Jsedirect With Simon Brown

Offshore / US unemployment 8.4% (Temporary Census work (+238,000 jobs) accounted for around one-sixth of the August gain of 1.4 million jobs) / Thursday sell-off with Friday red, but less bad. Monday closed for labour day. / India bans another 188 Chinese apps / Carnival Corporation's Costa Cruises to Restart Cruise Operations This Weekend out of Italy. / Tesla does not go into the S&P500. Instead Etsy, Teradyne and Catalent added. IN order to get into the S&P500 “Companies must be U.S. based, and listed on either the NYSE, the Nasdaq or the Cboe. They also must have a market cap of more than $8.2 billion, and report four straight quarters of profit as determined by U.S. generally accepted accounting principles (GAAP).” Local / Prosus has now gone into the Euro Stoxx 50 and EUR2bn passive inflows should support the share price. / Local GDP on Tuesday / Results; Truworths, Northam & Implats, Libstar and ADvTech / Spur execs leaving (four going by year-end including CEO & COO). / Icasa delays sp

Simon Shares Day 160 of lockdown. Northam (JSE code: NHM) results had two comments that caught my attention. They are aggressively buying back their Zambezi pref shares (JSE code: ZPLP). The second was that the amount of rhodium used in a single catalytic converter was 0.3g in 2015 and will be 0.45g in 2025. A 50% increase that supports the price increase. Hammerson (JSE code: HMN) have consolidated their shares 5:1 ahead of a massive rights issue which either you follow or exit because if you don't follow you'll be diluted out of existence. Upcoming events; 03 September ~ JSE Power Hour: Under the hood of a passive robo advisor Subscribe to our feed here Subscribe or review us in iTunes Level 2 winners? We're now able to travel between provinces, visit friends and family, go out for dinner and even back to the office. Leisure is back, but is it investable yet? So who are the first winners as we ease out of hard lockdown? On the one hand, pent up demand is real. I was at a bush lodge over the weeken

Offshore / Tesla and Apple stock split today / Changes to the dow Jones; Salesforce.com will replace Exxon Mobil, Amgen will replace Pfizer and Honeywell International will replace Raytheon Technologies / Reports that Walmart and Microsoft liked up to buy TicTok / ADP Employment Report on Wednesday / New Zealand exchange closes three times last week after cyber attacks / CNBC reports that U.S. tech stocks are now worth more than the entire European stock market Local / Discovery updated update spooks markets / Famous Brands sells Tashas back to founder / Nedbank results (we now have 3 of the big 4) / Italtile results (still spending R800m on capex a year) / Northam results, great albeit 60% of their PGM basket is platinum. Buying back Zambezi pref shares. / Murray and Roberts results. Was a tough year but doing alright before the pandemic hit in March.

Simon Shares Day 153 of lockdown and Covid-19. Pro-active passive management Investec USD SP500 Autocall Upcoming events; 03 September ~ JSE Power Hour: Under the hood of a passive robo advisor Subscribe to our feed here Sign up for email alerts as a new show goes live Master Drilling (JSE code: MDI), strong and monster cash generation which shows the cash output when they're not spending on new rigs. Absa (JSE code: ABG) profits disappeared and bad debts hit 2.77%, but they say they expect bad debt levels to improve in the second half. Itatile (JSE code: ITE) everything down around 20% and they're still spending on capex at R600million a year. Adcock Ingram (JSE code: AIP), very solid. But does the lack of a flu season hurt thier over the counter drugs? Bidcorp (JSE code: BID) negative operational leverage (Revenue R121,1 billion, down 6,3%; Trading Profit R4,2 billion, down 37,6%; HEPS 741,3 cents, down 48,6%) Nedbank (JSE code: NED) HEPS down 69.2% and bad debts at 1.9%. Forecasting in the cur

Offshore / New highs for the S&P500 (and Nasdaq) / Between the market high on Feb. 19 and new high on Aug. 18, 38% of stocks in the index made gains while the remaining 62% posted losses / Apple hits US$2trillion and gets into a fight with Fortnight / Ryanair cuts September, October capacity by 20% on weak bookings / Japan’s economy shrank by nearly 28% in the second quarter & consumer spending declined 8.2% in the period / Gold struggling to hold onto $2,000 Local / Standard Bank kicks off banking earning season / Afrimat buys Coza iron ore for R300m / Tigerbrands sells value-added meat products business 7 HEPS 35%-40% lower. / Curro results & ADvTech update / PSG unbundles Capitec at close on Tuesday. 14 for every 100 PSG shares. / Goldfields HEPS up 4x as Nick Holland quits as CEO.

Simon Shares Day 146 of lockdown and Covid-19, new cases definitely on the decline and hence we're now in level 2. S&P500 closed Tuesday at all-time highs. Sasol (JSE code: SOL) after liking the update the market does not like the results. Truworths (JSE code: TRU) has now written down GBP231million of the GBP256million they paid for Office in 2015. Afrimat (JSE code: AFT) buys Coza iron ore for R300m. Tigerbrands (JSE code: TBS) sells value-added meat products business. PSG shareholders holding the share at the close on Tuesday will receive 14 Capitec* (JSE code: CPI) shares for every 100 PSG shares. City Lodge (JSE code: CLH) rights have ceased trading and the share is off almost 30% as many sell their new shares they paid 212c for via the rights issue. Curro (JSE code: COH) results were okay but Keith McLachlan notes that their older schools are losing students at an alarming rate. Curro puts out tough results.. The real worry? Have a look at the massive outflows of students from their mature scho

Offshore US Retail sales disappoint - rise 1.2% in July vs 7.5% gain in June But new unemployment claims finally drops below 1million, the first time in 21 weeks UK GDP horror Chinese retail sales dropped 1.1% YoY, for the 7th seventh month US stimulus (trump EOs) Tesla 5:1 split via a special dividend Airbnb is filing for IPO this month with plans to go public by the end of the year. Local Sasol results (before open on Monday) Level 2 here we come? Capital Counties results City Lodge new shares start trading, they need about 35% occupancy to break even. Richemont ‘loyalty dividend’ a three-year warrant.

“This week’s episode of JSE Direct is courtesy of IG, our preferred supplier in trading products.” Simon Shares Day 139 of lockdown and Covid-19, new cases definitely on the decline. Clicks (JSE code: CLS) trading update again shows that this company is a machine. Revenue +10% for the 49 weeks to 9 August 2020. Residential property, at the lower end, doing really well. Gold $2,044 last week, hit $2,080, then $1,860. Now $1,935. US WeChat ban. Tencent (Hong Kong share code: 0700) beats expectations. Revenue up 29% YoY. Profit surges as growth hits the fastest pace in two years. Tesla (Nasdaq share code: TSLA) 5:1 split via a special dividend. Upcoming events; 20 August ~ JSE Power Hour: Pro-active passive management Subscribe to our feed here Subscribe or review us in iTunes When bad news is good news The Sasol (JSE code: SOL) trading update reports write-downs of R112billion while the market cap was R95billion and a loss per share (EPS) of around R140 while the share price was R155. Yet the stock

“This week’s episode of JSE Direct is courtesy of Outvest, our preferred supplier in retirement products.” Simon Shares Day 132 of lockdown and Covid-19, new cases definitely on the decline. Pick 'n Pay (JSE code: PIK) update was somewhat of a horror show, but I'm not sure what the market was expecting. It is for the period of lockdown and includes a voluntary retrenchment that cost the company. The Shoprite* (JSE code: SHP) on the other hand was for a full year to end June, so only three months of lockdown. Solid update and they're exiting Nigeria. Subscribe to our feed here Subscribe or review us in iTunes Gold $2,044. Goldfields (JSE code: GFI) update says HEPS will almost double and this is for the six months ending June when gold was under $1,800. Cashbuild (JSE code: CSB) buying TBC from some R1.1billion. Looks like a decent price and while they could write a cheque they'll use debt. So the question is can management execute on the merger? Intu (JSE code: ITU) will be delisted from the JSE In

Offshore / US earnings season / Q2 GDP data is coming in at about -10% / US jobless claims remain stuck at around 1.4million and CARES has ended, albeit congress is in talks / Alphabet says WFH until summer 2021 & Zuckerberg says there’s ‘no end in sight’ for Facebook employees WFH / Big tech results (Amazon, FB, Alphabet & Apple) knock it out the park / Big tech breakup congressional hearings Local / Steinhoff wants to settle claims / Europa Metals booms 16,000%, except it didn’t (500:1 consolidation) / ANG ceo quits / Vivo Energy results as fuel sales decline / GLD closes July at an all-time high / City Lodge rights issue 13:1

Simon Shares Day 126 of lockdown and Covid-19, cases may be moderating? Sasol (JSE code: SOL) sells some assets for R8.5billion and the stock is up over 12%. The sale is SA gas operations at Secunda. A sale and leaseback as Sasol only customer. But gets Sasol cash to pay down debt so good news short term, less so long-term. Korean websites also reporting on a possible 50% sale of US Ethane Cracking Center for US$3.3billion, which cost +US$12billion to build (for the other bits as well). Trading update due next week will give more details about the LCCP right downs which will surely be massive, but as importantly also maybe on the possible rights issue? Gold above US$1,900 and looking strong, albeit as I say that it'll now surely collapse in a heap as even I now own gold stocks? South Africa gets a US$4.289billion loan from the IMF. It's a very small amount and at great terms of around a 1% interest rate, albeit currency risk has to be hedged out. Upcoming events; 20 August ~ JSE Power Hour: Pro-active p

Offshore / 1.42 million Americans applied for unemployment benefits in the week ending July 18, up from 1.3 million a week earlier / Gold through $1,900 / EU leaders have agreed to a €750b ($857b) stimulus package (US is in talks for their next round of support) / Tesla into sp500 / Results; Microsoft msft & Intel intc Local / MPC rate cut / IMF loan to be announced tonight, R70billion / MTN update Vodacom / Datatec update / Sasol update

Simon Shares Day 119 of lockdown and Covid-19, cases may be moderating? Monday is 4 months of lockdown. Quantum Foods (JSE code: QFH) is coming back to earth after 1157c last Friday. Tech stocks in the US are flying. Expensive? yes, but. They have solid earnings, a moat and lots of new products they can roll out. Very solid Datatec (JSE code: DTC) update. From @keithmclachlan on Datatec valuations Westcon at $600m x R16.50 = R9bn + Logicalis x 10 PE x R16.50 = R5bn = R14bn.. Less 10% head office = R12.6bn equity value against R5bn current market cap.. Listen ==>> https://t.co/HeaMQxTCYK@Moneyweb #MoneywebNOW — Simon Brown (@SimonPB) July 22, 2020   Long4Life* (JSE code: L4L) buying back 40million shares at 275c which is less than 50% of the last stated net asset value. The PSG (JSE code:PSG) AGM talks about PSG 3.0. The Zeder (JSE code: ZED) AGM was a mess as directors didn't take all the question that were asked via the virtual system Best execution rule is coming to South Africa and this is a bi

Offshore / US jobless claims remain at around 1.3million / Netflix drops 9% on weak Q3 guidance. / Jamie Dimon’s warning for the U.S. economy — nobody knows what comes next / Amazon stock had its worst week since February / Fiscal Cliffs Threaten Fragile U.S. Recovery as stimulus expires late July / Qantas has removed all of its international flights until March of 2021 Local / Tsogo Sun Hotels sells Maia resort for wild price / CPI May 2.1%, lowest since Sep2004 / astral enters the quantum fray and price still flying / Diamond sales collapse and Richemont update / Rights issues announced, TFG R3.95 billion (40 per 100 shares, 40% discount), SUI R1.2billion (93 per 100 shares, 25% discount) / Spur CEO resigns

Simon Shares Day 112 of lockdown and Covid-19 cases are still spiking in South Africa and no drink again. Load shedding. An economy on its knees now without power. Quantum Foods (JSE code: QFH) still booming as Astral (JSE code: ARL) buys a 6.42% stake to protect their broiler supply. Bell Equipment (JSE code: BEL) trading update says HEPS to least 80% lower. CPI for May 2.1%, (3.0% in April and 4.1% in March) below the target range albeit helped a lot by petrol that has since increased. The Foschini Group (JSE code: TFG) buys Jet for R480million. Tsogo Sun Hotels (JSE code: TSG) sells its 50% interest in Seychelles Resort for $27.8million. The UK economy shrinks 19% in three months to May. The US CARES act expires on 25 July. Currently, this gives extra support ($600/week) to unemployed Americans. If it is not extended past the 25 July deadline when the last cheques will be sent, then things will get real bad real quick. Currently, the average US households get over 6% of their household income from unemp

Offshore / Germany saves. Total retail deposits rose by €22.4bn in Apr and hit fresh All-time high at €2.46tn. The volume of retail bank deposits has doubled within 18 years. / German production and export data disappoints as they have nobody to sell to in a lockdown world. / Warren Buffett’s Berkshire buys Dominion Energy natural gas assets in $10 billion deal / Uber buying Postmates / Tesla still storming higher (as is Nasdaq) / Gold strong Local / SARB bought only R5.1billion bonds in June / Load shedding is back / Everybody wants Quantum Foods / Omnia results / Updates from Liberty 2 degrees and Growthpoint / Steinhoff sells Conforama / TFG buying JET for R480m and is looking to raise R3.95 billion in a rights offer.

“This week’s episode of JSE Direct is courtesy of IG.com, our preferred supplier in trading products.” Simon Shares Day 105 of lockdown and Covid-19 cases are still spiking in South Africa. Omnia (JSE code: OMN) results. Suddenly everybody wants to own cyclical Quantum Foods (JSE code: QFH). Standard Bank ETNs are expiring next month. Gold stocks are flying and everybody is asking me if they've missed the boat? Likely not, especially as this pandemic is not just a 2020 event. Dis-Chem (JSE code: DCP) fined R1.2m for its ‘exploitative’ behaviour. They will appeal. Steinhoff JSE code: SNH) is selling its Conforama France for a nominal sum and some property for Euro70million. They paid Euro1.2billion for the business back in 2009. The Reserve Bank bought only R5.1billion of local government bonds in the secondary market in June. This after R10billion in May and R20billion in April. MultiChoice (JSE code: MCG) has launched a new streaming service, Showmax Pro, with live sport, music and news channels. Not yet

Offshore / US unemployment 11.1% / Tesla now largest motor company in the world / Advertisers bailing on facebook / Goldman Lowers U.S. GDP Forecast, Sees 4.6% Contraction in 2020 (was 4.2%) / Fitch has downgraded a record number of sovereign ratings due to the coronavirus. 33 downgrades, 40 negative watch / Brexit talks started up again Local / Q1 GDP at -2% / Barloworld results / Capitec update / 1Nvest ETNs expiring 11 August (gold, silver, platinum & palladium) / Redefine sells R7.7billion of assets to reduce LTV / Steinhoff still muddling along and publishing results

Simon Shares “This week’s episode of JSE Direct is courtesy of OUTvest, our preferred supplier in retirement products.” Day 98 of lockdown and Covid-19 cases are spiking in South Africa. Local GDP for the first quarter came in at -2%, helped by agriculture +27.8% For the first time since July 2019, PMI respondents expect conditions to improve in six months’ time. The index tracking expected business conditions rose to 51.2 in June. Overall PMI for June was 53.9 but remember this index records monthly changes in expectations so it is expected to improve as lockdown levels improve. Barloworld (JSE code: BAW) results were a horror even as they were for the period ending March. The stock lost 11.5% on Tuesday and the headline news was Tweeted by Hilton Tarrant; Avis and Budget Rent a Car Southern Africa (owned by Barloworld):

Offshore / US existing home sales fell 9.7% the lowest level since October 2010. US jobless claims dropped to 1.48m / Wirecard into bankruptcy. EY never checked the bank account of the missing cash for 3 years. / HS Markit’s Eurozone PMI Composite Output Index rose to 47.5 in June, / Microsoft permanently shutting retail stores / Nike reports unexpected loss as sales tumble 38% / Boeing 737 MAX certification flight tests to begin today Local / Supplementary budget & GDP tomorrow / Capital raises; City Lodge, Sun International, Pepkor, Harmony / Stor-Age* results / Telkom results, dividend cancelled to fund spectrum / Intu is not able to make a deal with lenders. Stock suspended on the JSE / Solid JSE trading update as volumes soared during the period