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Shoprite* Results and Market Comparison
- Discusses the recent Shoprite results, emphasising excellent performance against a high base.
- Highlights Shoprite’s significant CapEx spending, customer savings, and market share gains.
- Compares market cap of Pick n Pay and Shoprite, pointing out the latter’s cash reserves.
- Reflects on the historical revenue comparison between Shoprite and Pick n Pay over the past 20 years.
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Shoprite vs Pick n Pay revenue last 20 years
Shoprite’s Competitive Position and Stock Analysis
- Questions whether Shoprite is always destined to be an expensive stock.
- Analyzes the current PE ratio, forward PE, and 10-year mean, suggesting that the stock may not be as expensive as perceived.
- Shares consensus forecasts and target prices for Shoprite, indicating a potential undervaluation.
- Expresses the belief that Shoprite at ±R270 might not be as expensive as it appears, drawing parallels with the valuation of Nvidia.
- Shoprite’s Success Factors and Pick n Pay’s Struggles
- Explores the factors contributing to Shoprite’s success, including central distribution centers and efficiency.
- Contrasts Shoprite’s strategy with Pick n Pay’s challenges, noting a decline in consumer satisfaction.
- Mentions Pick n Pay’s recent financial struggles, including a rights issue and debt increase.
Gold and Bitcoin at All-Time Highs
- Addresses the unusual situation of both gold and Bitcoin reaching all-time highs simultaneously.
- Discusses the fears driving gold prices, such as inflation, interest rates, conflicts, and global elections.
- Highlights gold’s potential target of $2,500 and the positive impact on gold mining profits.
- Shares the performance of various gold mining stocks over the past three years.
Gold miners vs. gold in Rands over last three years.
Canal+ Offer for MultiChoice
- Updates listeners on Canal+’s revised offer of R125 per share for MultiChoice, which is currently trading at R113.50.
- Discusses the time value and risk value of the deal, expressing the view that this might be the final offer.
Finance Costs and Corporate South Africa
- Examines the increase in net finance costs for Sea Harvest, attributed to higher interest rates.
- Acknowledges the challenges faced by Corporate South Africa, including Eskom issues, logistic challenges, and rising interest rates.
- Assures listeners that some of these challenges may start to fade away in the future.
* Simon holds ungeared positions.
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JSE – The JSE is a registered trademark of the JSE Limited.
JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.
Thursdays are all about hard-core investing and trading with Simon Brown’s famous JSE Direct podcast. JSE Direct started life on ClassicFM in July 2008 and became a podcast in 2011. Every week Simon shares his views on the state of global economies, individual shares and events moving markets.
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JSE – The JSE is a registered trademark of the JSE Limited.
JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.
