| PSG's shares jumped 13% yesterday, helping to narrow the discount the investment holding company trades at relative to the value of its underlying investments. It's something the group plans to address and the release of its annual results coincided with a cautionary announcement saying it's considering a transaction that could affect its share price. While most of the businesses its invested in delivered good earnings growth last year, their share prices have been under pressure - as has PSG's. Difficult to tell whether yesterday's rally was due to its 2020 results or the pending corporate action. Sasol's shares also gained after it outlined more cash-saving measures as it deals with the fallout from Covid-19 on its operations, including cutting its salary bill for the rest of the year. In its previous note on Sasol ("What a gas") Ingham Analytics factored in breakeven this year for the Lake Charles Chemicals Project and doubted Sasol's guidance that a profit would be made. Now, after only a few weeks, Sasol is guiding to a loss of the same magnitude as the projected profits - a 200% negative differential. Ingham Analytics says the latest excuse rubs rather raw. This comes at a time when Sasol needs to keep bankers on side. What are the prospects for earnings now? Can Sasol make savings, what about the feasibility of a gigantic rights issue? Do you buy the stock or not? Click here to read "A raw state". Also today, interim results from Clicks and Anglo American outlines how Covid-19 is impacting production at subsidiaries Amplats and Kumba Iron Ore. All the latest M&A news from DealMakers too. Finally, who's telling fibs? Read the latest note by Andrew Kinsey of Ingham Analytics to find out. This unpacks the links between the equity and credit markets. "Who's telling fibs, equity or credit?" addresses the arcane arts of Credit Default Swaps and Expected Default Frequency models. Who's on the chopping block for default? Find out more here. I hope you have a good long weekend. I'll be back with more on Tuesday. Stephen Gunnion Managing Editor, InceConnect
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