Prosus: “Investing through the income statement”
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Afrimat’s track record is spectacular. Spear REIT is a highly respected property fund. On Unlock the Stock, you can learn about both companies.
RCL is far more than just a chicken business
RCL is far more than just a chicken business these days, which isn’t a bad thing.
Bidvest: strong trading profit growth in every division
Bidvest closed 3.8% higher after releasing results for the six months to December 2021.
Liberty Two Degrees: reversions continue to bite
Liberty Two Degrees holds stakes in some of the most iconic properties in the country
Alviva: 20% revenue growth excl. Tarsus
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PSG Group and the Great Value Unlock
This is one of the biggest news stories on the JSE that we’ve seen in a while
JSE Limited: a cash cow in a shrinking field
You may not be aware of this, but the JSE Limited is listed on the JSE. You’re right in thinking that this sounds like the financial version of the movie Inception
Capital Appreciation on the deal train
The company has announced the acquisitions of three technology companies in South Africa and a 20% stake in a company in the Netherlands.
Woolworths won’t miss 2021
as released results for the 26 weeks to 26 December 2021. The share price rallied 6% despite a fair share of negative commentary on Twitter.
Cashbuild’s negative sales momentum continues
Cashbuild released its interim results for the six months ended 26 December 2021
Comments (17)
Dawid Jacobs
28 Jun 2022Thank you Ghost for an honest, straightforward article and your remarks on gems like “we invested heavily through our income statement.” This is how I learn from you!
The Finance Ghost
28 Jun 2022Thank you – it’s a pleasure! I think it’s always important to consider bull and bear cases on all news stories in the market.
Jeff
28 Jun 2022As a young finance student I had a little bit of difficulty understanding the sens report and the decisions that were being made by Prosus. This breakdown did wonders. Thank you
The Finance Ghost
28 Jun 2022That’s great to hear – good luck with your studies! I was there too, many years ago…
Sipho
28 Jun 2022Very smartly put…why the fixation with this Npn / Prx pair ? I wonder? Fact is the growth engine that gave us NPN is going or gone now. The future engine is somewhat of an enigma!
The Finance Ghost
28 Jun 2022An enigma that is HUNGRY for cash.
Jane
28 Jun 2022I agree with your comments 100%.
Shades of Steinhoff – build the share price higher with no dividend payback to investors, , invest in unprofitable bits and bobs to enhance turnover, huge payouts to directors and connections, dodgy shareholding sleight of hand and a believing public looking to be proud in something on the JSE after SAB and other SA jewels have sold out! Recipe for short term success but long term disaster!
The big institutions should be ashamed at their complicit behaviour…the only one who will lose is the poor investors who trust their wealth managers to act in their best interest but who in fact work to enrich themselves and their bosses. I predict many tears to follow…but hope I’m wrong!
Mohammed
28 Jun 2022Great article as always, love your daily updates!
The Finance Ghost
28 Jun 2022Thanks very much!
Thabang
28 Jun 2022This is particularly sobering
The Finance Ghost
28 Jun 2022Yup – sadly the real story often is!
Pieter
28 Jun 2022What an excellent article.
The Finance Ghost
28 Jun 2022Thank you!
Ian
28 Jun 2022Prosus/Naspers classifies food delivery as a technology business. I’m not sure why. When I was a child in the 1950’s my mother used to phone the grocer and her order would be delivered. What is the difference?.
I will also quote from the results announcement “The online food and convenience industry is still in its early stages of development, and we are excited by its long-term prospects, and we believe it will ultimately yield a good return on investment.”
Anybody like to hazard a guess as to how long ultimately is?
The Finance Ghost
28 Jun 2022I personally think the economics will never become appealing, like streaming. As soon as they start to look good, new competitors will enter.
Prudence
28 Jun 2022The weird dynamic that has also been missed here is that investors are paying up for management’s “capital allocation” abilities, which capital allocation is actually value destructive on the whole…the share price gains aside. The nature of the corporate structure almost certainly ensures that the discount to NAV never closes
The Finance Ghost
28 Jun 2022They are actually being applauded by the market now for FINALLY doing something positive after years of destroying value, as you say. It’s the most extraordinary thing for me.