| Good morning Voornaam, Hello from Radlett in North London once more, where I'm enjoying my last day here. The next stop is Dubai for a couple of days. I had really insightful meetings in London yesterday that were relevant across my various business interests. There's huge energy in that city, helped along by the summer weather that has finally set in. If you've never been to London, I cannot recommend it enough for a summertime visit.
Meanwhile, it feels like ten years' worth of politics happened while I'm away! The JSE is on fire in a good way for once, with renewed optimism around SA Inc. Let's hope it sticks!
Fresh out the oven: Ghost Bites: Thungela is the victim of sharp declines in coal prices. Telkom is looking much better these days. MultiChoice and Sanlam did a smart insurance deal. Stor-Age had flat dividend growth. Look out for Sephaku and Southern Palladium as well. Get the details in Ghost Bites>>>
Magic Markets: The release of US jobs data is more important than you might think. In this episode, we explain the different types of releases and why they matter. Find it here>>>
Unlock the Stock: Calgro M3 has been quite the story recently. To unpack the performance and prospects, the management team recently joined us on Unlock the Stock. You can watch it here. Next up on Unlock the Stock will be a double-header of Spear REIT and Adcorp on 27 June. You can register for free here.
Dominique Olivier: With my passion for racing clearly contagious, Dominique Olivier decided to dig into the history of Le Mans and how the technology on the racetrack ends up in the cars we drive every day. Read it here>>> |
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| In case you missed it: Ghost Stories with Kingsley Williams of Satrix: There is only one free lunch in investing. Aside from the benefits of diversification, we discussed many other elements of investing. You can enjoy it here>>>
Ghost Stories with Michael Field of Fedgroup: There are different ways to think about portfolio construction and how important elements like yield and inflation protection can be brought in. Learn more here>>>
Ghost Wrap: You need just five minutes to get up to speed on Capital Appreciation, MultiChoice, Spar and The Foschini Group, thanks to Mazars. Find it here>>>
The Current brought to you by Investec: This year, SA is set to become the tenth-largest solar market in the world. In episode 4, Iman Rappetti spoke with Investec's Melanie Humphries, Bernard Geldenhuys and De Wet Taljaard from SAPVIA to explore SA’s apparent solar boom. Enjoy it here>>> |
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| Learn all about Calgro M3 |
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| Calgro M3 is an excellent example of one of the smaller companies on the JSE that has delivered very strong recent share price returns.
To understand why, watch the recording of Unlock the Stock with the Calgro management team, available here. |
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Local company news:
Thungela is exposed to the coal price and the effect of that is clear to see in the latest numbers. Single-commodity groups have only one certainty in this world: volatility.
Stor-Age is the absolute opposite of that, with a business model that is as dependable as the Springboks in a high-pressure game. That doesn't mean that the banks don't get their share, though.
MultiChoice and Sanlam have done a rather cute deal, giving Sanlam the opportunity to drive the insurance business forward into the extensive MultiChoice client base. I like it.
At Telkom, there's much improvement in the business. The trajectory looks better than I've seen before.
Sephaku has guided a major jump in HEPS as part of a recovery in the underlying operations. And finally, Southern Palladium has finished its initial drilling programme, with encouraging results.
Along with a few Little Bites, you can get all the details on these important stories in Ghost Bites at this link>>>
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| Le Mans: The Race to Innovate |
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| Much of the technology in your road car was first proven on the toughest of stages: endurance racing. Specifically, Le Mans.
In the spirit of my first experience watching the race, Dominique Olivier did what she loves most and dug into the trivia. Read it here>>> |
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| The only free lunch in investing |
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| With volatility as the theme in markets in a year of elections, it’s important to keep your head as an equity investor. Take a long-term view and let the market do its job. Easier said than done, of course.
Kingsley Williams joined me to share practical tips and important insights into investing. The podcast and full transcript are available here. |
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International business news:
The heat on Boeing is only getting more intense, with CEO Dave Calhoun facing a Senate subcommittee. With everything from whistleblower claims to supply chain issues on the table, one of the members of the panel described it as a "travesty" that Calhoun is still in the job. It's worth bearing in mind that Calhoun is the replacement for the last CEO who was ousted after safety concerns! It really is just a mess.
In the land of electric vehicles, Fisker has filed for bankruptcy protection. Demand for EVs simply hasn't met expectations, leading to casualties in the sector and some major changes in strategy at large automakers. In an environment with proper charging infrastructure, EVs make a reasonable amount of sense. Outside of that, they really don't.
We covered Lululemon in Magic Markets Premium last week and we are covering Stellantis this week. To get access to this research and the rest of the vast library, subscribe to the platform here. |
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| Macroeconomic Update The sharp rally in South African assets pushed the rand towards the R18.00 mark, with the formation of a business-friendly GNU doing great things for the local market. The JSE All-Share Index was the best performing index on Bloomberg yesterday! The local government bond auction was five times oversubscribed.
The markets will be looking forward to the new Cabinet to be announced later this week.
Offshore, US retail sales data came in softer than expected yesterday, lifting rate cut hopes. The dollar traded flat off the back of that release.
Gold and PGMs are all relatively flat this morning, while Brent Crude is holding above the $85.00 level.
Key indicators: USD/ZAR R18.03; US 10-year 4.22%; Gold $2,327; Platinum ZAR R17,507; Brent Crude $85.36
This macroeconomic update is based on TreasuryONE's morning update. |
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