| Monday 14 February 2022 Good morning Voornaam,
Happy Valentine's Day! May your stocks be green and your roses be red on this fine Monday.
Bidvest jumped 9.5% after releasing a trading statement for the six months to December 2021. HEPS is expected to be 35% to 40% higher than the prior year's interim period, which means a range of between 802 and 832 cents. From continuing operations (excluding Bidvest Car Rental which has been sold), HEPS is between 32% and 37% higher. There were some once-offs in the number, so Bidvest's view of normalised earnings from continuing operations reflects an increase of 28% to 33%. Whichever way you cut it, this has been a strong period of recovery. The share price is now trading at January 2020 levels, before the world went mad.
Thungela Resources is a perfect example of why you can be "late" in some shares and still make a fortune. It rallied 11.8% after announcing that HEPS for the year ended December 2021 is expe cted to be between R65.81 and R66.76 per share. The comparable period isn't terribly useful, as the group was still part of Anglo American. Instead, investors are focused on Thungela being nearly a six-bagger since listing in June 2021! At a share price of R120, it remains on a ridiculously low trailing P/E. As I often caution, one must take a forward-looking view on these cyclical companies. The trailing P/E is much less important as the underlying commodity exposures can be highly volatile.
Anglo American Platinum posted a 5.3% jump after releasing a trading statement covering the 12 months to December 2021. HEPS increased by between 146% and 166%, as another perfect example of how mining can vary from one year to the next (especially when the base year included Covid). This result was driven by a 22% increase in the rand basket price and an 82% increase in PGM sales volumes. HEPS was between R283.97 and R306.78 per share. The closing share price wa s R1,948.56.
ARB Holdings is the subject of a buyout offer by Masimong Group Holdings, an entity acting alongside Sabvest which is listed on the JSE. The offer price is R8 per share. The company has released its interim results for the six months to December 2021. ARB's revenue increased 7.5% but HEPS fell 5%. The company highlights the riots as being a major issue for the business, with 200 customer stores affected and some unlikely to ever be reopened. The lighting issue took all the pain, with revenue down 15.3%. The electrical division grew revenue by 16%.
Textainer Group has reported its fourth quarter and full year 2021 results. The company is one of the world's largest lessors of shipping containers. Full year lease rental income increased 25% and showed strong momentum into the end of the year. Diluted HEPS of USD5.31 is 3.5x higher than the prior year! The share price has doubled in the past 12 months.
Sable Exploration and Mining looks set to bounce back from its suspension that has been in place since December 2016. The company needs to get its suspension lifted by bringing all financial reporting up to date. Within two months of this being achieved, it intends to implement a R50 million rights offer, of which R20 million has been underwritten by CEO James Allan and another R20 million by Magni Investment Holdings. After debt repayments, the balance will be used for working capital in various prospecting rights. The company is also eyeing up a number of acquisitions.
Today's feature articles are on British American Tobacco's 2021 results and the recommendation by the Royal Bafokeng Platinum independent board on the mandatory offer that has been made by Impala Platinum.
Monday means a new Magic Markets episode in InceConnect. It's a big one and you need to make time to listen to it. We welcomed Afrimat CEO Andries van Heerden to the show to talk about the company's incredible track record and how it has been achieved. There's so much to learn here for everyone, whether you are a student or a corporate exec yourself. Listen to it here.
Finally, Chris Gilmour updates us on the macroeconomic and political news that is moving the markets.
Have a lovely day with someone special today. And if you're single and in need of a plan for tonight, The Tinder Swindler on Netflix is phenomenal viewing and a nice reminder of the absolute battlefield that is dating!
The Finance Ghost
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