Thursday, 14 April 2011 - 20:00
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Charts
New Listings Yesterday Ian wrote about global commodity company Glencore looking to list. As he mentioned, businessmen (and their investment bankers) are no fools when it comes to understanding the true long term value of their business versus the price that the investment community would place on their company.
Today saw the listing of the Investec Property Fund on the JSE. This is a portfolio of some 29 properties with an initial NAV of R1.7bn and includes industrial, retail, and office properties primarily situated in Gauteng. Some well known buildings outside of Gauteng include the Investec Offices in Umhlanga Rocks, just north of Durban, and Woolworths’ head office in Longmarket Street, Cape Town.
The share price in the private placement ranged from R9.50 – R10.60 a share and it listed at R10.80, now trading at R10.44. Clearly there is appetite for more property listings with Old Mutual also indicating that they are looking to list a R12bn property fund later in the year. With property being such a stellar performer over the past decade or so in South Africa it does make sense to list some of these assets now. Below is a chart of the performance of listed property vs listed equity since the beginning of 2000.
Many investors enjoy the thrill of participating in an IPO (Initial Public Offering) as it provides for a good story around the braai. What these investors often forget to do is calculate a fair value for the IPO and compare it to the price that it is coming to the market at. Ultimately any investment is buying a share in a company, so it therefore makes sense that you have an idea of how much the company is worth to ensure that you don’t over pay for the asset.
I haven’t had a look specifically at the Investec offering, but potential investors would need to ask themselves a few questions (not an exhaustive list) including:
• What’s the initial yield on my investment? – compare to yields of other property investments
• What’s the quality of their property portfolio? – compare to quality of other property investments
• What’s the outlook for property in South Africa? – compare to outlook of other assets
• Why did Investec choose to list this portfolio now?
• Is there anything I’m missing out here?
At Seed, we know that investors should be extra cautious with new listings. There will no doubt be times when new listings come on at attractive prices and have attractive growth prospects, but most of the time we prefer companies and management teams with good long track records that are, for some reason or another, currently unloved by the market.
What’s your take on the property market (both listed and direct) in South Africa? Share your views on our Facebook Fan page by clicking here and commenting under this post.
Take care,
Mike Browne
info@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966
Thu, 14 Apr 2011
Top News
South Africa's rand fell more than 1 percent against the dollar on Thursday to a 2-week low, tracking losses in the euro in what traders saw as correction aided by importer selling after a recent rally. Full story
AngloGold Ashanti, the world's third-largest gold producer, said on Thursday it was restructuring its black economic empowerment transaction to ensure it benefits its South African employees. Full story |
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Libyan rebels begged for more NATO air strikes on Thursday, saying they faced a massacre from government artillery barrages on the besieged city of Misrata, but Western allies squabbled over how to respond. Full storySyrian President Bashar al-Assad on Thursday ordered the release of all detainees arrested in a wave of protests, except those who committed crimes "against the nation and the citizens," state media said. Full storyThe U.S. House of Representatives will vote on Thursday on the budget deal struck last week by President Barack Obama and congressional leaders, the first in a series of looming political showdowns on spending and debt reduction. Full story |
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Markets | U.S. stocks slipped on
Thursday as Goldman Sachs pulled financials lower and an
unexpected rise in jobless claims added to bearish sentiment
that put. . . Full story | | Britain's top share index fell
on Thursday, led by Reckitt Benckiser after the company said its
chief executive was retiring, and with banks. . . Full story | | European shares fell on
Thursday on worries about higher global inflation as well as a
weakening U.S. jobs market, while concerns about Greek. . . Full story | | Gold rose 1 percent and
silver surged on Thursday, as a combination of dollar weakness,
crude oil gains and renewed Greek sovereign debt. . . Full story |
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| Stocks on major world
markets fell and the U.S. dollar slipped on Thursday as
Greece's debt problem, Chinese inflation and disappointing U.S.
jobs data. . . Full story | | Worries about higher
inflation and signs of job market weakness prompted investors
to sell stocks on Thursday.. . . Full story | | Australian shares fell 0.5
percent on Thursday to their lowest close in 9 days as major
miners came under pressure and Leighton Holdings. . . Full story | | Gold rose for a second day
on Thursday as the U.S. dollar fell to a 16-month low against a
basket of currencies on. . . Full story |
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SA Business | South Africa's rand fell more than 1 percent against the dollar on Thursday to a fresh 2-week low, mostly tracking sharp losses in the euro and in what traders saw as. . . Full story | | South Africa's gold output fell 2.3 percent in volume terms in February while total mineral production rose 2.8 percent compared with the same month a year earlier, data showed on Thursday.. . . Full story | | The South Africa rand weakened against the dollar during local trade on Wednesday as a recent rally unwound in what traders saw as a natural correction, also aided by offshore corporate. . . Full story |
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| South Africa's second-biggest bank FirstRand Ltd is in talks with Sterling Bank about taking a controlling stake in the Nigerian lender,. . . Full story | | South African miner Optimum Coal said on Thursday it had resolved its contract dispute with Eskom and it would continue supplying. . . Full story | | South Africa's National Union of Mineworkers (NUM) said on Thursday it had given state utility Eskom the option between signing a. . . Full story | | China Development Bank
, which just signed a local currency credit deal with
its BRICS counterparts, is ready to pump up to. . . Full story |
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| South African retailer Clicks Group Ltd posted a 22 percent rise in first-half earnings on Thursday, driven by a strong performance in its core drug chain store and said it saw strong full-year growth.. . . Full story |
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Company News | Shareholders of FirstRand are advised that, in line with its strategic intent to be the African financial services group of choice,. . . Full story | | Messrs G Moretti and J Faircliff have been appointed as independent non- executive directors to the board of the company with. . . Full story | | Optimum Coal, a leading South African coal mining and exploration group, listed on the JSE Limited, wishes to inform shareholders and. . . Full story | | Shareholders are advised that all the ordinary resolutions proposed in the notice to shareholders, dated 25 February 2011, were passed by. . . Full story |
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| Resgen released their quarterly report for the three months ended 31 March 2011. Resgen is developing its planned Boikarabelo coal mine in the Waterberg region of South Africa, which has one of the country's largest remaining coal deposits. Highlights for the. . . Full story | | Business Day reported that Nigeria's Sterling Bank has confirmed that that FirstRand is considering investing in it. FirstRand wants to grow in Africa and has targeted Nigeria as a growth market. The bank is believed to be willing to spend up. . . Full story |
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Company Results | Revenue for the interim period ended 28 February 2011 improved to R680 million (R629.1 million) and gross profit jumped to R172.5. . . Full story | | Income more than doubled to R73.6 million (R22.7 million). Net attributable profit surged to R355 million (R179.6 million). However, headline earnings. . . Full story | | Revenue declined to R1.9 billion (R2 billion). Gross profit decreased to R540.8 million (R591.3 million) and operating profit slumped to R40.2. . . Full story | | Turnover increased from R6.6 billion to R7.2 billion in 2011.Gross profit increased to R1.7 billion (2010: R1.5 billion) and operating profit. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 32418.33 | 64.54 | 0.20% | JSE Top 40 | 17:00 | 29207.48 | 66.95 | 0.23% | JSE Gold | 17:00 | 2828.89 | 31.71 | 1.13% | JSE Financial | 17:00 | 21522.41 | -85.54 | -0.40% | JSE Industrial | 17:00 | 32092.49 | 77.93 | 0.24% | JSE Indust 25 | 17:00 | 26812.36 | 79.32 | 0.30% | JSE Resource | 17:00 | 58038.56 | 246.96 | 0.43% | DJ Futures | 19:46 | 12200.00 | 6.00 | 0.05% | DJ Ind | 19:21 | 12258.54 | -12.45 | -0.10% | SP 500 | 20:00 | 1310.54 | -3.87 | -0.29% | Nasdaq | 20:00 | 2745.16 | -16.36 | -0.59% | FTSE 100 | 17:35 | 5963.80 | -46.64 | -0.78% | DAX | 17:56 | 7146.56 | -31.41 | -0.44% | CAC40 | 17:40 | 3970.39 | -35.84 | -0.89% | Nikkei | 08:26 | 9653.92 | 12.74 | 0.13% | Shanghai | 09:22 | 3043.06 | -6.87 | -0.23% | Hang-Seng | 10:26 | 24014.00 | -121.03 | -0.50% | All Ords | 08:40 | 4972.40 | -27.20 | -0.54% | NZSE 50 | 07:36 | 3454.48 | -3.15 | -0.09% |
| | Name | Time | RP | Move | % Move | Gold | 19:59 | 1471.69 | 14.86 | 1.02% | Gold/Rand | 20:00 | 10084.46 | 179.33 | 1.81% | Gold/R kg | 20:00 | 324215 | 5197 | 1.63% | Silver | 19:59 | 41.6950 | 1.0700 | 2.63% | Platinum | 19:57 | 1786.00 | 16.85 | 0.95% | Palladium | 19:53 | 771.00 | 9.87 | 1.30% | R157 | 17:06 | 7.77 | -.02 | -0.26% | R204 | 17:06 | 8.42 | -.02 | -0.24% | Brent Crude | 19:56 | 122.23 | .83 | 0.68% | Rand / Dollar | 19:58 | 6.8523 | 0.0532 | 0.78% | Rand / Pound | 19:55 | 11.1732 | 0.1394 | 1.26% | Rand / Euro | 19:55 | 9.9253 | 0.1010 | 1.03% | Rand / NZD | 19:58 | 5.4323 | 0.0715 | 1.33% | Rand / AUD | 19:55 | 7.2205 | 0.0750 | 1.05% | Yen / Dollar | 19:59 | 83.2800 | -0.6200 | -0.74% | Euro / Dollar | 19:55 | 0.6901 | -0.0021 | -0.30% | Dollar / Euro | 19:59 | 1.4484 | 0.0045 | 0.31% | Pound / Dollar | 19:55 | 0.6114 | -0.0031 | -0.50% |
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The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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14/04/2011 | 149 | 168 | 91 | 408 | 262,351,618 | R12,143,488,835 | 103431 | 2026385 | 13/04/2011 | 173 | 149 | 74 | 396 | 287,045,805 | R12,191,506,387 | 87265 | 1930759 | 12/04/2011 | 86 | 265 | 80 | 431 | 266,083,945 | R12,023,754,615 | 98390 | 2054868 | 11/04/2011 | 138 | 172 | 90 | 400 | 261,279,957 | R13,981,320,906 | 102090 | 1616361 | 08/04/2011 | 200 | 144 | 81 | 425 | 335,609,147 | R15,198,842,076 | 116888 | 1809367 |
Index Summary Index Name | RP | Move | % Move | Top 40 | 29,207.48 | 66.95 | 0.23% | Industrial | 32,092.49 | 77.93 | 0.24% | Mid Cap | 41,519.56 | 45.20 | 0.11% | Small Cap | 32,217.33 | -151.92 | -0.47% | Resource 20 | 58,038.56 | 246.96 | 0.43% | Industrial 25 | 26,812.36 | 79.32 | 0.30% | Financial 15 | 8,160.23 | -34.60 | -0.42% | Financial & Ind. 30 | 30,172.57 | 18.79 | 0.06% | All Share | 32,418.33 | 64.54 | 0.20% | Oil & Gas | 28,761.90 | -195.85 | -0.68% | Mining | 38,144.88 | 225.93 | 0.60% | Gold Mining | 2,828.89 | 31.71 | 1.13% | Platinum Mining | 73.80 | -.12 | -0.16% | Oil & Gas Producers | 15,464.74 | -105.31 | -0.68% | Basic Materials | 32,113.64 | 163.70 | 0.51% | Chemicals | 13,240.98 | -45.57 | -0.34% | Forestry & Paper | 14,079.03 | -30.66 | -0.22% | Industrial Metals | 30,561.27 | -159.37 | -0.52% | Industrials | 27,803.31 | 167.63 | 0.61% | General Industrials | 76,423.42 | 883.63 | 1.17% | Consumer Goods | 26,652.55 | 224.23 | 0.85% | Automobiles & Parts | 3,090.99 | 33.97 | 1.11% | Household Goods | 161.10 | -0 | -0.20% | Health Care | 31,633.66 | 5.47 | 0.02% | Beverages | 85,258.89 | 656.10 | 0.78% | Food Producers | 47,514.43 | 61.11 | 0.13% |
| | Index Name | RP | Move | % Move | Personal Goods | 393.31 | 5.49 | 1.42% | Consumer Services | 52,267.93 | 129.52 | 0.25% | General Retailers | 41,052.35 | 143.08 | 0.35% | Travel & Leisure | 3,658.36 | 35.65 | 0.98% | Media | 79,666.59 | -276.03 | -0.35% | Support Services | 2,455.04 | 20.79 | 0.85% | Telecommunications | 65,536.48 | -590.19 | -0.89% | Financials | 21,522.41 | -85.54 | -0.40% | Banks | 40,193.09 | -388.03 | -0.96% | Non-life Insurance | 30,204.67 | 581.98 | 1.96% | Life Insurance | 16,338.92 | 41.31 | 0.25% | General Financial | 2,254.90 | -11.64 | -0.51% | Technology | 20,588.48 | -2.78 | -0.01% | SHARIAH TOP40 | 3,314.30 | 7 | 0.21% | FTSE/JSE SHARIAH ALL | 3,365.79 | 7 | 0.21% | COAL MINING | 23,395.17 | 93 | 0.40% | FTSE JSE Fledgling | 4,529.57 | -0 | -0.01% | FTSE/JSE Alt X | 990.99 | -22 | -2.19% | SA LISTED PROPERTY | 370.34 | | -0.45% | CAPPED PROPERTY | 309.00 | | -0.23% | RESOURCE | 32,036.56 | 136 | 0.43% | DIVIDEND PLUS | 168.09 | -0 | -0.08% | FTSE/JSE RAFI 40 | 6,781.83 | 12 | 0.18% | Capped Top 40 | 15,160.62 | 27 | 0.18% | Capped All Share | 16,282.13 | 28 | 0.18% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | REI | REINET INVESTMENTS SCA | HOLD | 11 Apr | REM | REMGRO LIMITED | BUY | 11 Apr | HAR | HARMONY GOLD MINING COMPA... | BUY | 08 Apr | ADH | ADVTECH LIMITED | BUY | 07 Apr | AEG | AVENG LIMITED | BUY | 06 Apr |
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Results Expected** Expected | Company Name | Fin. Date | 18 Apr 2011 | B-W | February 2011 (Interim) | 18 Apr 2011 | B-WP | February 2011 (Interim) | 18 Apr 2011 | INGENUITY | February 2011 (Interim) | 18 Apr 2011 | TREMATON | February 2011 (Interim) | 19 Apr 2011 | AUSTRO | February 2011 (Interim) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | ZEDER | 11-04-11 | 11-04-28 | 11-05-09 | R 0.0400 | PHUMELELA | 11-04-08 | 11-04-28 | 11-05-09 | R 0.2500 | VIVIDEND | 11-04-08 | 11-04-28 | 11-05-09 | R 0.0996 | NAIL -N- | 11-04-05 | 11-04-19 | 11-05-03 | R 0.1760 | NAIL | 11-04-05 | 11-04-19 | 11-05-03 | R 0.1760 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | SHFINV-PREF | 11-03-01 | 11-04-08 | 11-04-18 | R 3.6200 | CERAMIC | 11-03-08 | 11-04-08 | 11-04-18 | R 1.4000 | AECI | 11-02-22 | 11-04-08 | 11-04-18 | R 1.3500 | WBHO | 11-02-21 | 11-04-08 | 11-04-18 | R 1.1000 | GROUP 5 | 11-02-14 | 11-04-08 | 11-04-18 | R 0.5200 |
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Upcoming AGMs** Code | Company Name | Date | Status | MRF | Merafe Resources Ltd | 14/04/2011 | Confirmed | CIL | Consolidated Infrastructure Group Ltd | 15/04/2011 | Confirmed | IDE | Ideco Group Ltd | 19/04/2011 | Confirmed | ZPT | Zaptronix Ltd | 19/04/2011 | Confirmed | ZSA | Zurich Insurance Company South Africa Lt... | 20/04/2011 | Confirmed |
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