African Media Entertainment’s capital allocation trends do not seem ideal
To avoid investing in a company that is not doing well, there are a few financial metrics that can be used to identify early signs of decline. A company that is in decline is often characterized by two trends: a declining return on capital employed (ROCE) and a declining base of capital employed. This means […]
Clientèle to merge with 1Life Insurance
JSE-listed life insurance firm Clientèle 1Life Insurance from Telesure Investment Holdings for R1.91 billion in an exchange of shares. The deal is expected to be completed by June 30, 2024. Both companies will continue to operate under their own brands, but the merger will create a larger and stronger player in the mass market. Clientèle […]
If you had invested in Invicta Holdings three years ago, you would have received a 170% return
The worst result of buying shares in a company is losing all your money. But the best result is making much more than 100% if the company does well. For example, Invicta Holdings’ share price is 146% higher than it was three years ago. Invicta Holdings moved from a loss to profitability in the last […]
Collins Property turns into profitablity, and to convert to a REIT
Collins Property Group, a South African real estate company, made a profit of R108 million in the six months to August 31, 2023, compared to a loss of R958 million in the same period a year ago. This turnaround was due to a restructuring that included the disposal of its UK assets. The company is […]
MTN Group has an interesting upward trend of high returns
MTN Group’s return on capital employed (ROCE) has been growing steadily in recent years, which is a good sign for the company’s long-term prospects. ROCE is a measure of how efficiently a company is using its capital to generate profits, so a growing ROCE suggests that MTN Group is becoming more efficient and profitable over […]
Allan Grey prefers South African stocks over bonds
Allan Gray, one of South Africa’s largest asset managers, believes that South African equities are a better investment than bonds for investors, despite the country’s challenges. Some stocks on the JSE are enticingly valued, making Allan Gray bullish on South African equities. Read the full article on Bloomberg.
Aspen contracted by Novo Nordisk to manufacture insulin for the Africa market
Africa’s largest drug maker Aspen Pharmacare is partnering with Danish healthcare firm Novo Nordisk to establish SA’s first production of human insulin. This could have a significant impact on healthcare in South Africa and the rest of Africa, as it would make human insulin more accessible and affordable. Read the full article on Reuters.
Two types of businesses that investors should avoid
Investors should carefully consider the business model of a company before investing, especially if it is not listed on a public exchange. Unlistable business models can have a number of risks, including less liquidity, less transparency, and a higher risk of fraud. Read the full article on Moneyweb.
A new shows shows how imported cement undermines the economy
A report released by cement manufacturer PPC and the Centre for African Management and Markets (CAMM) at the Gordon Institute of Business Science (GIBS) in Johannesburg on September 13 showed how substituting local cement production with imported cement has a negative impact on the South African economy. Read the full article on Engineering News.
South African fashion retailer Truworths’annual profits up by 12%
For the year ended July 2, Truworths reported headline earnings per share – a profit measure – of 8.73 rand, up from the 7.8 rand posted in the previous year, which in trading terms was one week shorter. Read the full article on Reuters.