Monday 14 June 2021
Good morning Voornaam,
Friday afternoon can be a strange time on SENS.
Companies sometimes use this opportunity to attempt to quietly release bad news, hoping the weekend papers won't pick it up in time and that everyone is already on their second glass of wine at lunch.
At 5pm on Friday, Famous Brands casually announced that the group financial director has resigned. The effective date is 30 November, as Lebo Nthla has a notice period that is longer than some marriages. Still, this isn't encouraging for a group that has walked through fire in the past year.
With no successor named in the announcement, this decision must have come as a surprise to the directors of Famous Brands. As the share price is still trading 25% lower than at the start of 2020, this isn't the type of news that investors were hoping for.
InceConnect readers may recall that there was a flurry of property fund news last week, with REITs and other property funds releasing results or trading statements. REITs are complicated and difficult to understand unless you've worked with them in practice.
For this reason, Ghost Mail tomorrow morning will focus on explaining how REITs work and how investors should think about their valuations. Ghost Mail is my weekly mailer where I focus on explaining concepts and market themes in more detail, which will give you an even greater understanding and appreciation of the stories you read in InceConnect.
It's free and you can sign up here.
The lead story this morning is on the Naspers - Prosus debacle, which has reached the point where 36 asset managers are taking the activist route to try and address the governance concerns and massive discount to NAV. I explain the structure and the discount in the article, which will help you understand the excellent interview that Alex Hogg of BizNews had with some of these asset managers.
The latest episode of the Magic Markets podcast featured Wandile Sihlobo as our guest. He is an agricultural economist and an expert on this exciting sector in South Africa. If you've ever wondered which products we are globally competitive in and what the impact of a stronger rand might be, make sure you listen to the show. I learnt so much from him and you will as well.
Sticking with the agriculture theme, Omnia Holdings released a trading statement which I discuss this morning. I also look at SAB Zenzele Kabili, with a share price that is so far removed from the net asset value (NAV) per share that the board has even put out a SENS reminding the market what the NAV is!
Finally, Chris Gilmour brings you up to speed with the critical economic news globally and prepares you for the week ahead.
It's a new week which means new investment and business opportunities. Make it count!
The Finance Ghost
Local and Offshore Market News
Caught in their own web
The architects of the Naspers / Prosus web are fighting battles on all fronts, as asset managers take the activist route. Read More
MAGIC MARKETS PODCAST: Investing in Agri
Wandile Sihlobo is an expert on the agriculture sector in South Africa. His insights on the latest episode of Magic Markets are invaluable. Read More
Omnia's fertile balance sheet
After a monumental recovery year and an appreciable jump in the share price, Omnia is ready to make big decisions about capital allocation. Read More
SAB Zenzele Kabili - our very own Gamestop?
The NAV of each Zenzele Kabili share is R60. The share price is R180. It's not hard to see the potential problems here. Read More
The Week Ahead
All news is good news for the US equity markets. The S&P 500 reaches a new record high. Read More
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