| Telecom giant MTN's share price has been rather fascinating this year. Despite ongoing strong results in South Africa and the various African subsidiaries, the share price is down over 19% year-to-date. The drop is more severe since it peaked at over R210 in March 2022, now trading below R140. The price is up more than 5% in the past month, though it has traded in a tight range since the beginning of June. In the latest update from MTN Nigeria (a critical investment in the broader group), EBITDA grew by 22.1% in the six months to June 2022. After all the panic about Nigerian sim cards and subscribers being cut off, the business posted great profit growth. Free cash flow has fallen by over 14% because of the extensive investment in the rollout of the 4G network. This is a good reason for free cash flow to decrease, as MTN generates solid returns from its African businesses (wh en they aren't being fined by governments). Here are some other juicy excerpts from Ghost Bites this morning: Vukile Property Fund is acquiring the Pan Africa Shopping Centre near Alexandra, Johannesburg. This is a phased transaction with Atterbury Property (and other parties) on the other side of the deal. Vukile will buy phase 1 for R415 million and phase 2 for approximately R254 million once completed.Industrials REIT released a quarterly trading update that reflects ongoing demand for multi-let industrial property in the UK. That's good news for shareholders, with solid momentum in the share price in the past month.EOH released a pre-close update that shows the extent of the remaining debt problem. When the full year results are announced, EOH will also announce its capital raising plans. I cannot see how an equity capital raise can be avoided here.Astoria Investments released its quarterly results and an nounced a deal to invest $5.5 million for a 25.1% stake in International Mining and Dredging Holdings, a marine diamond business that has synergies with the Trans Hex business in the Astoria portfolio.Ellies has a balance sheet that just isn't coping in this environment, with R119 million worth of orders unfulfilled because of unavailability of stock and a stretched balance sheet that couldn't support stockpiling.It was a really busy day of news on Friday and there's far more detail on these stories and many others in Ghost Bites. GET YOUR GHOST BITES HERE>>> Looking beyond equities, the team at TreasuryONE notes that we've gone from a rampaging dollar to a roaring rand - wonderful news for importers and consumers! A fight back by the rand has been coming , though we cannot give all the credit to the rand itself. The higher-than-expected Eurozone inflation print gave the rand some additional momentum, as the dollar softened after the release. Some consolidation into the R16.60s might be on the cards here. In commodities, the safe-haven play into gold has helped the yellow metal trade firmly away from he lower $1,700s where it spent most of its time in recent weeks. Brent Crude ended the week higher for the first time in a month, as supply dynamics outweigh recession fears at the moment. Remember to visit the TreasuryONE website for more information on how they manage market risk and assist companies with treasury services. Today is Monday, which means that Chris Gilmour is here with part 2 of his series on Africa. There are some really i nteresting views in here that are worth reading. As always, personal growth is about increasing your knowledge and challenging your beliefs with alternative opinions. Chris deals with topics like the impact of globalisation on Africa, levels of foreign direct investment and the potential dangers of the continent's relationship with China. READ PART 2 HERE>>> Other stuff you should make time for: Future Forex is a name that is familiar to Magic Markets listeners. In this sponsored article, they explain the arbitrage advantage and how low risk returns can be generated using Bitcoin pricing differences in the local market vs. abroad. LEARN ABOUT CRYPTO ARBITRAGE>>>PBT Group joined us recently on Unlock the Stock, with the management team of this interesting tech company giving a presentation on the business and engaging in a Q&A session that saw extensive participation by attendees with some excellent questions. WATCH THE RECORDING>>>In the latest episode of Magic Markets, Petri Redelinghuys from Herenya Capital Advisors joined us to talk about the importance of trading DMA vs. OTC - these are technical concepts that are important if you want to take your trading more seriously. L ISTEN TO MAGIC MARKETS>>>Catch up on long-form podcast series Ghost Stories, in which corporate executives and founders tell us the stories of their businesses and initiatives. In Episode 1, Charles Savage (of EasyEquities fame) had a wonderful chat with me about how they built the platform and what the future holds. in Episode 2, Justin Clarke (founder of Private Property and now Operational Director at OrbVest) shared his journey as a founder who survive major economic downturns and raised capital from a famous venture capital investor along the way.It's a new week and a new opportunity to do something awesome. Get out there and do it! |
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| | | An action-packed day saw mainly earnings updates from the likes of Industrials REIT, EOH, Astoria, MTN Nigeria, Ellies and others. Glencore and MC Mining gave important production updates too. |
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| In part 2 of his series on Africa, Chris Gilmour shares his views on foreign direct investment and the risks being faced by the continent in its relationship with China. |
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| | | The words "crypto" and "volatility" are synonymous. As these assets aren't supported by underlying cash flows or a widely accepted valuation methodology, they tend to trade based on sentiment. Sentiment is just a function of human emotions, perhaps the mo |
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| PBT Group is a local technology company on the move, with a share price that is 4x higher since the start of 2020! Learn about the company by watching the recording of Unlock the Stock. |
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| | | Justin Clarke founded Private Property and helped steer the business through two financial crises and an investment by famous firm Tiger Global Management. He is now Ops Director at OrbVest, giving South African investors access to US medical real estate |
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| | | Petri Redelinghuys from Herenya Capital Advisors joins us to discuss the important technical differences between trading DMA and OTC. Get ready to learn! |
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