| Tuesday 12 April 2022 Good morning Voornaam,
Those who "bought the dip" in MTN after the share price fell based on SIM card news from Nigeria will be smiling now. The share price dropped below R174 and is now trading at around R182, a tidy 4.6% gain. It may not sound like much, but that's what a money market fund will pay you over a year and this return has been achieved in a week. Yesterday's modest uptick in the yellow telecoms giant was driven by the news that MoMo Payment Service Bank has been granted approval by the Central Bank of Nigeria to commence operations. This is a big part of the FinTech strategy and investors were happy to see positive newsflow around the Nigerian operation. Notably, the share price is around 10% down over the past 30 days as the valuation cooled off.
Hyprop is up more than 10% in the past 30 days as the market has warmed up to REITs trading on high y ields, hoping for a further recovery in property and a compression in yields. Remember, a lower yield means a higher share price. The company announced that Allan Gray's stake has moved above 15%, so there's some strong institutional support for this view as well.
In other institutional news, Ninety One has moved above the 5% threshold in Pan African Resources, a strong gold mining house that has posted a gain of over 17% this year.
Pembury Lifestyle Group is in the process of negotiating with its previous auditors regarding outstanding payments. The company needs to raise funds to settle outstanding bills and appoint auditors for the 2019 to 2021 financial year audits. The company has lost almost all its value over the past 5 years and there is no trade in the stock. I included it here to show you that at an extreme, things can get so bad that you can't even pay your auditors.
Another company t rying hard to survive is PSV Holdings. The company is in business rescue and proposals are bouncing among creditors, shareholders and the business rescue practitioners. Without a recapitalisation of PSV as part of the process, it will likely face liquidation with no prospect of payment to any shareholders.
Moving on to today's feature articles, I know already that the most popular link will be my thoughts on the Purple Group results. I've highlighted reasons to feel bullish or bearish about the company based on the latest results. Of course, if we all had the same view on every company, then there wouldn't be a market! We need buyers and sellers to make a market work. Read my views on the latest Purple Group results here.
Don't ignore t he other articles, both of which are packed with insights. Sirius Real Estate has just signed off on a fantastic year that included an expansion to the UK and the successful issuance of corporate bonds, which moved the debt funding to group level rather than individual property level. I've also written on Life Healthcare's voluntary trading update which reflects EBITDA margin improvement in South Africa and deterioration offshore.
Finally, make sure you listen to the latest episode of Magic Markets with the Future Forex team. They joined us to explain the bitcoin arbitrage opportunity that ev ery South African has each year, yet very few take advantage of. Your offshore annual allowance is an asset that most likely goes to waste, as most people cannot use it in full for investments. Bitcoin arbitrage is a powerful way to enhance your income every year and take advantage of the allowance. Learn more by listening to the show at this link.
Have a lovely Tuesday!
The Finance Ghost
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Local and Offshore Market News |
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