| Drinks giant Distell is keen to continue engaging in industry discussions with the government on how they can minimise the long-term effect of alcohol abuse on society. It believes that targeted interventions will be more effective than outright prohibition or other blunt instruments. The ban on alcohol sales during the early stages of lockdown is apparent in Distell's full-year results. It estimates it cost it nearly 20% of its trading year, impacting the sale of brands that include Nederburg, Hunters, Savanna, Klipdrift and perennial favourite Amarula - not just in SA but regionally and to export markets too. The ban on alcohol sales also weighed on Massmart's results for the period to end-June as it contended with a number of other issues it is addressing as part of its turnaround strategy. As forecast, however, Sibanye-Stillwater delivered a strong first-half performance, with stronger metals prices helping it reduce debt and reinstate dividend payments. More on those stories to follow in your final newsletter for the week, along with results from Grindrod and Blue Label Telecoms, both of which claim resilient performances despite Covid-19. This week's Thorts, brought to you by DealMakers, looks at how fund managers can benefit from utilising escrow. Finally, as the pandemic rages on, leaving in its wake a trail of consequences much more long lasting than the physical ailments of the virus, it has become clear that we will all need to support each other if we are to rebuild. A renewed sense of community has been ignited in our collective psyche. And feeling like a community is important, because robust, connected communities are the cornerstone of engaged societies. You are part of that community - through your engagement on iHIVE, you are connected to a broader South African community that is working towards building a stronger, more stable society for us all. Click HERE to donate. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics It is time to revisit banking. Three of the big four have all reported and, as with the latest Reserve Bank BA 900s, the picture isn't pretty. This Covid-19 horror movie has further to play out. But capital cushions are reasonable even if return on equity is lousy. South African banks do compare favourably with large US banks on capital adequacy. In "Skin on the bones", Ingham Analytics reiterate that they are on record as long recommending avoiding banks' but for the brave wishing to venture back in there is a stock for the radar - provided the price is right. If you are in the US and have $500 in your pocket, you could buy an Apple watch or one of their cheapest phones like the iPhone SE or maybe an iPad Air. Fancy a MacBook Pro? That'll be $3,000. You could of course buy their shares for $500 each. Question is, would you want to? Who on earth is going to keep forking out small fortunes with regularity? What about those earnings? In "An Apple a day...?" Ingham Analytics reckon that in F2020 Apple will have made 12% in extra earnings per share since F2018 whilst in the same period buying back 13% of their shares - so pretty much nowhere. And today you're paying 70% more for that same earnings stream than you were in January. Go figure. | 