Old Mutual Results:
- Surprisingly strong results from Old Mutual.
- Despite stagnant GDP growth and population decline, Old Mutual shows strong growth, indicating market share acquisition.
- Expansion into banking sector questioned due to market saturation.
- Stock analysis: Trading around 1184, showing potential support at 1150 and resistance at 1240-1280.
- Considered cheap with PE ratio around 7.7 and dividend yield over 7%.
- Market consensus predicts an average price target of 14.81.
- Skepticism remains regarding the bank launch and overall upside potential.
MTN Results and Analysis:
- MTN’s earnings affected by Naira devaluation in Nigeria.
- Earnings per share down 72%, impacted by tax issues and currency devaluation.
- Stock analysis: Chart showing positive signs, with potential for short-term growth.
- Market consensus includes three strong sells, five holds, and four buys.
- Telco sector struggles due to price pressures and constant capital expenditure.
- Limited upside potential for telco stocks, including MTN.
ADvTech* Results and Operational Leverage:
- ADvTech demonstrates strong operational leverage.
- Operational margins increase due to improved student occupancy rates.
- Revenue up 13%, HEPS up 19%, and dividend per share up 45%.
- Stock analysis: Notably increased in value but still offers potential growth.
- Expectations for around 15% growth in the future.
- Simon Brown expresses satisfaction as a long-term shareholder in ADvTech.
Monetary Policy Committee (MPC) Meeting Insights:
- MPC meeting concludes with no change in rates.
- Governor’s hawkish stance indicates possible rate cuts later in the year.
- Inflationary pressures expected to persist due to global factors.
- Delayed rate cuts expected due to inflation concerns.
SALTA Awards Highlights (full details here):
- Simon Brown attends the SALTA Awards.
- Satrix emerges as the big winner with 10 awards.
- People’s Choice Awards highlight popular ETFs, with Satrix Top 40 winning for the seventh consecutive year.
- Introduction of a new award category for foreign ETFs.
- Importance of industry events in highlighting the significance of ETFs and listed trackers.
Simon Brown
* Simon holds ungeared positions.
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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.
