Are you a business owner or CFO managing a group with complex cash flow forecasting needs? There's a way to make it easier, with a solution that plugs into your ERP systems and drives more accurate and efficient cash flow management and forecasting. To find out more, join Pieter Cronje of TreasuryONE for a webinar on Wednesday morning at 9am. You can register here>>>

Diesel, or mental health?

Luckily, Netcare's balance sheet is strong enough that the company can afford diesel and its capex re quirements over the next year. Most businesses aren't so lucky, with a sharp rise in operating costs almost certainly putting a damper on cash available for expansion and growth. Our country simply doesn't work with continuous stage 4 load shedding, let alone the catastrophe that is stage 6.

I use Netcare as an example because the numbers are so memorable. At the moment, the group is spending around R10 million per month on diesel, an implied annual cost of R120 million. The capital expenditure plan for the mental health business unit is R111 million in FY23. This gives us a very "real" way to understand the cost of load shedding. If Netcare was strapped for cash, the mental health expansion wouldn't be happening.

Across the country, capital expenditure is either being cancelled or redirected towards energy solutions that wouldn't be necessary if our infrastructure actually worked. Last year, we were carried to a large extent by our mining houses who enjoyed sharp increases in the prices of coal, among other commodities. Despite Transnet's shortcomings, they could still generate huge profits. With coal prices having fallen off and PGM prices also under pressure, where does that leave South Africa and our miners in FY23?

Don't worry, I didn't suddenly become a pessimist over the weekend. I'm just giving you a realistic assessment of how our infrastructure is starving our economy of growth. It's something to take into account when deciding what your portfolio allocations should be.

For more on Netcare, as well as the latest on Brait's listing of Premier, Acsion's potential delisting (now off the table) and Southern Palladium's drilling results, be sure to re ad Ghost Bites>>>

Give me nine minutes of your time

If you do, I'll update you on nine companies on the JSE. In the latest episode of Ghost Wrap, I focused on recent banking results (Capitec / Standard Bank / Nedbank), the pain in fishing (AVI / Sea Harvest Group), the exceptional performance of Bidvest, the dangers of high multiples (Shoprite / STADIO) and reality setting in for Renergen shareholders about capital requirements. Brought to you by Mazars, this is a great use of your time>>>

Buying with bias: be careful

The Satrix team has weighed in this morning with an article that raises so many important points. Making an effort to understand cognitive bias is one of the smartest things you'll ever do. The benefits go far beyond just your portfolio!

In an article that gives relatable examples of several different types of bias, Kingsley Williams (CIO) and Nico Katzke (Head of Portfolio Solutions) are giving you a great opportunity to learn something new this morning. Read it here>>>

A softer dollar

US non-farm payrolls were better than expected at 311,000 for February vs. 225,000 expected. Importantly though, unemployment was worse at 3.6% vs. 3.4% previously. The market seemed to focus on the higher unemployment, with the dollar trading softer across the board. The market moved to a 50/50 position on whether the Fed will hike rates by 50 basis points at the 22 March FOMC meeting.

But as TreasuryONE highlights for us, the rand still had a tough week. It briefly broke above R18.70 on Friday, a multi-year high. The unemployment data delivered some relief in afternoon trade, with the rand likely to trade between R18.10 and R18.60 as the market digests the data.

Clean and green in the US

In the latest Magic Markets episode, Craig Antonie of AnBro Capital Investments joined us to discuss the Inflation Reduction Act and how this could be a useful boost for energy stocks in the US. Using the examples of NextEra Energy Partners and First Solar, with a passing mention of Constellation Energy, this is another reminder of the opportunities beyond our borders. Listen to it here>>>

To get to grips with those global opportunities and to learn how to critically analyse a business from an investment and strategic perspective, Magic Markets Premium is the most effective and affordable tool available to y ou. With recent shows covering the likes of Comcast, MercadoLibre, Generac, Yum! Brands and Pfizer, we focus on deep insights into a broad range of sectors. Get access to the entire library here>>>

Good luck with the start of your week!