Simon Shares

• Nasdaq (650 points), S&P500 (80 points) & Euro Stoxx50 (22 points) trades all closed. FTSE100 still going currently +100 points.
• Old Mutual BEE deal, will go into details, but it only closes in late October so no rush.
• Spur (JSE code: SUR) looking very good.
  • PE ±15x and DY ±5%
  • From the Spur earnings call “And we know that only 18% of the South African adult population represents 80% of economically viable consumer segment.”
    • Revenue at record with space to get margins back to pre-pandemic levels. Net income margin was ±5%, historically over 20%.

• 

  Spur; revenue, net income, NI margin

  Afrimat (JSE code: AFT) Gravenhage manganese mine deal failing due to the Water Use License being materially different. They raised ±R650million last month.

• Purple Group* (JSE code: PPE) does a deal in Asia.
• Kap Industrials (JSE code: KAP) good results and great insights into other industries.
• Citi now says UK inflation to hit 18% early next year (last week they said 15%).
• Sasol (JSE code: SOL) pays a dividend, 1470c.

Sasol: To answer a separate Q:
The EBIT profit split is:
•Energy: 58%
•Chemicals: 42%
(Despite the high chemicals contribution, it is amazing to see how closely Sasol’s profit still conforms to the old back-of-a-matchbox calc of 5% of the Rand oil price.)

— Karin Richards (@Richards_Karin) August 23, 2022

* I hold ungeared positions.

Thursdays are all about hard-core investing 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 chats to industry experts, answers listener question (contact him here to send your Q’s) and gives his views on the state of markets and individual shares.

Reach Simon by email at [email protected],

or Twitter @SimonPB