| Good morning Voornaam, The market has something for everyone. For example, Absa just released earnings that reflect double-digit growth in earnings, yet the multiple is downtrodden once more and the dividend yield would embarrass many property funds once you adjust for the tax differences. The market is pricing in tough times for Absa. Value investors love that kind of thing, with Absa surely on their radar at the moment.
Then, you get growth stocks. These are the high-flyers with exciting business models, like Homechoice and its fintech offering. On the US market, these tend to trade at multiples that make you catch your breath after reading them. In mid-cap land on the JSE, particularly due to low liquidity, you can buy them at similar multiples to "boring" old Absa. Opportunity? Quite possibly. To learn more about Homechoice directly from the management team, you should register to attend Unlock the Stock at 12pm tomorrow. As always, attendance is free!
There was a lot of other interesting news yesterday as well. Attacq's earnings are through the roof, driven by underlying property fundamentals as well as corporate actions. Over at Clientèle, they've painted an extremely sobering picture of lower-income South Africans. The great promises of the GNU aren't coming to fruition for most people.
In other property news, Hyprop is back to paying an interim dividend (rejoice!) and Sirius Real Estate sold a property at a premium to its value on the balance sheet. Vukile is pulling the trigger on the Bonaire acquisition in Spain. We also saw earnings news from Supermarket Income REIT.
Get my analysis on all these updates (plus the Nibbles) in Ghost Bites at this link>>>
Hosted by Jeremy Maggs and part of the excellent Investec Focus Radio stable, the latest episode of No Ordinary Wednesday focuses on whether China is Trump-proof. You don't want to miss this one! Find it here>>>
In Magic Markets, the team from Mesh Trade joined us to explain how you can invest in gold using blockchain technology. Interesting, right? Talk about tradition meeting technology! To learn about fractional ownership of Krugerrands (and a discount available for a limited time), listen to this podcast>>>
Have a lovely day! |
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| SATRIX: Don't waste the TFSA opportunity |
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| | | Tax-free savings accounts (TFSA) are one of the most building blocks in any equity portfolio. The advantage of compounding tax-free returns over a long period is incredibly powerful and can really turbocharge a long-term wealth creation journey.
To discuss the importance of TFSA investments and the opportunities available to investors in the ETF universe, familiar voice Siyabulela Nomoyi of Satrix returned to the Ghost Stories podcast.
Enjoy it here>>> |
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| GHOST WRAP: Retailers on sale on the JSE - a review of the first few weeks of 2025 |
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| The retail sector got off to a very poor start in 2025. With practically the entire sector down, are there stocks that were punished more than they should've been?
This podcast is a useful summary of recent retail updates across the clothing and grocery sectors, as well as other relevant areas.
You can find the recording and the transcript (with charts) at this link>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Absa, Attacq, Clientele, Homechoice, Hyprop and Supermarket Income REIT all released important financial updates. Sirius Real Estate sold a property and Vukile is buying one. Get the details in Ghost Bites>>> |
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| Unlock the Stock - Afrimat |
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| In the 48th edition of Unlock the Stock, popular JSE mid-cap Afrimat returned to the platform for a management presentation and interactive Q&A with attendees of the webinar. The recording is available at this link>>> |
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| DOMINIQUE OLIVIER - Click or brick: where does the future of shopping lie? |
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| | | Online shopping was supposed to take over the world - so why are more people demanding access to physical stores? The numbers tell an interesting story about the need for omnichannel strategies. Read it here>>> |
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| INVESTEC PODCAST: Is China Trump-proof? |
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| | | Tariffs may have a diminished impact on China, as the country has strategically restructured its supply chains to lessen its reliance on the US. This is according to Campbell Parry, global resources analyst at Investec Wealth and Investment International, on the latest episode of No Ordinary Wednesday available here>>> |
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| International Business Snippet: |
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| Dick's Sporting Goods may have had a strong festive season, but the outlook for 2025 is anything but encouraging. The share price fell 5.7% as the management team put out a narrative of uncertainty around tariffs, rather than specific concerns related to consumer health. Of course, if tariffs do have a major impact, then consumer demand will deteriorate anyway. With earnings expectations well below analyst estimates for 2025, the choppiness in the market at the moment is both a risk and an opportunity.
Retailer Kohl's had a far worse day, closing 24% lower based on guidance for 2025 that suggests a drop in revenue of between 5% and 7%. With a new CEO in place, will this become a turnaround strategy? This definitely isn't the right geopolitical environment for a successful retail story, I'll tell you that much.
Given the jitters in the US at the moment, we decided to cover a European defence stock (not the spelling!) as our latest report in Magic Markets Premium. BAE Systems finds itself in an interesting position, with strong links into the US, European and allied military budgets. It's a better business than many of the continental Europe names, as reflected in the valuation. Our subscribers can enjoy our detailed work on this growth stock. |
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| Magic Markets: Buying gold on the blockchain |
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| | | Magic Markets: If there’s one thing the markets taught us recently, it’s that gold remains as relevant as ever. Mesh Trade brings you a new way to invest in this store of value, giving you a perfect example of tradition combined with tech.
For a limited time, Mesh investors can buy Krugerrands at the best retail price in the market and on a fractional basis using blockchain technology. Mesh also offers a wide range of tokenised financial assets, giving investors a multi-asset solution on a single platform.
To learn more, listen to this podcast>>> |
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| Global trade tensions and recession concerns drove a volatile session on Wall Street overnight, with major indexes closing lower despite signs of improving US-Canada relations.
President Trump's increased tariffs on Canadian aluminium and steel sparked early losses before markets partially recovered after Ontario agreed to remove an electricity surcharge and Trump suggested he might reduce the new tariffs.
The Trump administration announced that Ukraine military support will resume to help markets rebound off near term lows.
European markets remained relatively stable, while Asian markets showed mixed results.
The dollar and Treasury yields have weakened amid ongoing recession concerns and trade policy uncertainty.
The JSE All-Share Index is expected to open up marginally firmer this morning while the rand remains around the R18.30/$ mark.
The spot gold price was around $2,915.6 per ounce continuing to rise due to safe-haven demand and a weaker US dollar.
We are seeing a marginal rebound from oversold territory on oil.
On the news front, US CPI inflation data and South Africa’s second attempt at the budget speech will be in focus.
Key Indicators: USD/ZAR R18.35/$ | US 10yr 4.26% | Gold $2,911/oz | Platinum $983/oz | Brent Crude $69.59
As often as practically possible, insights from the IG Markets morning macro update by Shaun Murison will be featured here. Where this isn't possible, only indicators will be provided. If you want to learn more about trading, refer back to The Trader's Handbook, a podcast series that takes you through many of the important principles in trading. |
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