| Good morning Voornaam,
Sadly, you'll rarely see corporates really speak their minds. Occasionally, an executive of a mid-cap decides to be blunt about the state of play in South Africa. Among large-caps that have multiple important relationships with government, it's almost unheard of.
They can't always tell us how they really feel, but corporates can always vote with their money. Anglo American and its group companies are doing exactly that, like Kumba Iron Ore which is having to pull back on production because they simply aren't getting enough support from Transnet to get the stuff to the ports. You'll get all those details in Ghost Bites this morning.
December is a busy time, but you only need a few minutes to get a solid update on British American Tobacco, Absa + Nedbank, Transaction Capital, Spur and Murray & Roberts. The Ghost Wrap podcast should be on your weekly playlist, brought to you by Mazars. Find the latest episode here.
Speaking of podcasts, there's also a new Magic Markets episode that covers local pharmacy chain Dis-Chem and US beauty giant Ulta Beauty. If you are interested in investing in retail, this is an incredibly useful show to help you learn how to analyse retailers. It is made possible by data automation experts B2IT. Find the latest episode here.
This is a bumper edition of Ghost Mail, with a great new piece from Nico Katzke of Satrix as well. He writes about diversification and makes some excellent points about avoiding major losers vs. chasing big winners. I highly recommend reading this article>>>
I'm travelling for a few days this week, so Ghost Mail might be out at erratic times. I'll still endeavour to send out a daily mail to make sure you are up to date with company news.
Have a great Monday! |
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| BRAND NEW: Ghost Wrap podcast
(British American Tobacco | Absa + Nedbank |
Transaction Capital | Spur | Murray & Roberts) |
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| | | The latest Ghost Wrap podcast goes into more detail than usual, as these stories are too important to miss. Ghost Wrap is brought to you by Mazars. |
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| BRAND NEW: Magic Markets podcast |
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| In Episode 154 of Magic Markets, we dived into the retail sector by looking at Dis-Chem and Ulta Beauty.
We love comparing and contrasting South African companies and global businesses that operate in similar industries.
This show is brought to you by international data and automation specialists B2IT. |
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| BRAND NEW: Simple, but Effective Investing |
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| Nico Katzke of Satrix is passionate about helping people achieve investment success.
Diversification is a critical ingredient in that recipe. He writes about it in this article. I highly recommend reading it. |
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| LATEST: Son of a cymbal maker (by Dominique Olivier) |
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| In her latest column, Dominique Olivier tells the story of Zildjian, a music industry stalwart that has been passed down through multiple generations.
As family businesses go, this one is worth learning about. |
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| LATEST: How to really manage your money,
featuring Nico Katzke of Satrix |
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| | | If you can't save, then you can't invest. Managing your money properly is the first step in any investment journey. I loved discussing real-world ideas and strategies with Nico Katzke of Satrix in this podcast. It's well worth a listen. |
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| LATEST: Unlock the Stock with TWK Investments |
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| TWK Investments returned to the Unlock the Stock platform to share insights into the recent numbers and the strategic outlook.
You can watch the recording here, thanks to our partner A2X. |
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| LATEST: Unlock the Stock with Karooooo |
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| | | Karooooo joined the Unlock the Stock platform for the first time to share insights into the recent numbers and the strategic outlook both locally and abroad.
You can watch the recording here, thanks to our partner A2X. |
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| DAILY: TreasuryONE Market Update The much-awaited US non-farm payrolls number printed at 199k vs. 185k expected. There was a significant drop in the unemployment rate to 3.7%, surprising the market. This robust employment data suggests a solid economic backdrop, which is why bond markets quickly showed increased skepticism towards aggressive rate-cutting in the coming year.
Investors had anticipated (and perhaps hoped for) a different outcome, with many poised for yields to continue to fall in anticipation of a weaker payrolls print. A higher-for-longer outlook on rates is strong for the dollar relative to other currencies.
It's also not great for gold, which retreated 1% to trade just above the key $2,000 an ounce level. Brent Crude traded at just over $75 and the rand ended the week at R18.87.
Remember to watch the recording of the webinar that I hosted with TreasuryONE here. |
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| | | Get the latest on Absa, Anglo American, Anglo American Platinum, Kumba Iron Ore and Murray & Roberts. This is all available with a single click in Ghost Bites. |
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| When bad stock moves happen to good people Having single-stock exposure is no joke. You can own massive companies and watch them give you a slap across the face with a wet fish.
Anglo American? Down 13.3% on Friday. That's a massive one-day drop, not least of all for a company with such a big market cap. In the same week, you could've held stalwarts British American Tobacco and Anglo American and found yourself crying into a tub of ice cream by Friday night.
It wouldn't have helped if you owned Absa as well, with that down by 6.3% on Friday.
Stock picking is an extreme sport. It all comes down to the market expectations vs. what is actually playing out at these companies. There was renewed interest in Absa at the beginning of the year, yet a wobbly in the growth story has given the share price an 18.6% beating this year. Your money was definitely better off in one of their savings accounts!
As final evidence that investing is all about matching expectations to actual outcomes, Murray & Roberts closed a whopping 13.5% higher on Friday after telling the market that it shouldn't need to do a rights issue to save the balance sheet.
Is it a better company than Anglo American or Absa? Absolutely not. Is it doing better than people thought at the moment? Yes.
Along with these companies, you can also get the latest on Anglo American Platinum and Kumba Iron Ore as well. The former is a great way to learn about how a dip in commodity prices drives a decrease in supply. The latter is a great way to learn about how Transnet is driving our country into a dark abyss.
With that, I leave you to enjoy your Ghost Bites this morning at this link>>> |
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| You should expect us in your inbox Monday – Friday. If you don’t receive an email, please check your spam, or junk folder and “move us” into your primary inbox to ensure you get it each morning.
Disclaimer
Our content is intended to be used and must be used for informational purposes only. You must do your own analysis before executing any investments or strategic decisions, based on your own circumstances. We do not provide personalised recommendations or views as to whether an investment approach or corporate strategy is suited to the needs of a specific individual or entity. You should take independent financial advice from a suitably qualified individual who gives due regard to your personal circumstances.
Whilst every care is taken, we accept no responsibility or liability for any errors or omissions in any of our content.
The views, thoughts and opinions expressed in our content belong solely to the author or quoted individuals and/or entities, and not necessarily to the author's employer, organisation, committee or other group or individual, or any of our affiliates or brand partners. |
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