Podcast: Updates and discounts

Simon Shares

Deutsche Bank has redeemed three of their ETNs. DBCHIN, DBEMER & DBAFRI. As ETNs they would have expired anyway, but that was due to happen next June. Holders of these ETNs last week will receive cash at net asset value (NAV) for the ETNs and it also means Deutsche Bank is no longer active in the listed passive space on the JSE.
Richemont* (JSE code: CFR) trading update was strong, but with one concern – online. Single digit growth is very pedestrian for online even if they had issues with flooding at one of their warehouses.
Strong Shoprite* (JSE code: SHP) trading update. Revenue +7%. Rest of the continent is still struggling, home local was lekker.
Wednesday saw Naspers (JSE code: NPN) sold 22million (1.4%) or their Prosus (JSE code: PRX) holding at a price of about R1,080. Naspers claims this is due to demand for the shares from investors. Prosus was off some 3% at just over R1,100. The logic here was that many would buy their new Prosus and sell straight away into the market, netting a small but easy profit in about half an hour. Prosus price will rebound, Naspers was trading up almost 2% as this sale happened. Nasper has said they’ll use the Euro1.5billion (about R100billion) for a share buy-back in another attempt to close the discount that exists. But as Piet Viljoen of RE:CM points out in the Tweets below, it’s not likely to work.

1. Firstly, one has to recognize that the market is generally right about things, and it pays to listen to it. So what is the market saying when an investment holding company trades at a big discount to its core asset.?

— Piet Viljoen (@pietviljoen) January 22, 2020

How to start saving (Cash Club)
Three secret ETF fees
OUTvest ONEfee RA at 0.2%
Upcoming events;
- 20 February ~ A new Tax-free year starts

* I hold ungeared positions.

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