| Tuesday 26 October 2021 Good morning Voornaam,
One of the joys of having a solidly good company in your portfolio is that it ticks up without you needing to pay attention. Both Transaction Capital and AdvTech reached fresh 52-week highs yesterday, which suits me as I hold both.
The biggest loser in the top 100 was Sibanye Stillwater, with the market clearly not enjoying the news that CEO Neal Froneman is pursuing more deals. Cyclical stocks can really hurt, with Sibanye down more than 21% over the past 6 months.
Here's the thing though: over 3 years, Sibanye is up nearly 430%. Get your timing right on these mining stocks and the rewards are significant. The news from Sibanye is that the company has entered into negotiations to acquire the Santa Rita nickel and Serrote copper mines in Brazil. Many investors see news of acquisitions as a sign that we are at the top of the commodity cycle.
I'm not sure that Froneman's dealmaking track record is being given enough credit here. I hold Sibanye in my portfolio.
In other mining news, Exxaro has signed a memorandum of understanding with Eskom and Seriti Resources to pursue renewable energy solutions for the cost-plus coal mines supplying coal to Eskom. The aim is to create employment and re-skill communities while working towards renewable energy goals. It's nice to the see the "S" in ESG getting some attention alongside the "E" which is usually the only thing that anyone looks at.
Renergen has released interim results for the six months ended August 2021. Revenue increased by 33.3% to R1.2 million (that isn't a typo) and the headline loss per share was 21.05 cents per share. The share price closed 1.4% higher at over R28 per share, which should make it clear to you that Renergen's valuation has nothin g to do with current earnings.
As the final note on resources businesses, DRDGOLD and Royal Bafokeng Platinum both released updates for the quarter ended September 2021. I've covered these updates in a single article this morning.
MiX Telematics, which owns Matrix vehicle tracking among other businesses, released a trading statement noting that HEPS for the six months to September 2021 will be between 22% and 39% lower than in the comparable period last year. The company attributes this to deferred tax consequences of foreign exchange movements rather than operational issues, so shareholders will need to think carefully about this announcement.
MTN has received a credit rating upgrade from S&P. The announcement came out after the market closed, so you can expect to see some share price action in MTN today. The telecoms giant has been a great share to own this year but hasn't been a happy story over a 5-year period. I explain in more detail in this article.
If you haven't listened to it yet, be sure to catch Episode 48 of Magic Markets in which the team from Future Forex joined us to give an update on crypto regulations and the technology they are using for clients in crypto arbitrage transactions. Listen to it here.
Speaking of cryptocurrency, Jaltech offers investors diver sified cryptocurrency exposure via a single note. To learn more, read this article.
Finally, make sure you stay on top of currency trends and news with the team from Currency Assist. Find the latest rates and a brief note on market moving news here.
Have a happy Tuesday!
The Finance Ghost
|
|---|
|
|---|
Local and Offshore Market News |
|---|
|
|---|
| Disclaimer
Our content is intended to be used and must be used for informational purposes only. You must do your own analysis before executing any investments or strategic decisions, based on your own circumstances. We do not provide personalised recommendations or views as to whether an investment approach or corporate strategy is suited to the needs of a specific individual or entity. You should take independent financial advice from a suitably qualified individual who gives due regard to your personal circumstances.
Whilst every care is taken, we accept no responsibility or liability for any errors or omissions in any of our content.
The views, thoughts and opinions expressed in our content belong solely to the author or quoted individuals and/or entities, and not necessarily to the author's employer, organisation, committee or other group or individual, or any of our affiliates or brand partners. |
|---|
|
|---|
|
|
