Bell tells it how it is

Good Morning Voornaam,

Last week was busy - but I can help you get up to date in a matter of minutes. In this week's edition of the Ghost Wrap podcast, I looked at a few companies that really do seem to be on the receiving end of the fickle finger of fate. Metair, York, Nampak and EOH are at varying stages of tough journeys. I also touched on the latest news from Absa, RCL Foods, Bell Equipment and Barloworld. In just over 8 minutes, you'll know what's going on at these companies by listening to this episode of Ghost Wrap, brought to you by Mazars.

And if you're looking to understand more about the equity layer in solar investing, Episode 118 of Magic Markets features Saul Maserow and Dino Zuccollo of Westbrooke Alternative Asset Management. They joined us to talk through an asset class that has shot to prominence in South Africa thanks to Eskom, with Westbrooke taking a different approach in terms of the capital stack. Find it here>>>

It pays to dig into the earnings release

Companies take different approaches with the short-form announcement vs. th e detailed earnings release. It always pays to click through to the full release and read it carefully, especially the outlook section.

Bell Equipment released results on Friday and the effect of load shedding was laid bare in a paragraph that talks about how the company is thinking about its manufacturing and procurement strategy in light (or is that dark?) of our lack of electricity. The outlook section makes for happier reading at least, with the company still experiencing strong demand for products.

I also focused on Absa's B-BBEE deal, which I think is a missed opportunity to have added another structure to the investable universe of B-BBEE schemes for retail investors. A bank is perfect for this because the cost of funding can be so low. But alas, only a CSI trust and staff scheme are included.

There is also an important update from Capital Appreciationnt>, with the company giving the market fair warning that although revenue is doing well, profitability has come under pressure because of the investment required to deliver this phase in the company's growth.

For these updates and news from Advanced Health, Kore Potash, OUTsurance, Renergen and Tongaat Hulett, pour yourself a bowl of Ghost Bites here>>>

US inflation continues to fall

Consumer prices rose less than expected in February, wit h the annual rise in core PCE down to 4.6% from 4.7% in January. This is the lowest it has been since the end of 2021. TreasuryONE points out that a chart of inflation indicators (CPI / PPI / PCE) shows that all of them are trending lower, albeit at a far lower pace than they showed on the way up. Data points like these may prompt the Fed to stop its hiking cycle.

On Friday, the rand was still benefitting from the bigger surprise rate hike. Trading at around R17.74 at close of play, some consolidation is likely at these levels.

Other stuff to improve your Monday

As always, there's plenty to keep you busy in Ghost Mail:

Have a terrific day!

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