Solid as a Rockcastle

Good morning Voornaam,

Fresh out the oven:

Ghost Bites: NEPI Rockcastle is in the right place at the right time in Eastern Europe and the numbers reflect that. The same can't be said for Coronation or Santova at the moment. Look out for numbers from enX, Stefanutti Stocks and Universal Partners as well, plus an update from Brimstone in Ghost Bites>>>

This is a massive election year, with over 60 nations going to the polls. On the latest Investec No Ordinary Wednesday podcast, Investec Wealth & Investment Chief Investment Strategist Chris Holdsworth shared his insights on the election outcomes that matter most to markets. Listen to the show here>>>

Calgro M3 is next up on Unlock the Stock. Scheduled for 23rd May, you can register for free here>>>

Curious about how platform businesses make a profit? How do startups suddenly start printing cash? In the next bizval webinar on Thursday 23rd May, you can find out. Register for free here>>>

In case you missed it:

​Ghost Wrap: You need barely four minutes to get up to speed on KAL Group, AB InBev, Redefine, RFG Holdings and Calgro M3, brought to you by Mazars. Listen to it here>>>

Southern African bonds: In a new article, Siyabulela Nomoyi of Satrix comments on the Fed approach and what this means for Southern African bond opportunities. Read it here>>>

​Chasing (returns from) the Sun: Grovest's Tivon Loubser joined me on a Ghost Stories podcast to talk about the 12BA allowances and how the government is giving returns from solar a serious boost for investors and you can listen to it here (full transcript included)>>>

Electrifying stocks: Craig Antonie of AnBro joined us on Magic Markets to talk about the electrification theme and related global stocks. Thematic investing is powerful. Enjoy it here (full transcript included)>>>

​​Costa plenty - the hefty price of human error: This brand new piece by Dominique Olivier makes a strong case for self-driving vehicles, with practically every human flaw on full display in the Costa Concordia disaster. Read it here>>

LISTEN: Chasing Returns from the Sun

Local company news:

NEPI Rockcastle is a perfect example of what the "good times" look like for a property fund, with a strong balance sheet and excellent underlying growth at the properties.
In contrast, Coronation is battling some tough trends in South Africa and we can see it in the earnings. Over at Santova, the heady days of the pandemic seem to be over and the winds of change are blowing in freight.
I also covered the earnings growth at enX, including an overview of what you'll find in that group after the Eqstra disposal.
There are financial updates from Stefanutti Stocks and Universal Partners. You'll also find a brief note regarding Brimstone's accounting policy for Sea Harvest.
Get the details in Ghost Bites at this link>>>

LISTEN: Investing in Private Credit
(Reginald Labuschagne, Sanlam Private Wealth |
Harris Gorre, Grovepoint Investment Management)

READ AND LISTEN: The Global Accelerator

READ: Costa plenty - the hefty price of human error
(by Dominique Olivier)

International business news:

Walmart is big. In fact, it's gigantic. At that size, it's very hard to execute strategies that make much of a difference. They've tried things like Walmart health clinics (doctors and dentists next to the stores), but they are giving up on that. We all know how well Massmart went for them in South Africa. They do some other pretty unusual stuff, like the acquisition of smart TV maker Vizio.
The real problem is that the "defensive" side of the business is categories like grocery, whereas the real margins are made on discretionary goods like general merchandise (e.g. TVs - hence the deal). In that regard, Walmart comes squarely up against the likes of Amazon and many other competitors. This is why we see headlines like the laying off and relocation of hundreds of corporate employees, as even the likes of Walmart have to look for financial improvement under every rock.
The company will report earnings later today.
This week, we are covering a consumer favourite in Magic Markets Premium: Coca-Cola. If you're curious why this has been a staple of the Berkshire Hathaway portfolio, then subscribe to the platform here.

Macroeconomic Update

Softer US inflation and retail sales data lifted hopes for a rate cut, with bets on a September rate cut up to 54%. The rand has moved below the R18.30 mark, in line with stronger emerging markets. Further data releases today include US weekly jobless claims along with the Philadelphia Fed manufacturing index print.
Gold surged on the potential for rate cuts, with PGMs also consolidating above the $1,000 mark. Base metals are firmer this morning and although Brent Crude is also up, demand concerns are still weighing on it.
Key indicators: USD/ZAR R18.27; US 10-year 4.32%; Gold $2,391; Platinum ZAR R19,514; Brent Crude $83.14
This macroeconomic update is based on TreasuryONE's morning update.