |
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| In the 55th edition of Unlock the Stock, Greencoat Renewables joined us for the first time ahead of their debut on the JSE. The recording of the management presentation and interactive Q&A is available at this link>>> |
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| DOMINIQUE OLIVIER - Klarna: a canary in the American debt coal mine |
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| | | When lunch needs a payment plan, something’s gone sideways. Klarna’s rollercoaster ride through the American dream is a cautionary tale with extra guac. All is not well in America, as Dominique Olivier explains here>>>
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| INVESTEC PODCAST: No Ordinary Wednesday - a 20-year perspective on global investing |
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| | | Twenty years on, the managers of the Investec UCITS World Axis Core Fund reflect on what two decades of global investing have taught them and what investors should expect next. Join Investec Investment Management’s Head of Multi-Manager Investments Ryan Friedman and Fund Manager Bronwen Trower in conversation with Jeremy Maggs in this podcast>>> |
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| International Business Snippet: |
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| Here's a throwback from way back in the tech sector: Oracle! The company reported results that exceeded estimates, with revenue up 11% and earnings per share coming in at $1.70 vs. expected earnings of $1.64. Cloud infrastructure did the heavy lifting of course, with an expectation from the company that this source of revenue will increase by over 70% in the 2026 fiscal year.
Co-founder Larry Ellison is quoted as saying that he's "never seen anything remotely like this" in the context of cloud demand. The jury is still out on what the real return on investment for corporates is, with real risk here that demand for cloud slows down just as supply ramps up.
Recent research in Magic Markets Premium has covered Intel, Waste Management (possibly the best company you've never heard of), Novo Nordisk, Simon Property Group, TJX and NVIDIA. Our focus is on giving you broad exposure to global stocks, with enough underlying detail to help you make better decisions and learn tons along the way. The entire library is available for just R99/month, a deliberate strategy to make it as accessible as possible. Invest in yourself and give it a try! |
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| Magic Markets: Saudi Aramco and Ferrari |
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| | | After a few weeks of Formula One races every weekend, many sports fans have been bombarded with two brands: Saudi Aramco and Ferrari. This gave us a great opportunity to talk about both listed companies – from fossil fuels to fast cars!
Our view is that Ferrari is without a doubt the better business in terms of brand strength and long-term prospects, but why is that? And just how much does Formula One actually matter to them anyway?
We covered these topics here>>> |
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| Macroeconomic indicators and macro update |
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| US and European futures, along with most Asian equity markets, are down today amid rising geopolitical tensions in the Middle East, which have triggered risk aversion and profit-taking following recent near-term highs.
The escalation stems from the intensifying conflict between Israel and Iran. Israel is reportedly preparing a military strike on Iran's nuclear facilities as nuclear deal talks remain stalled, while Iran has threatened to target US bases in the region if attacked first.
Meanwhile, the dollar index is weakening further, reflecting signs that President Donald Trump may adopt a softer approach in tariff negotiations and growing expectations of Federal Reserve rate cuts, supported by yesterday’s softer-than-expected US inflation data.
The South African rand remains near its strongest levels of the year against the dollar, but the JSE All Share Index is expected to open lower in line with pressured global markets.
Oil prices rallied nearly 4% yesterday due to the geopolitical risks but have since steadied this morning. Gold prices have also risen, benefiting from renewed safe-haven demand and a softer dollar.
This update is provided by Shaun Murison. Connect with him on LinkedIn here.
Key Indicators: USD/ZAR R17.78/$ | US 10yr 4.41% | Gold $3,375/oz | Platinum $1,254/oz | Brent Crude $66.77 |
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