Telkom: talk of the town

Good morning Voornaam,

Quick links:

I took a break on Friday and I hope you did too. This means that Ghost Bites this morning is a bumper edition covering the news from last Wednesday and Friday - there's a lot in here. Get what you need on Bell, Discovery, Gemfields, Grand Parade, Investec, MC Mining, Renergen, Schroder Real Estate, Sibanye, South32, South Ocean, Telkom, Transaction Capital and Workforce in Ghost Bites, brought to you by Fedgroup.

​​The Vanderbilt family once had the dubious honour of being the wealthiest family of them all. Fast forward a few generations and all the money is gone. This week, Dominique Olivier uses the Vanderbilts to talk about lessons in wealth management from a cursed family. I think you will really enjoy this excellent article>>>

Thanks to Mazars, there's an episode of Ghost Wrap that is fresh out the oven for you this morning. Get the latest on Transaction Capital, Sun International, Thungela and OUTsurance in this fast-paced podcast.

Can you take matters into your own hands with your investing journey? Of course you can! In a brand new article, Duma Mxenge of Satrix gives some excellent tips around how to do exactly that. Read it here>>>

Fedgroup is going front-foot on tax free savings account information this year and I love that approach, as a TFSA should be part of your plan every year. It shouldn't be a last-minute panic in February! Find out how Fedgroup thinks about TFSA strategies in this article>>>

​​Investec has launched the Investec Nikkei 225 Autocall, a structured product that references the Japanese market. You can get all the details in this Ghost Stories podcast with Brian McMillan. For those who prefer to read, there's also a brand new article on this product available here.

A brand new episode of the Magic Markets podcast gives you the latest on Madrigal and Myomo - two growth companies that are probably nowhere near your radar. Learn about them from our guest, Justine Brophy of AnBro.

Events:

Attention: founders, venture capitalists and investors in startups. How on earth do you value a startup? Well, it's not easy, I'll tell you that much. When the numbers are on a whiteboard rather than in a balance sheet, a leap of faith (or two) is required. At bizval, in which I am a co-founder and responsible for our product development, we've put a lot of work into valuations of startups. On Wednesday 27th March, we will be hosting a webinar to talk about our approach. Join us, ask questions and engage! You can register for free here>>>

READ: Dive into your DIY investing adventure
(by Duma Mxenge of Satrix)

LISTEN AND READ: The Investec Nikkei 225 Autocall
with Brian McMillan of Investec

READ: Lessons in wealth management from a cursed family
(by Dominique Olivier)

Local company news:

Ghost Bites is brought to you by Fedgroup.
If you thought that it was a quiet time before the long weekend, you are mistaken. SENS was buzzing, even on Friday when people were hopefully enjoying a day off like I was.
So, where to begin?
Telkom was probably the lead story over the two days, announcing the deal to sell the masts and towers business to Actis and Royal Bafokeng Holdings. This is very important for Telkom's future and puts attention on the share price once more.
Speaking of attention, a casual trading statement from Bell certainly got ears to prick up. HEPS will be between 65% and 73% higher for the year ended Decembeer 2023. That's even better than the initial trading statement suggested.
On the financial services front, we saw strong numbers come in from Investec and growth in normalised earnings at Discovery.
Transaction Capital is selling Nutun Australia and seems to have locked in an appealing deal there, with a front-loaded payment profile and ongoing income through the provision of support services to that business.
In the mining sector, Gemfields reported 2023 numbers that were nowhere near as shiny as 2022. Renergen raised further funding from Airsol, an Italian investor that had already put some money into the group. MC Mining has responded to Goldway, with the shouting match now complete and shareholders left to make a decision. Sibanye suffered yet more bad luck with a production issue and South32 has withdrawn guidance for Australia Manganese based on Tropical Cyclone Megan.
On top of all this, I covered Grand Parade Investments, Schroder Real Estate, South Ocean and Workforce, as well as the usual assortment of Little Bites (including director dealings).
Everything is available with just one click in Ghost Bites at this link>>>
To help you form your own view on the value of WeBuyCars, you can watch the recording of their recent appearance on the Unlock the Stock platform.
Check out the most recent episode of the Ghost Wrap podcast, made possible by Mazars. It takes just a few minutes to get the latest on Transaction Capital, Sun International, Thungela and OUTsurance. Get it here>>>

READ: DealMakers

LISTEN: Magic Markets podcast

Currencies, commodities and rates: TreasuryONE Market Update

The rand will look to the MPC decision and guidance this week, with expectations of rates being maintained for now. Future rate cut projections will be the focus, influenced by changes in Fed expectations and domestic inflation forecasts. Key economic indicators are also set for early release.
In the US, the market focus is on the upcoming US PCE inflation data. In China, rumours are that intervention from the People's Bank of China in the open market helped the Yuan recover.
Gold, platinum and palladium all opened on a firmer note this morning.
Key indicators: USD/ZAR R18.95; US 10-year 4.21%; Gold $2,169; Platinum ZAR R17,091; Brent Crude $85.92

READ: A record year for private debt
(by Westbrooke)

Westbrooke achieved a record year in 2023 in Westbrooke Yield Plus. Private debt is becoming an increasingly popular asset class for investors seeking higher yields.
In this article, you can learn why equities tend to underperform in a high rates environment and whether bonds make up for it. You can also learn about the portfolio of private debt exposure at Westbrooke.

LISTEN: The ETF product design process
with Siyabulela Nomoyi of Satrix

International company news:
Lululemon is a great company trading at an aggressive valuation. This means that the growth story cannot afford any kind of slowdown, otherwise the share price gets hit severely.
On Friday, Lululemon's share price took a 16% knock based on weak guidance and slower North American growth. This is despite earnings per share beating estimates. When a company is priced for growth, the market is far more interested in the guidance than anything else.
Lululemon is facing a great deal of competition and has historically managed to position itself successfully as a premium brand - and that means high margins. If that status is eroded by general macroeconomic pressures, the share price could be vulnerable.
We've covered Lululemon before on Magic Markets Premium, along with a host of other apparel businesses like Nike, Under Armour and Abercrombie & Fitch. You can get all of the research for just R99/month. It pays to know what's going on out there - literally.