What the FAQ?

Good Morning Voornaam,

In exciting news in the alternative assets space, Jaltech has launched South Africa's first alternative investments platform, offering a range of alternative investment opportunities. This includes Section 12B solar investment opportunities, structured products, cryptocurrencies and more. Click here to learn more>>>

Episode 123 of Magic Markets is an informative discussion on growth vs. value investing and the differences between these styles, using several real-world (and global) examples. Expand your investment knowledge by listening to the show>>>

That's a wrap!

It's extremely difficult to stay on top of all the company news on the JSE. Don't worry - I've got you covered in the Ghost Wrap podcast, brought to you by Mazars. The latest episode features news and my views on AB InBev, Famous Brands, Calgro M3, CMH, Astral Foods, Pick n Pay and Santova. Find it here>>>

And if you're looking for a podcast with a different flavour, the latest Ghost Stories episode with Nico Katzke of Satrix is an objective discussion on perhaps the most timeless debate of all for South Africans: inve sting offshore vs. locally. Get an unbiased view on this emotive topic here>>>

Steinhoff stays firm - but not in a good way

You won't often see a listed company release a frequently asked questions (FAQ) document. The WHOA Restructuring at Steinhoff (yes, that's the real name - the jokes write themselves) is a complicated thing and management has continuously said that there will likely be no equity value left for investors.

I continue to highlight this issue, as Steinhoff is still trading at 23 cents per share. It can go to zero (and probably should, based on management's ongoing views). Notably, the company has also agreed a deal with Tempur Sealy to sell Mattress Firm.

In other news, Sibanye investors are licking their wounds this morning after the company released ugly PGM numbers that severely hit profitability. Equites Property Fund suffered substantial property value decreases in the UK, Quantum Foods is now dealing with bird flu on top of load shedding and Vukile Property Fund's deal for a local property fell through, so that company is investing further in Spain instead. To top off an interesting day of news, Karooooo released results (a big improvement on last year) and Industrials REIT released the circular for the Blackstone deal.

There's literally something for everyone in Ghost Bites this morning>>>

Bottom of the class for the rand

As I write this in the darkness this morning (I gave up last night because I was too tired to write in the dark at nearly midnight), it's not hard to figure out why the rand is doing so badly. I went to bed with no electricity and woke up with no electricity, something that is now a reality for South Africans from all walks of life.

TreasuryONE looked at performance since the start of the year for a large basket of currencies. The rand has only beaten countries like Pakistan, Lebanon, Argentina and Egypt. You might want to travel to those places and you don't want to play socc er against a few of them, but you don't want to be spoken of in the same breath when it comes to macroeconomics. Our situation is incredibly Messi.

The selling of bonds by foreigners picked up in the last week and the 2048 bond is back at 3-year highs, yielding above 12%. Only Turkey and Brazil offer better returns among emerging markets.

The rand has broken out of the R18.00 to R18.50 range, trading at R18.58. Government desperately needs to solve the electricity crisis while we still have a currency worth saving. It also does us no favours the the dollar is performing well again, with anticipation for inflation data out of the US later today to be surprisingly high.

Managing forex exposure is extremely challenging. Speak to the team at TreasuryONE about the services they offer.

I end off with a reminder: if you want to learn more about global stocks so that you can diversify your wealth in these very difficult times for South Africa, then Magic Markets Premium is perfect for you. With a weekly report and podcast focused on a different global stock each week, you'll learn how to really do your own research and assess a company to an appropriate level of detail. If you want to see what this is all about, here's a sample report and podcast from a few months ago.

Good luck out there - it feels like we need it at the moment.

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