Tough times at Sasol

Good morning Voornaam,

Quick links:

Sasol wants to make sure that you see and understand the numbers, showing their commitment to investors. You can get the full story from the company in this article. ​

Sasol is also featured in Ghost Bites of course, with my take on the numbers. Beyond that, you'll find very impressive numbers from CA Sales Holdings and a demonstration from Clientele on how to do a corporate deal at reasonable cost. You'll also get the latest from AECI, Altron, Jubilee Metals and Libstar in Ghost Bites, brought to you by Fedgroup.

Dominique Olivier brings you the incredibly interesting story of Vantablack (literally the blackest black) and asks the question: can you own a colour?

Made possible by Mazars, the brand new episode of the Ghost Wrap podcast brings you the latest on NEPI Rockcastle, Vukile, Italtile, Bidcorp, Spar and Pick n Pay - available here.

​Futureneers has limited space left for the 12BA Renewable Energy Partnership that achieves a 125% tax deduction if you get your money in before the end of February. To explain this further, Deon Lewis and James Rothmann joined me on a podcast. Listen to it here.

Ever wondered how the ETF product design process works? Siyabulela Nomoyi of Satrix joined me on a Ghost Stories podcast to talk about the approach to designing ETFs and the latest products from Satrix: the Satrix MSCI ACWI Feeder ETF and the Satrix JSE Global Equity ETF.

A new episode of the Magic Markets podcast gives you the latest on Airbnb and Shopify, made possible by B2IT.

Fedgroup explains why stability doesn't always have to come at a cost.

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

READ: Vantablack - can you own a colour?
(by Dominique Olivier)

Local company news:

Ghost Bites is brought to you by Fedgroup.
Sasol has had a tough time lately, with revenue down 9% in the six months to December 2023 and EBIT down by 34%. The interim dividend has fallen by 71%. To help shareholders understand the results, Sasol has placed them in Ghost Mail at this link.
You'll find my take on them in Ghost Bites as well of course, along with a lot of other interesting stuff. For example, you'll learn about CA Sales Holdings as one of the very best examples of how a local company can still achieve meaningful growth in this market. You can also get the latest on Jubilee Metals, which is bucking the current trend in mining of earnings going the wrong way.
Speaking of the wrong way, Libstar's valiant efforts on costs weren't enough to offset the impact of higher financing costs, so normalised HEPS has decreased. AECI is also a victim of higher financing costs.
At Altron, HEPS is up in continuing operations. As for total operations - well, that's a different story.
And finally, Clientele does a fabulous job of showing the market that M&A doesn't always have to cost the earth in advisory fees. The 1Life acquisition circular shows what is possible.
Get all the details in Ghost Bites here>>>
There's a brand new episode of the Ghost Wrap podcast for you to enjoy, made possible by Mazars. In the time it takes to drink your coffee, you can get the latest on NEPI Rockcastle, Vukile, Italtile, Bidcorp, Spar and Pick n Pay. Get it here>>>

LISTEN: Magic Markets podcast

LISTEN: Turning Tax into Solar Power (with Futureneers)

Currencies, commodities and rates: TreasuryONE Market Update

The dollar is a touch softer this morning, with trading ranges remaining narrow ahead of Thursday's US PCE Deflator number. New home sales numbers were below market expectations yesterday and durable goods data is due later today, so the market has a few things to digest.
Inflation out of Japan this morning was above market estimates, giving hope that the Bank of Japan could possibly raise interest rates sooner. This gave support to the yen.
And in a combination of news that isn't exactly great for South Africa, platinum and palladium both lost around 2.3% yesterday and the oil price bounced 1.4% higher as supply concerns underpinned the price, driven by fresh attacks on ships in the Red Sea.
If only Rustenburg had oil instead, hey.
If you would like to watch the recording of the panel discussion around the Budget Speech, then you'll find it on the TreasuryONE YouTube channel here.
Key indicators: USD/ZAR R19.29; US 10-year 4.28%; Gold $2,033; Platinum ZAR R17,016; Brent Crude $82.47

READ: Stability doesn't always have to come at a cost
with Fedgroup

International company news:
The competition regulator in the US is having none of it with the Kroger - Albertsons merger. They've argued that the deal would raise grocery prices and hurt workers.
The FTC is suing to block the merger, while the companies involved are arguing that the growing dominance of Walmart, Amazon and Costco is doing exactly what the FTC is trying to prevent from happening.
The companies announced this deal back in October 2022, so this has been a long and painful process.
If you're reading this block every day, it's because you want to cast your eyes farther afield for opportunities. Magic Markets Premium is your key to understanding global stock opportunities, with new stock research every week and a subscription price designed for South Africans.
For just R99/month, you get access to the entire library of around 120 research reports and podcasts. This includes Kroger, Walmart, Amazon and Costco, so you would have a lot more insight into this FTC update. Expand your investment horizons by subscribing here.

READ: Satrix launches Satrix JSE Global Equity ETF