Richemont takes a bath

Good Morning Voornaam,

Are you interested in Capital Appreciation or Spear REIT? The next Unlock the Stock event is scheduled for Thursday at midday and as always, attendance is free thanks to our partner A2X. Put on your equity analyst hat for an hour by registering for the event here>>>

Here are some useful podcasts to help you learn:

Sustainable investing with Satrix

In the latest article from Satrix, you can learn about the various ETFs that the group offers to investors who are looking for sustainable / ESG-themed investment products. This ranges from the MSCI World ESG ETF through to the Healthcare Innovation ETF and Smart City Infrastructure ETF.

There's some good stuff in this article about ETFs in general. Learn more here>>>

Richemont takes a 9.5% knock

The risk of buying shares that are trading on a high valuation multiple is that any disappointment in growth can have a significant negative impact on the share price. It's like the top seed crashing out of a tournament in the opening rounds vs. one of the lower seeds doing exactly the same thing. Only one of those things is a negative surprise.

Markets don't like negative surprises, which is why Richemont suffered a 9.5% drop based on quarterly sales numbers. With group sales up 14% as reported or 19% at constant exchange rates, you have to go digging to figure out why the share price dropped. Luckily, I've done the digging for you in Ghost Bites.

As always, I've do ne all the digging you need on SENS and packaged it in one place. In addition to the Richemont update, you can learn about the poor numbers from Anglo American Platinum, the Daybrook Fisheries debt refinancing at Oceana and Orion's drawdown of its debt facilities. There's also news on Datatec, Merafe and Schroder REIT.

It takes just one click to get everything. Read it here>>>

How well do you understand bolt-on acquisitions?

Ghost Mail is all about learning. Companies can grow organically or inorganically, with the latter approach referring to mergers and acquisitions, or M&A as it is commonly known. Within the sphere of acquisitions, we find a strategy built around something called "bolt-on" acquisitions.

If you want to understand how companies grow, you need to know what these are. Using the examples of Salesforce and Home Depot, the latest Ghost Global article explains the concept>>>

Low R18s for the rand

R18 sounds like the age restriction for some of what we've seen happening to the rand in recent months. Thankfully, our currency has recovered back down to the R18.10 level, which is a whole lot better than the near-R20 disaster we saw this year. Dollar weakness last week continued into the new week, although the rand was sideways for the day. There was quite a bit of focus on the Japanese yen, with the Bank of Japan possibly hiking rates soon. If they do, it would be the first hike in nearly two decades!

The same isn't true for South Africa, where hikes have been the order of the day. TreasuryONE notes that the local inflation release will be important this week, although they don't expect it to have a major impact on the MPC decision. The market still expects a final 25 basis points hike in this cycle, with the rand likely to come under pressure if the SARB doesn't follow through.

Happy learning today!

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