| Good morning Voornaam, As I mentioned yesterday, the GNU-inspired rally has given directors of several companies a great opportunity to sell shares into a strong market. That's helpful for their retirement plans.
At Pick n Pay though, the GNU rally may well be the difference between survival and failure.
There have been two major gifts for Pick n Pay in the last few months. The first was the disappearance of load shedding, which suddenly took diesel costs out of the system and made their on-demand weaknesses vs. Checkers relatively less important. The second was the market sentiment improvement around the GNU, which has made the rights offer less painful than it would've been.
If sentiment stays strong, then the eventual sell-down and unbundling of Boxer will also be much better than would otherwise have been the case.
Sometimes, you need a bit of luck in a turnaround story. Full details in Ghost Bites.
There's some great new stuff for you this morning, including the launch of The Trader's Handbook podcast (my collaboration with IG Markets South Africa) and a new recording of Unlock the Stock, featuring PBT Group.
You still have time to register for the next Unlock the Stock event, scheduled for Thursday at midday. It will feature the management teams of Attacq and Capital Appreciation. Attendance is free as always, but you must register here to attend at 12pm on Thursday.
Enjoy the rest of your Ghost Mail and have a great day! |
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| FEATURED: The Trader's Handbook |
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| | | IG Markets collaboration: In the first episode of this exciting new podcast series, Shaun Murison of IG Markets South Africa joined me for an introduction to the art of trading and why we are doing this series. Get ready to learn about this wonderful element of the markets at this link>>> |
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| FEATURED: Unlock the Stock - PBT Group |
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| Unlock the Stock: PBT Group returned to Unlock the Stock to present the recent numbers and take questions from the attendees of the live event. With many topics covered, this recording is well worth watching>>> |
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| Ghost Bites: Pick n Pay has given dates for the R4 billion rights offer. MAS is putting together a deal for the Prime Kapital joint venture. Zeder is selling a farm. Read Ghost Bites here>>> |
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| | | Ghost Wrap: You need just five minutes to get the latest on a few stocks that I think are worth watching in a GNU environment. KAP, Sephaku Holdings, ArcelorMittal and Nampak are all waiting for you, brought to you by Forvis Mazars. Listen to it here>>> |
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| Magic Markets: The GNU dawn might be all the rage in South Africa, but what does this mean for portfolio strategies? Which macroeconomic indicators are important here and which sector would we focus on to play this theme? Listen to the podcast or read the transcript at this link>>> Investec No Ordinary Wednesday podcast: The market may be unpredictable, but your investment strategy doesn’t have to be. Investec Investment Management experts share their insights on what approaches are winning, common mistakes investors make, and why staying the course is important. Enjoy it here>>> |
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| International Business Snippet: |
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| A story on CNBC that caught me eye this morning relates to Athletic Brewing Company, a startup that focuses on non-alcoholic brews. I must be honest, I haven't quite understood this particular craze. When I want something non-alcoholic in a restaurant or at a bar, I order a sparkling water. Luckily, the world is full of people with different tastes and approaches, so it seems there's a huge opportunity to help people grow a beer boep without any of the fun along the way.
Athletic has over 19% market share in non-alcoholic beer in the US market, making it the 10th largest US craft brewery and 20th largest overall US brewing company according to the Brewers Association.
Millennials and Gen Z consumers are actively trying to drink less alcohol according to recent data. Honestly, based on my peer group, I can see a similar trend, although I figured that was related to how wildly painful the next day is once you're on the wrong side of 30.
Fewer hangovers, more beers? Either way, consumers are buying and investors are lining up, with Athletic Brewing Company raising $50 million in equity financing in the latest round. Every year, the world changes just a little bit more.
If you want to become a better stock picker, Magic Markets Premium is perfect for you. We covered Acushnet last week and we are digging into Tesla this week. To get access to this research and the rest of the vast library, subscribe to the platform here. |
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| IG Morning Call: daily macroeconomic update |
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| Dovish comments yesterday from Fed Chair Jerome Powell appear to have affirmed a September rate cut, keeping US equity markets buoyed and the dollar index near weekly lows.
European equity markets were sharply lower yesterday on political angst following French election outcomes. We are however seeing European futures markets suggesting a marginal rebound this morning.
Asian benchmarks are mostly higher this morning and on balance we are expecting a flat to slightly firmer start for the JSE All-Share Index.
The rand remains firm at R18.12/$, although slightly off its best levels seen yesterday.
Oil prices continue to trade lower, despite a higher than expected inventory draw reported by US commercial firms over the last week.
Gold is trading modestly firmer but remains rangebound in the short term.
Key Indicators: USD/ZAR R18.12/$ | US 10yr 4.3% | Gold $2,369/oz | Platinum $985/oz | Brent Crude $83.95
The macroeconomic update is based on IG's morning call update |
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