| Wednesday 30 March 2022 Good morning Voornaam,
At Absa, Jason Quinn has been serving as interim CEO while the bank decided on its future leadership. Quinn will return to his familiar CFO role, making space for Arrie Rautenbach to be appointed as CEO. Rautenbach currently runs the Retail and Business Banking division and has been at Absa since 1997. Punki Modise has been serving as interim CFO while Quinn played the role of interim CEO. Modise will take over as interim chief executive of the Retail and Business Banking division, the seat left open by Rautenbach's promotion. In summary: musical chairs of note for the bank as it seeks to build on significant positive momentum that has recently been achieved.
Concerningly, Thungela warned the market that a third party operating under the name "JSE Limited - Preference Share Department" has been trying to solicit investors for a subscripti on for redeemable preference shares in Thungela. This is a fraudulent effort and Thungela has reported it to the relevant authorities. Please remain skeptical whenever you are approached for investment opportunities, as they are often an attempt by scamsters to get your money. There are numerous legitimate ways to lose your money on the markets instead...just kidding! Ok, not really kidding.
Omnia Holdings is participating in the Sun City conference, an event for analysts whose suits and ties have been gathering dust during the pandemic. The presentation has been made available on the company website. It's worth a look, as Omnia is an interesting business with a presence in 25 countries. The company finds itself right at the core of global geopolitical issues, as Omnia's business touches fertilizer and related products.
Brimstone Investment Corporation has released results for the year ended December 2021. There's a res ounding recovery in HEPS (a loss of 61.5 cents per share has swung to a profit of 298.9 cents per share) and a dividend of 30 cents per share was declared. Importantly, debt was reduced by R1.2 billion with a positive knock-on benefit on finance costs. The intrinsic net asset value per share at 31 December 2021 was R13.14 per share. The discount to INAV at that date was over 50% and yesterday's much higher closing price of R8.00 per share is a discount of below 40%.
Wescoal's proposed name change to Salungano Group Limited has been approved by shareholders. If you're a Wescoal shareholder and you see Salungano on your broker system from 11th April, now you know why.
Insimbi Industrial Holdings released a further trading statement noting a HEPS range for the year ended February 2022 of between 24.93 and 27.01 cents. That's a massive increase vs. 10.36 cents per share in the prior year. The group is trading on a price/ear nings multiple of around 4.3x based on the mid-point of the range.
Rex Trueform released results for the year ended December 2021. Revenue increased by 30.9%, gross margin expanded to 53.5% and the resultant impact on operating profit was a huge increase of 247.9%. In absolute terms, operating profit jumped from R11.2 million to R39.0 million. It gets better the further down the income statement you go, with HEPS up by 958.8% to 126 cents. There's almost no liquidity in the share price. Linked to this company is African and Overseas Enterprises, which reported a spectacular increase in HEPS from 4.2 cents to 117.3 cents as the business recovered.
Today's feature articles are on Barloworld's voluntary update that the market liked, Nampak's voluntary update that the market didn't like and KAP's update that the market hasn't really responded to yet. It's great to see results coming in from the "real economy" where the benefits of operating leverage during a recovery period are being felt. The difference is that some companies have strong balance sheets and others don't.
Take a break from the madness and listen to the latest Magic Markets podcast, in which Mohammed Nalla and I discussed burgers and fairy tales. No jokes - we really did! It turns out that both can be useful investments. Satisfy your curiosity at this link.
Have a wonderful Wednesday!
The Finance Ghost
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Local and Offshore Market News |
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| | | Nampak has a wobbly Although Nampak is performing well, there are a few concerns around the balance sheet recovery that got the market nervous. Read More |
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