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Our opinion on the current state of MTAMetair (MTA) produces energy solutions (batteries) and components for the vehicle manufacturing business. It has operations in Africa and in various European and Middle East countries. The company's energy storage business is located in Turkey in an operation called "Mutlu". The business it is in has the prospect of growing rapidly as electric motor vehicles replace those powered by internal combustion engines. The company has announced its intention to split into its European acid battery business and its automotive components business in South Africa. In a report on the impact of the floods in Natal, the company said, "Whilst the impact on Metair’s facilities was minimal and operations had promptly returned to normal, a major Original Equipment Manufacturer (OEM) customer of the Group advised that it suffered significant damage to its plant with production suspended for clean-up operations and assessments to be carried out." The company received a R150m insurance pay out for business interruption from the Natal floods. In its results for the six months to 30th June 2023, the company reported revenue up 31% and headline earnings per share (HEPS) down 9%. The company's net asset value (NAV) increased 3% to 2615c per share. The company said, "Group revenue increased 31% to R7.6 billion (H1’22: R5.8 billion), reflecting the recovery in local OEM volumes following the KZN floods and the resulting loss of sales to the group’s key customer in FY’22. The group also commenced mass production and volume ramp-up for new customer vehicle models, most notably for FMCSA (“Ford”). Group operating profit increased by R180 million to R324 million (H1’22: R144 million) and operating margin improved to 4.2% (H1’22: 2.5%)." In a trading statement for the year to 31st December 2023, the company estimated that HEPS would be between 128c and 140c compared with a loss of 17c in the previous year. The company said, "South African OEM production volumes grew 20% from 2022, improving top-line growth in the Group's automotive components business. Automotive battery volumes sold in the Energy Storage Vertical declined 17% from 8.7 million to 7.3 million units, mainly due to the loss of export volumes primarily in Mutlu Akü." The share has been falling since October 2021 and the recent results appear to have accelerated that fall. We recommend waiting for a break up through its downward trendline before investigating further. On 22nd March 2023, the company announced that its CEO, Riaz Haffejee, would resign with effect from the end of that month. On 6th December 2023, the company announced that its CEO, Sjoerd Douwenga, would resign with effect from 31st January 2024 due to ill health.
JSE:MTA
by PDSnetSA
Our opinion on the current state of ABGABSA (ABG) is one of the largest banking groups operating in Africa. It has well-established branches in 12 African countries and representative offices in at least 6 more. It offers a range of products for personal and business banking, credit cards, insurance, and asset management. Obviously, as one of the "big five" banks, ABSA has been impacted by the recession in South Africa and the generally low consumer spending in the economy. The company announced a joint venture with Patrice Motsepe's African Rainbow Energy to launch a R6,5bn renewable energy fund. ABSA is certainly a blue-chip share and is worthy of your attention. The separation from Barclays is now complete. On 31st March 2023, the company announced a BBBEE transaction that will take its Black ownership to more than 25%. In its results for the year to 31st December 2023, the company reported headline earnings per share (HEPS) up 0,6% and total income up 8,1%. The company's net asset value (NAV) increased by 7,3% to 16828c per share. Return on equity (EOQ) was 15,3% unchanged from the previous year. Technically, the share made a low in March 2020 and then moved sideways for the next six months before beginning a new upward trend which is continuing. We are generally very positive about the potential of banking shares on the JSE. On a P:E of 6,54 and a dividend yield (DY) of 6,92, ABSA looks cheap to us.
JSE:ABG
by PDSnetSA
Our opinion on the current state of EPEEthos Capital Partners (EPE) is a private equity fund (PEF), incorporated in Mauritius, which invests into unlisted companies for long-term capital appreciation on behalf of its investors. Like most investment holding companies, Ethos trades at a significant discount to its net asset value (NAV). Fifty-six percent of their assets are in South Africa and 39% in the rest of Africa. It has stakes in Tymebank, Ster Kinekor and Brait. The risk in this company appears to be minimal since it does not invest a significant proportion of its funds in any one investment and its investments have performed well in the circumstances. It does not pay dividends, so the investor has to look for a capital gain. In its results for the six months to 31st December 2023, the company reported net asset value (NAV) down 15% at 731c per share. The company said, "The value of the unlisted portfolio was slightly down (3%) over the six-month period, with positive returns from Synerlytic, Crossfin, Gammatek and TymeBank and Twinsaver offset by devaluations in Echo, Kevro and Optasia (which was impacted by the significant devaluation in the Nigerian Naira ("NGN"))." The share is well-traded with an average of over R325 000 worth of shares changing hands every day. It made a low at 370c on 25th March 2020 and has since started to move up as its investments recover from COVID-19 restrictions and more recently from the sell-off due to Ukraine crisis. In our opinion, this should turn out to be a good investment at current levels where it is still trading well below its NAV - depending on the progress of the current trend in world markets.
JSE:EPE
by PDSnetSA
Our opinion on the current state of RFGRhodes Food Group (RFG), with its roots tracing back to Cecil John Rhodes in 1896, has grown into a prominent Western Cape manufacturer of convenience foods. The company boasts a broad portfolio of well-known South African brands such as Bisto, Bull Brand, and Hinds, operating across 15 manufacturing plants in South Africa and a fruit processing facility in Swaziland. For the year ending on 1st October 2023, Rhodes Food Group reported an 8.7% increase in revenue and a significant 35.3% rise in headline earnings per share (HEPS), alongside an improved debt-to-equity ratio from 36.2% to 21.3%. However, the company faced challenges with a 12.9% price inflation and a decline in total group volumes by 8.3%, attributed to slower consumer spending and competitor promotional activities. Despite these hurdles, the rate of volume decline showed signs of slowing, especially in regional volumes. The trading update for the five months ending on 29th February 2024 revealed a 5.1% revenue increase with price inflation at 7.9%, while volumes decreased by 5.2%. This period saw a deceleration in sales of long-life foods, particularly in January and February, although the meat products category continued its positive performance from the previous financial year. The company also noted improvements in the vegetables and salads categories, with the fruit juice and dry foods categories delivering robust growth. From a technical analysis perspective, Rhodes Food Group's share has been in a bear trend since reaching a peak of 2900c in October 2016. However, a significant development occurred on 13th November 2023, when the share price broke through its long-term downward trendline at 1220c. Currently trading at a price-to-earnings (P:E) ratio of 6.88, the stock appears reasonably priced, if not undervalued. Looking forward, there is optimism for Rhodes Food Group's recovery over time, driven by improvements in the South African economy, the resolution of the war in Ukraine, and potential normalization of trade relations, including tinned food sales to China, which experienced a sharp decline in the short term. Given its established brand portfolio, manufacturing capabilities, and strategic responses to market challenges, Rhodes Food Group is positioned to navigate the complexities of the convenience food sector and capitalize on emerging opportunities for growth and expansion.
JSE:RFG
by PDSnetSA
Our opinion on the current state of LTELighthouse Capital (LTE), formerly known as Greenbay, aims to redefine its market position and strategic focus in the wake of challenges faced by the Resilient group of REITs (Real Estate Investment Trusts), which also includes Resilient, Rockcastle, and Fortress. These companies were previously embroiled in controversy following a report by 36One Asset Management, which criticized their cross-shareholdings and their impact on share prices. Lighthouse, particularly, experienced a significant drop in share price from 5420c in December 2017 to as low as 688c in February 2019, following a 20-for-1 share consolidation in November 2018. Under the leadership of CEO Stephen Delport, Lighthouse Capital is pivoting towards investing predominantly in high-performing assets in Europe, allocating about 80% of its capital to this region. The company's decision to change its name from Greenbay to Lighthouse signifies an effort to distance itself from the Resilient group and establish an independent identity within the property investment sector. This rebranding comes after the Financial Sector Conduct Authority (FSCA) cleared Lighthouse of any involvement in price manipulation within the Resilient group, and subsequent findings in September 2019 exonerated all members of the group from any wrongdoing. Lighthouse's investment strategy includes significant holdings, such as 882 million shares in Hammerson, valued at approximately 405 million euros as of 3rd May 2021. Additionally, following Resilient's increase in shareholding to over 35% in May 2021, a mandatory offer for the remaining issued shares of Lighthouse was announced at 713c per share. The successful raising of R2.6 billion through an oversubscribed bookbuild in August 2021, aimed at acquiring four shopping malls in France, underscores Lighthouse's ongoing investment activities and growth initiatives. For the fiscal year ending 31st December 2023, Lighthouse reported a distribution of 2.7 euro cents per share, slightly down from 3.25 cents in the previous period. However, the company's net asset value (NAV) increased to 42 euro cents from 40.5 cents, with a low loan-to-value (LTV) ratio of 14%. Looking ahead, Lighthouse forecasts a distribution of between 2.40 and 2.50 EUR cents per share for FY2024, reflecting a cautiously optimistic outlook in the context of improving macroeconomic conditions, with anticipated reductions in inflation and short-term interest rates in 2024. Despite experiencing an extended period of sideways market movement, Lighthouse shares have shown signs of an upward trend since October 2023. This positive momentum, coupled with Lighthouse's strategic refocusing on European assets and its status as a rand hedge investment, suggests that the company is positioned as an attractive investment option at current levels for those seeking exposure to the European real estate market.
JSE:LTE
by PDSnetSA
Our opinion on the current state of REMRemgro, led by Johann Rupert, operates as an influential investment holding company with a diverse portfolio spanning various sectors. It holds a significant 28.2% stake in Rand Merchant Bank Holdings (RMH) and a 3.9% stake in Firstrand. Beyond its financial sector investments, Remgro's interests extend to healthcare through Mediclinic, now delisted from the JSE, highlighting its strategic focus on international healthcare markets including Switzerland, Southern Africa, and the United Arab Emirates. The company's strategic divestment from the London-listed Unilever Group, which resulted in a R4.9 billion cash infusion plus ownership of the Unilever spreads business in Southern Africa, underscores Remgro's adept maneuvering within the global business landscape. This move expanded its presence in the foods division, adding brands like Flora and Rama to its portfolio and potentially integrating these assets into a new subsidiary under RCL Foods, named "Silver 2017." In the insurance sector, Remgro maintains a 29.9% stake in RMI, alongside other notable investments such as a 23.1% stake in Grindrod and a 30% stake in Seacom. The acquisition of Vumatel by Remgro subsidiary Community Investment Ventures Holdings (CIVH), emphasizing Vumatel's commitment to providing free uncapped fibre services to schools, illustrates Remgro's dedication to social responsibility and infrastructure development. Remgro's interest in expanding its portfolio into the electricity generation sector to ensure reliable energy supply for its businesses, coupled with its significant transactions involving Heineken's acquisition of Distell and the formation of "Infraco" with Vodacom, reflects its strategic vision and proactive approach to leveraging corporate actions for growth. The company's bold move to acquire the remaining 55% of Mediclinic, leading to its delisting from the JSE, represents a significant valuation and investment in the healthcare sector. For the fiscal year ending 30th June 2023, Remgro reported a revenue increase to R48.1 billion and an 8.9% rise in HEPS, alongside a notable 16.6% increase in intrinsic net asset value (INAV) to 24847c per share. These financial achievements highlight the positive impact of its strategic decisions, including corporate actions related to OUTsurance, Grindship, Grindrod, and Mediclinic, on its overall performance. However, a trading statement for the six months ending 31st December 2023 projects a significant decline in HEPS by 35% to 45%, attributed to the effects of recent corporate actions, many of which are non-recurring items. This anticipated decrease reflects the dynamic nature of Remgro's investment strategy and the impact of its corporate restructuring and transactions. Despite the forecasted decline in earnings, Remgro's share has been on an upward trajectory since September 2020, currently trading at a P:E of 11.86. This valuation suggests that Remgro remains an attractive investment, offering good value at current levels, particularly for investors seeking exposure to a diversified portfolio with a strong focus on strategic growth and restructuring initiatives within South Africa and beyond.
JSE:REM
by PDSnetSA
BYI: bullish crossoverqA price action above 13900 supports a bullish trend direction. Increase exposure for a break above 14600. The target price is set at 15600. The stop-loss price is set at 1300. Crossing above the 38,2% Fibonacci retracement level might support the bullish price action. The MACD bullish crossover (see the lower panel) might support the bullish underlying trend. Notice that the price action remains above its 200-day, supporting a bullish underlying trend.
JSE:BYILong
by Peet_Serfontein
Our opinion on the current state of ARIAfrican Rainbow Minerals (ARI), under the leadership of Patrice Motsepe, stands as a notable diversified mining company in South Africa, with operations spanning across a wide range of minerals including platinum group metals (PGM), iron ore, manganese, chrome, coal, copper, and a strategic ownership stake in Harmony Gold. The potential involvement in the Wafi-Golpu copper and gold project, co-owned by Harmony and Newcrest, highlights ARM's interest in expanding its portfolio, especially considering Harmony's search for financial partners to develop this significant resource with an estimated development cost of around R21bn. ARM's interest in acquiring "green metals" mines, which produce metals crucial for climate change mitigation efforts, aligns with global trends towards sustainable and responsible mining practices. This strategic direction not only diversifies ARM's portfolio but also positions the company at the forefront of the transition towards a greener economy. For the fiscal year ending 31st December 2023, ARM reported a 43% decline in headline earnings, alongside a net cash position of R7935m. The financial year saw a weakened average rand exchange rate against the US dollar and a 6% increase in export iron ore sales. However, ARM Platinum faced significant challenges, reporting a loss of R282 million, a stark contrast to the previous period's earnings, primarily due to depressed commodity prices and above-inflation unit cost increases. The share performance of ARM has been impacted by falling commodity prices since the beginning of 2023, indicating potential challenges ahead. However, the possibility of reaching a bottom suggests an opportunity for recovery and growth, especially given ARM's strategic focus on diversification and interest in base and green metals. ARM's potential involvement in projects like Wafi-Golpu, coupled with its focus on expanding into metals pivotal for environmental sustainability, underscores the company's adaptive strategy in a rapidly evolving global mining landscape. While investments in new ventures such as Wafi-Golpu present inherent risks and require a long-term commitment, ARM's diversified portfolio and strategic focus on essential and sustainable metals could provide a stabilizing factor for the company. Investors considering ARM as a potential addition to their portfolios should weigh the benefits of the company's diversification and strategic positioning against the risks associated with volatile commodity prices and significant capital investments in new projects. ARM's commitment to expanding its base and green metals portfolio, while risky, signals a forward-looking approach that could yield substantial rewards as global demand for sustainable and critical minerals continues to grow.
JSE:ARI
by PDSnetSA
Our opinion on the current state of CATCaxton and CTP Publishers and Printers Limited (CAT) is navigating through the significant shifts within the South African printing and publishing industry, where the transition from hard copy to digital platforms is increasingly pronounced. The company is actively adjusting its operations by cutting costs and venturing into digital mediums to counter the ongoing erosion of advertising revenue and the declining trend in magazine purchases, which had been evident even before the COVID-19 pandemic struck. For the six-month period ending 31st December 2023, Caxton reported a slight decrease in revenue by 3.3% and a 6.2% reduction in headline earnings per share (HEPS). Despite these challenges, the company's net asset value (NAV) experienced a 7.5% increase to 2065c per share, demonstrating Caxton's underlying asset strength amidst operational adjustments. The reported revenue decline, including the sale and closure of a subsidiary which accounted for R163.7 million of the decrease, masked a slight underlying revenue increase of R36.2 million when excluding these factors. This reveals a nuanced financial performance, with the company's publishing and printing operations facing reduced throughputs and an overall decline in media advertising revenues. Caxton's share price movement has shown resilience and adaptability in a challenging environment. The share broke out of an island formation in 2021, marking the beginning of an upward trend. This technical indicator may suggest a growing investor confidence in Caxton's strategic redirection towards digital platforms and its ability to manage the transition effectively. As Caxton continues to refine its digital strategy and optimize its cost structure, the company's efforts to maintain and potentially grow its asset value amid declining traditional revenue streams highlight its commitment to evolving in line with industry trends. Investors observing Caxton's progress might see the company's strategic adjustments and the positive NAV movement as indicators of its potential to successfully navigate the digital transition, despite the current headwinds in revenue and earnings.
JSE:CAT
by PDSnetSA
Our opinion on the current state of FFBFortress REIT Limited, trading on the Johannesburg Stock Exchange (JSE) under the tickers FFA and FFB, represents a significant entity within the real estate investment trust sector. The trust manages a diverse portfolio that not only encompasses direct property holdings valued at around R30 billion, focusing on logistics, offices, and commuter retail sectors but also includes substantial investments in other REITs, notably Nepi Rockcastle and Lighthouse (formerly known as Greenbay). Fortress operates a dual share structure, comprising lower-risk "A" shares (FFA) and higher-risk "B" shares (FFB). The "A" shares offer dividends that increase by the lesser of CPI or 5% per period, providing a level of income stability. In contrast, the "B" shares are entitled to any residual income after the "A" shares have been compensated, alongside a preferential payout in the event of winding up. This structure allows investors to choose their preferred risk and return profile within the same entity. Notably, Fortress still holds a 23.3% stake in Nepi-Rockcastle, underlining its strategic investment footprint. The impact of the flooding in Natal in April 2022, which affected 4 properties or approximately 2% of its gross lettable area (GLA), was reported to be minor and non-structural. This incident underscores the resilience of Fortress's property portfolio and its capacity to withstand environmental challenges with minimal disruption. For the six-month period ending 31st December 2023, Fortress reported a total revenue increase of 14.3%, despite a decrease in headline earnings per share (HEPS) for both "A" and "B" shares by 24.3%. However, the trust's net asset value per share (NAVB) saw a significant increase of 18.5% to 1624c, and its loan to value (LTV) ratio was maintained at a healthy 34.2% by the period's end. These financial metrics reflect a complex interplay between revenue growth and earnings performance, coupled with a robust increase in asset valuation. The "B" shares (FFB) of Fortress are currently exhibiting a strong upward trend in the market, indicating their perceived value by investors. Despite the recent downturn in earnings, the overall financial health of the trust, marked by revenue growth, increased asset valuation, and a reasonable LTV ratio, suggests that Fortress remains an attractive investment option. The upward trend in the "B" shares, in particular, may reflect market optimism about the trust's future prospects and its strategic positioning within the South African real estate sector.
JSE:FFB
by PDSnetSA
Our opinion on the current state of MPTMpact, a prominent player in the paper and plastics packaging industry in Southern Africa, plays a crucial role in recycling paper and cardboard while producing a range of packaging solutions, including corrugated cardboard containers and polystyrene trays for various sectors, most notably the food industry. Operating 20 manufacturing facilities and employing over 5,000 individuals, Mpact's business primarily thrives in the South African market, which accounts for 86% of its sales. The company's performance is closely tied to consumer spending trends, which have seen fluctuations due to the COVID-19 pandemic and were further influenced by the onset of the Ukraine crisis. Additionally, Mpact's operations are affected by weather conditions, especially in regions like the Cape, where agricultural demand for corrugated containers is weather-dependent. In navigating the challenges of the current economic landscape, including load shedding and public infrastructure failures, Mpact has strategically focused on cash preservation and leveraging local suppliers amidst global supply chain disruptions caused by the pandemic. For the fiscal year ending 31st December 2023, Mpact reported an 8% increase in headline earnings per share (HEPS) and an 11.2% rise in net asset value per share to 3363c. This performance reflects the resilience and adaptability of Mpact in the face of a weak economy burdened by high interest rates and prolonged inflation. Despite a significant drop in share price from a high of R51 in April 2016 to around R8 in March 2020, Mpact's shares have shown recovery, currently trading at 2808c. However, the share experienced a decline in response to the Ukraine crisis. At its current price, Mpact trades at an earnings multiple of 5.48, suggesting that the shares are undervalued relative to the company's earnings potential. From a technical perspective, Mpact's shares appear to be on the cusp of entering a new upward trend, although they have been moving sideways since August 2022. This pattern indicates a potential shift in investor sentiment and market dynamics, possibly reflecting a growing recognition of Mpact's value proposition amid evolving economic conditions. In summary, Mpact presents an intriguing investment opportunity, particularly for those looking to invest in a company with a strong focus on sustainability through recycling, and resilience in navigating economic challenges. The current valuation suggests that Mpact's shares are attractively priced, offering potential for growth as the company continues to adapt and thrive in the Southern African packaging industry.
JSE:MPT
by PDSnetSA
Our opinion on the current state of TLMTelemasters Holdings Limited (TLM) operates as a comprehensive provider in the telecommunications sector, offering a variety of voice, data, and cloud communications solutions. Its operational structure is organized into three primary divisions: voice, cloud PBX, and internet. The company encompasses several subsidiaries, each specializing in distinct areas of ICT managed solutions, Unified Communications (UC) platforms, network systems integration, and data center operations. These subsidiaries include Catalytic Connections (Pty) Limited, Contineo Virtual Communications (Pty) Limited, PerfectWorx Consulting (Pty) Limited, and Ultra Data Centre (Pty) Limited, the latter of which has established a data center outside Pretoria. For the fiscal year ending 30th June 2023, Telemasters reported a slight decrease in revenue by 1.3%, alongside a notable improvement in headline earnings per share (HEPS) from a loss of 3.73c in the previous year to a gain of 0.81c. This turnaround to operating profit, with a year-on-year improvement of R2.8 million, highlights the company's successful recovery and operational efficiency. The data center business, in particular, has emerged as a growing and profitable segment, contributing to the overall improvement in earnings before interest, taxes, depreciation, and amortization (EBITDA), which rose to R8 million from R7 million in the prior year. Additionally, Telemasters has maintained its dividend policy, declaring dividends of 0.85 cents per share during the year. Looking ahead to the six months ending 31st December 2023, Telemasters has projected at least a 100% increase in HEPS, signaling strong performance and optimism for its future operations. However, the company's stock is characterized by limited liquidity, with daily trading volumes of less than R1400, primarily due to the majority of shares being held by a single shareholder, the Maison D-Obsession Trust. This concentration of ownership poses a significant challenge for private investors, making it impractical to engage in trading Telemasters shares due to the difficulties in executing trades and the potential impact on share price from small transactions. Despite these trading challenges, Telemasters' operational advancements and strategic focus on profitable segments like its data center business demonstrate its potential for growth and stability within the telecommunications sector. Investors and market watchers may find Telemasters an interesting case of a company achieving operational turnaround and growth in specific niches, although the practical aspects of investing in such a thinly traded stock require careful consideration.
JSE:TLM
by PDSnetSA
Our opinion on the current state of Capitec Bank Holdings Limited (CPI), with its roots in PSG, has dramatically transformed the South African banking landscape, establishing itself as the largest bank in the country by customer numbers, with over 21.1 million clients. Its innovative approach to banking, characterized by affordable and accessible services, particularly for the previously unbanked segments of the population, has enabled it to consistently capture market share from traditional banking institutions. The introduction of around 90,000 funeral policies each month further underscores Capitec's expansion into diverse financial products and its deepening engagement with its client base. The decision by PSG to unbundle its holding of Capitec shares, aimed at unlocking shareholder value, marks a significant milestone in Capitec's journey, emphasizing its independence and growth potential. Despite Capitec's vast client base primarily residing in the lower living standards measure (LSM) levels and holding less than 10% of the retail deposit base, its remarkable average annual growth in headline earnings per share (HEPS) of 32.2% over the past 19 years since 2003 stands as a testament to its exceptional performance and strategic execution. The bank's initiative to conduct a Broad-Based Black Economic Empowerment (BBBEE) transaction by allocating approximately R1 billion worth of shares to long-serving staff illustrates its commitment to inclusivity and empowerment, despite the temporary dilutive impact on its share price. For the six-month period ending 31st August 2023, Capitec reported a 17% increase in net interest income and a 9% rise in HEPS, driven by its continuous investment in innovation and an 11% growth in the number of active clients, leading to an 18% surge in retail transaction volumes. Looking ahead to the financial year ending 29th February 2024, Capitec anticipates a HEPS increase of between 14% and 16%, highlighting the bank's robust performance, particularly in net transaction and commission income, propelled by the digital engagement of its expanding client base. Despite trading at a price-to-earnings (P:E) multiple of 24.85, significantly above the JSE Overall index and other leading banks, Capitec's value proposition remains compelling. Its proven track record of growth, innovation, and market penetration, combined with strong financial performance and strategic initiatives, positions Capitec as a valuable addition to any private investor's portfolio. The recommendation to accumulate shares on weakness reflects confidence in Capitec's continued growth trajectory and its role as a major disruptor and innovator within the South African banking sector.
JSE:CPI
by PDSnetSA
Our opinion on the current state of MNPMondi, originating from South Africa, has evolved into a global powerhouse within the paper and packaging industry, with operations spanning 30 countries and employing around 26,000 individuals across approximately 100 sites. Its business encompasses the entire spectrum of packaging, managing forests, producing wood pulp, paper, and plastic films for a variety of packaging solutions. The professionalism with which Mondi is managed has positioned it as a leader in its field. The company's operations have been significantly influenced by the ongoing Ukraine crisis. Particularly noteworthy was Mondi's presence in Russia, which accounted for about 12% of the group's revenue, with key assets including an integrated pulp, packaging paper, and uncoated fine paper mill in Syktyvkar, Komi Republic. The decision to divest from its Russian holdings, with a net asset value of €687 million as of 31st December 2021, was a critical strategic move. The sale of its personal care business for €615 million in July 2022 and its Russian subsidiary for approximately R25 billion in August 2022, underscore Mondi's responsive and decisive actions in navigating geopolitical challenges. For the fiscal year ending 31st December 2023, Mondi reported a decrease in revenue by 18% and a significant 45% drop in headline earnings per share (HEPS), reflecting the challenging global business environment. Despite these declines, the company's strong cash generation of €1,312 million, surpassing the previous year's performance, highlights its resilience and operational efficiency. Mondi's current valuation on a price:earnings multiple (P:E) of 11.14 suggests it may be undervalued, considering its blue-chip status. However, the potential for further downward movements in the share price cannot be overlooked. The company's share price trajectory has experienced fluctuations, particularly with the destabilizing impact of the Ukraine crisis in March 2022. Yet, signs of a new upward trend are emerging, buoyed by the increasing demand for packaging materials driven by the worldwide shift to online shopping and potential resolutions to the Ukraine crisis. The recent announcement on 8th March 2024 of Mondi's acquisition of a 54% stake in LSE-listed DS Smith Plc for GBP 5.14 billion marks a significant expansion and consolidation within the packaging industry. This strategic acquisition is poised to enhance Mondi's market position and operational capabilities further. In conclusion, despite facing geopolitical and market challenges, Mondi's strategic divestitures, robust cash generation, and recent strategic acquisition indicate a company poised for recovery and growth. The global shift towards more sustainable packaging solutions and the resolution of geopolitical tensions are likely to serve as catalysts for Mondi's continued success and upward trajectory in the market.
JSE:MNP
by PDSnetSA
Waiting for a rare South African miracle With the uncertainty looming around with elections happening this year in May it is best to wait until the everything settles, Pick n Pay still has customers who are or might be still loyal to the brand because of what it delivers and their smart shopper systems which people have and understand. The share price has been falling due to working conditions like heavy load shedding hitting some areas harder than others. We hope during the year that the reserve bank will drop rates by few points to encourage consumers to spend more between the second half of the year until the festive season and going into a new year. Price could reach the near lows of R1403 per share and R1130 which are lowest prices since Pick n Pay started trading in the JSE. A company with deep roots in its country can only rely on hope and a miracle outside its control. The numbers won't lie the next three quarters.
JSE:PIK
by KhoraCapital
UPDATE: Pan Africa hit the target at R.475 - Do we sell?Well this analysis took forever. The price broke above the Broadening Reverse Symmetrical Triangle (If there is such a thing) in June 2023. If you held on this long to exit and bank a profit, you would be lucky if you even made some money considering the daily interest charges on CFDs... However as a share and equity investor, this position would have been the perfect medium term trade. Sometimes, when I project such large targets, I think of just going back into equities. Regardless, the trend id still up - Gold is still bullish and out other Gold positions are all longs. So, keep to the trend until it bends... Uncle T out.
JSE:PANLong
by Timonrosso
1
SSWPart of my note for tomorrow: SSW Sibanye Stillwater was not included in yesterday’s (published) Tactical Trading Guide as it was not one of the largest 40 in terms of market capitalization. It did however appear on the technical summary as ‘high bearish momentum/approaching oversold’. In terms of the Tactical Trading Guide (my raw/sorted data), I noticed that yesterday’s pre-market reading (Tuesday end of day) stated the following for the short term (1 to 10 days) time frame: ““Reward-to-risk becoming attractive for a small buy/long position”. Yesterday we saw the share being bought up(at the previous swing lows to end the day with a +4.5% gain. From a price momentum perspective, there is lot’s of work/repair to be done however, the candle structure is encouraging and may be the start of the development of a technical base. Yesterday's short term reading (1 to 10 days) is as follows: "Attempting a rebound following a downward trend. May stabilize (consolidate) further before continuing higher."
JSE:SSW
by techpers
TARGET 1 reached - Next target is even higher to R28.68Bell Equipment reached our first target R20.54 in November 2023. It then had a mark-up phase before consolidating into a W Formation. Once the price broke above, we knew demand and buying was still on the cards. technically we have price above both 20MA and 200MA. So the next target for Bell Equipment is set to R28.68. ABOUT THE COMPANY Bell Equipment is a pivotal player in South Africa's heavy equipment industry, renowned for its strong and reliable machinery, particularly in the construction, mining, quarrying, agriculture, forestry, and waste handling sectors. Foundation and Specialization: Established over sixty years ago, Bell Equipment has become South Africa's only major designer, manufacturer, and distributor of heavy equipment, recognized globally as a specialist in articulated dump trucks (ADTs)​​. Core Product: The ADT is Bell Equipment's core product, showcasing the company's innovation and leading performance globally. Bell ADTs are exported worldwide from their manufacturing plants in South Africa and Germany​​. Product Range and Strategic Dealerships: In addition to its own products, Bell holds strategic dealerships with several leading global manufacturers, offering over 120 products suited to various applications, including wheel loaders, excavators, motor graders, and more​​. International Presence: Bell Equipment has a strong international presence, with operations not just in Southern Africa but also in key global markets like North and South America, the Middle East, and parts of Europe and Asia​​. Innovation in Tracked Carriers: The company has introduced Bell Tracked Carriers, leveraging its expertise in ADTs, designed for challenging terrains and conditions, such as remote pipeline projects in the US, with applications expanding globally​​.
JSE:BELLong
by Timonrosso
Libstar soon to rocket to R5.00?These Penny type stocks are very difficult to analyse technically. There is little volume, high volatility and almost no liquidity. You can see this by jumping candlesticks between ranges (bids and offers). So we can deduct a few things but with less certainty than with Blue Chips. 1. Downtrend broken 2. Price ready to break above 200MA - Bullish trend 3. Price to break above the Rectangle formation - Bullish. If we get a strong push above the range, the next target could be well to R5.00. If it breaks down, then things will change to bearish. ABOUT THE COMPANY Libstar Holdings Limited, a prominent player in South Africa's food and consumer goods industry: Established in 2005: Libstar was founded to acquire and grow businesses in the consumer packaged goods sector, aiming to create products that enhance family unity​​. Headquartered in Plattekloof, South Africa: The company operates from its headquarters in Cape Town but has a presence across several provinces in South Africa​​. Wide Range of Products: Libstar boasts an extensive portfolio of over 9,000 products, including dairy and meat products, fresh produce, groceries, and more​​. Segments of Operation: The company operates through various segments, including Perishables, Groceries, Snacks and Confectionery, Baking and Baking Aids, and Household and Personal Care​​. B2B and B2C Focus: Libstar serves both business-to-business (B2B) and business-to-consumer (B2C) markets, offering outsourced manufacturing solutions and food service solutions alongside its consumer products​​.
JSE:LBRLong
by Timonrosso