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 The Sharenet Daily 
Tuesday, 31 July 2012 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Anglo American

Two weeks back we highlighted BHP Billiton. Last week Anglo American posted their interim results to the end of June and the share price which had been dropping, fell even further on the news.

The financial results of these large diversified miners is a type of barometer of what is happening in the global economy, especially the strength of that still largely unknown quantity, China. This is because Anglo is involved across a number of base metals including iron ore, metallurgical (used for steel making) and thermal coal (used for power generation), copper, nickel, and platinum. It is also involved in diamonds via their stake in De Beers.

The results were worse than analysts had expected and while a company will always try and put a positive spin on its numbers, over time growth in earnings and return on equity are the main factors in driving up the value of the company and hence its price. In the case of Anglo, they highlighted volume growth especially the record production of iron ore, via their majority stake in Kumba Iron Ore but noted that output from its Brazilian iron ore project would be delayed by at least a year. Because prices of commodities have been declining and a company such as Anglo American is essentially a price taker, its operating profit fell a massive 38% to $3,7 billion from a previous $6 billion.
The table below gives a clear indication of the various areas that Anglo is involved in and the decline in operating earnings from the previous 6 months to June 2011 across all product lines, except other.

Table 1: Analysis of Operating Profit

Source: Anglo American

Price relative

There are numerous ways that analysts assess the value of a company. Essentially the price today will be the discounted sum of all expected future earnings, but because investment professionals also need to make relative decisions, one way is to assess the PE relatives. While there is merit in certain companies trading at higher PE’s than others, over time certain relationships can be identified.
For example since 1982 Anglo American’s PE has traded at 90% of the JSE PE. It traded as low as 53% in 2009 and after recovering fell back to 57% but with the poor results, the PE trades at 77% of the market.

Chart 1: PE relative of Anglo American to the FTSE/JSE

Source: I-Net

When comparing the PE ratio to the well-loved SAB Miller, which has been getting more and more expensive, then a larger discrepancy is apparent. The relative PE’s between these two shares reached a low of just 27% - now at 40%.

Chart 2: PE relative of Anglo American to SABMiller

Source: I-Net

The share price hit a high of over R550 four years ago. It fell to a low of R139 in March 2009 at the peak of the financial crisis and while it has recovered to its current R246 it’s been a sideways and rather disappointing investment.

The price certainly looks cheap, and assuming earnings come in at R30 for the full year, the price to earnings ratio comes in just over 8 times. In terms of market capitalisation of shares listed on the JSE, Anglo has slipped to the 4th largest with a market cap of R346 billion after BAT, SAB Miller and Billiton which has a market cap of R520 billion.

It definitely does appear that some of the smarter money is starting to accumulate this share at these lower prices. This is happening while cyclical shares such as Anglo American have disappointed on their earnings and also when global investors favour the more consumer non cyclicals such as SAB Miller. Time will tell which will make the best investment from these levels.

Kind regards

Ian de Lange

021 914 4966

Tue, 31 Jul 2012
Top News
South Africa's All-Share index opened on Tuesday at a record high as platinum miner Wesizwe and other commodity and industrial stocks rose on hopes of further moves by Europe to manage its debt woes.  Full story

South Africa's rand was steady and range-bound against the dollar in early Tuesday trade with investors unwilling to take big positions ahead of the release of trade and employment numbers at home and a U.S. monetary policy meeting abroad.  Full story
Syrian combat aircraft and artillery pounded two areas of Aleppo on Tuesday as the army battled for control of the country's biggest city, but rebel fighters said troops loyal to President Bashar al-Assad had been forced to retreat.  Full story
Near-bankrupt Greece is fast running out of cash while it waits for its next installment of aid from international lenders, a deputy finance minister said on Tuesday, sounding the alarm on the country's precarious financial position.  Full story
Republican Mitt Romney's campaign tried to keep the domestic political focus on the U.S. economy and jobs on Monday, although the effort was overshadowed by more controversy from a foreign trip after he made remarks that upset Palestinians.  Full story
U.S. stocks edged lower on Tueday as investors awaited the outcome of the Federal Reserve Board's two-day meeting when it is widely expected. . .  Full story
European shares suffered their biggest intraday fall in more than a week on Tuesday, hit by weak bank results and fresh doubts over. . .  Full story
U.S. stocks were mixed on Tuesday while European shares snapped a three-day winning streak and oil slipped on fear central banks may not. . .  Full story
Britain's FTSE fell on Tuesday extending earlier losses, weighed by worries the European Central Bank may not deliver enough stimulus this week to. . .  Full story

Gold steadied on Tuesday in line with the euro as investors took to the sidelines ahead of this week's European Central Bank meeting,. . .  Full story
U.S. stocks opened flat on Tuesday ahead of the start to a two-day policy meeting by the U.S. Federal Reserve at which the. . .  Full story
A three-day rally in European shares halted on Tuesday, dented by concerns that markets have overplayed the chances of the European Central Bank. . .  Full story
Japan's Nikkei share average logged its worst July performance in five years on concerns about a deepening euro zone crisis and slowing global. . .  Full story

South Africa's government bonds weakened slightly in late Tuesday trade and yields edged up after the Treasury said it would increase. . .  Full story
Zimbabwe has increased minimum capital requirements for banks to as much as $100 million, a move which could hold back a. . .  Full story
South Africa's three top gold producers are expected to report lower quarterly earnings despite increased output after a one-off boost in. . .  Full story
South Africa imported no crude oil from Iran in June, customs data showed on Tuesday, a sign Pretoria may be cutting. . .  Full story

South Africa's trade deficit narrowed to 5.7 billion rand in June from an 8.9 billion rand shortfall in May, the South African Revenue Service said on Tuesday.. . .  Full story
South Africa's unemployment rate slowed slightly in the second quarter but remained high, official data showed on Tuesday, with key sectors like manufacturing still shedding jobs as the global economic downturn. . .  Full story
Petra Diamonds Ltd said full-year production nearly doubled mainly due to the contribution from its Finsch mine, and that it would sell its fissure mine operations in South Africa to focus. . .  Full story
Company News
Anglo notes the announcement made by the Government of the Republic of Botswana ("GRB") in relation to its decision not to. . .  Full story
Shareholders are advised that, with the exception of ordinary resolution number four which was withdrawn, shareholders approved all of the ordinary. . .  Full story
Shareholders are advised that Cadiz' integrated annual report, containing the group's condensed annual financial statements for the year ended 31 March. . .  Full story
Shareholders are advised that at the annual general meeting of MICROmega held at 10:00 on Tuesday, 31 July 2012 (in terms. . .  Full story

Sasfin shareholders were advised that Sasfin Bank Ltd. (''Sasfin Bank''), a wholly owned subsidiary of Sasfin has secured a term loan. . .  Full story
Shareholders of Italtile Ltd. ("Italtile") and Ceramic were advised to continue to exercise caution when dealing in their respective Italtile and. . .  Full story
Italtile Ltd. ("Italtile") and Ceramic shareholders were referred to the cautionary announcements published on SENS on Monday, 28 May 2012 and. . .  Full story
Shareholders are advised that AFGRI Operations, a wholly owned subsidiary of the company, and Senwes have entered into binding sale of. . .  Full story
Company Results
Revenue for the interim period lowered to R3.2 billion (2011: R3.4 billion). Gross profit shot up to R324.5 million (2011: R239.8. . .  Full story
Gold One announced the company's June 2012 quarter results, whose highlights were: *Cashflow from operations increased by 58% *Group operating cashflow. . .  Full story
Outlook Capco has continued to drive performance across its estates during 2012, and this has been reflected in the financial results. The balance. . .  Full story
Rental revenue for the interim period ended 30 June 2012 jumped to R1.1 billion (2011: R758.6 million), while profit for the. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0034596.00-361.00-1.03%
JSE Top 4017:0030386.00-388.00-1.26%
JSE Gold17:002410.00-16.00-0.67%
JSE Financial17:0026548.00-406.00-1.51%
JSE Industrial17:0040341.00-432.00-1.06%
JSE Indust 2517:0034296.00-463.00-1.33%
JSE Resource17:0046291.00-308.00-0.66%
DJ Futures19:4812980.00-53.00-0.41%
DJ Ind20:0013039.18-36.48-0.28%
SP 50020:001381.78-4.19-0.30%
FTSE 10017:355635.28-58.35-1.02%
All Ords08:434289.4022.500.53%
NZSE 5007:483545.0126.120.74%
NameTimeRPMove% Move
Gold $19:591613.63-8.17-0.50%
Gold R19:5813322.1949.370.37%
Gold R/kg20:0042830934740.82%
Silver $19:5927.9730-.1570-0.56%
Platinum $19:591413.002.500.18%
Palladium $19:59588.101.700.29%
Brent Crude20:00106.07-1.31-1.22%
Rand / Dollar19:598.25300.06990.85%
Rand / Pound19:5512.90570.07250.56%
Rand / Euro19:5510.15750.11941.19%
Rand / NZD19:586.69360.08051.22%
Rand / AUD19:558.68300.08951.04%
Yen / Dollar19:5978.1620-0.00100.00%
Euro / Dollar19:550.8121-0.0036-0.44%
Dollar / Euro19:591.23050.00500.41%
Pound / Dollar19:550.63750.00100.16%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 IQUAD  3606020.00.%666
2 TRUSTCO  1201211.11.%20000
3 ADAPTIT  120109.09.%42323
4 SYNERGY-A  1030555.64.%37551
5 AMA  295155.36.%112847
6 KAP  315155.00.%22200
7 AVENG  36001594.62.%831147
8 REUNERT  80053003.89.%1012001
9 BLUETEL  558203.72.%126626
10 ESORFRANK  11543.60.%489650
11 KGMEDIA  2000653.36.%80024
12 KEATON   26883.08.%21772
13 TELKOM  1796533.04.%2740499
14 PPC  2588732.90.%1820097
15 JUBILEE  11332.73.%57500
16 SYNERGY-B  620152.48.%10000
17 ALTRON  2400582.48.%129103
18 HOLDSPORT  49751172.41.%53370
19 NUWORLD  1995452.31.%1000
20 GBGOLD  450102.27.%7600

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Major Moves Down
SharenameSaleMove% MoveVolume
1 KELLY  200-25-11.11.%10002
2 ATLATSA  135-15-10.00.%14759
3 ILIAD  520-30-5.45.%3008
4 VUNANI  161-9-5.29.%20000
5 MAS  1061-59-5.27.%2310
6 AECI  7805-375-4.58.%119937
7 GRANPRADE  250-12-4.58.%4979
8 AFGRI  536-24-4.29.%511308
9 KUMBAIO  51510-2290-4.26.%488849
10 TRNSHEX  311-13-4.01.%24632
11 NORTHAM  2566-90-3.39.%1155958
12 BAUBA  145-5-3.33.%25000
13 RMBH  3667-117-3.09.%1751986
14 EASTPLATS  165-5-2.94.%61507
15 NASPERSN  44990-1330-2.87.%1157747
16 OCTODEC  1750-50-2.78.%2517
17 RICHEMONT  4659-121-2.53.%7151248
18 ABSA  13490-350-2.53.%1732618
19 TRUWTHS  10330-266-2.51.%1986739
20 FIRSTRAND  2764-71-2.50.%11608315

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New Highs
SharenameSaleHighMove% MoveVolume
1 SYNERGY-A  10301030555.64.%37551
2 REUNERT  800581303003.89.%1012001
3 SYNERGY-B  620620152.48.%10000
4 HOLDSPORT  497549831172.41.%53370
5 LIFEHC  33553355551.67.%4535185
6 IMPERIAL  18920189202311.24.%734165
7 LIB-HOLD  93659439900.97.%656335
8 ASPEN  14515145651250.87.%1134152
9 LITHA  40841530.74.%163040
10 A-V-I  59116338360.61.%2420666
11 BATS  4387744331820.19.%669599
12 WOOLIES  53805460-25-0.46.%5201786
13 MRPRICE  1232412496-61-0.49.%663149
14 TFG  1425014578-118-0.82.%809694
15 FIRSTRAND  27642849-71-2.50.%11608315
16 RMBH  36673798-117-3.09.%1751986

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New Lows
SharenameSaleLowMove% MoveVolume
1 ATLATSA  135135-15-10.00.%14759
2 ARM   1557615402-364-2.28.%327160
3 PNR-FOODS  53505250-91-1.67.%137322
4 REDEFINTL  450448-5-1.10.%98447

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Index Summary
Index NameRPMove% Move
Top 4030,386.00-388.00-1.26%
Mid Cap50,905.0028.000.06%
Small Cap36,946.0026.000.07%
Resource 2046,291.00-308.00-0.66%
Industrial 2534,296.00-463.00-1.33%
Financial 159,903.00-193.00-1.92%
Financial & Ind. 3037,753.00-599.00-1.56%
All Share34,596.00-361.00-1.03%
Oil & Gas 26,072.00-242.00-0.92%
Mining 29,842.00-182.00-0.61%
Gold Mining2,410.00-16.00-0.67%
Platinum Mining47.00.00-0.15%
GENERAL MINING7,616.00-31.00-0.41%
Oil & Gas Producers 14,018.00-130.00-0.92%
Basic Materials 25,567.00-196.00-0.76%
Chemicals 14,709.00-447.00-2.96%
Forestry & Paper 13,599.00-29.00-0.21%
Industrial Metals 27,475.00-1016.00-3.57%
Industrials 34,667.00327.000.95%
General Industrials
Consumer Goods 34,645.00-444.00-1.27%
Automobiles & Parts 5,661.00-82.00-1.44%
Household Goods161.00-2-1.41%
Health Care 48,577.00330.000.68%
Beverages 121.00.00-0.48%
Index NameRPMove% Move
Food Producers 63,502.00-367.00-0.57%
Personal Goods 465.00-11.00-2.45%
Consumer Services 71,618.00-1138.00-1.57%
General Retailers 62,485.00-577.00-0.92%
Travel & Leisure 3,930.0032.000.84%
Media 98.00-2.00-2.07%
Support Services 2,
Telecommunications 71,292.00-1289.00-1.78%
Financials 26,548.00-406.00-1.51%
Banks 49,205.00-1206.00-2.39%
Non-life Insurance 41,856.00128.000.31%
Life Insurance 20,990.00-263.00-1.24%
General Financial 2,469.00-19.00-0.80%
Technology 29,854.00-123.00-0.41%
SHARIAH TOP40 2,953.00-30-1.01%
FTSE/JSE SHARIAH ALL3,090.00-26-0.84%
COAL MINING21,901.00-417-1.87%
FTSE JSE Fledgling 5,536.00120.22%
FTSE/JSE Alt X 1,072.0010.10%
CAPPED PROPERTY 383.00-0.19%
RESOURCE 25,588.00-168-0.65%
DIVIDEND PLUS194.0000.23%
FTSE/JSE RAFI 407,067.00-74-1.04%
Capped Top 4016,045.00-208-1.28%
Capped All Share17,502.00-182-1.03%
JSE TABACO 5,606.00100.19%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
01 Aug 2012EXXAROJune 2012 (Interim)
01 Aug 2012NEDBANKJune 2012 (Interim)
02 Aug 2012CAPITALJune 2012 (Interim)
02 Aug 2012LIB-HOLDJune 2012 (Interim)
02 Aug 2012LIBHOLD-PJune 2012 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ANGLO12-07-2712-08-1012-09-13R 0.3200
ABSA12-07-2712-08-3112-09-10R 3.1500
ABSABANK-P12-07-2712-08-3112-09-10R 31.3470
CAPSHOP12-07-2612-10-1212-11-20R 0.0500
NAIL -N-12-07-2612-08-1012-08-20R 0.0912
Ex Div**
Share NameDec-DateLDTPay-DateAmount
SBR00312-07-1312-07-2712-08-06R 1.4800
VILLAGE12-06-2112-07-2712-08-06R 0.3000
FOORDCMPS12-07-1012-07-2712-08-06R 0.3000

Upcoming AGMs**
CodeCompany NameDateStatus
ERBPErbacon Investment Holdings Ltd.31/07/2012Confirmed
ERBErbacon Investment Holdings Ltd.31/07/2012Confirmed
MMGMICROmega Holdings Ltd.31/07/2012Confirmed
LHGLitha Healthcare Group Ltd.31/07/2012Confirmed
MMLMetmar Ltd.01/08/2012Confirmed

Stock Exchange News Service
31/07/201217:43IMITED - Revised Trading Update
31/07/201217:35Litha Healthcare Group Limited - Report On Proceedings At Annual General Meeting
31/07/201217:32EXCELLERATE HOLDINGS LIMITED - Results of General Meeting - PRO RATA Offer and D...
31/07/201217:30Huge Group Limited - Appointment Of Company Secretary
31/07/201216:59CAPITAL PROPERTY FUND - Condensed unaudited consolidated interim financial state...
31/07/201216:54Hulamin Limited - Specific Repurchase Of Unlisted B Ordinary Shares In The Share...
31/07/201216:53CONSOLIDATED INFRASTRUCTURE GRP LTD - TRP121 Notification of an Acquisition and ...
31/07/201216:46ANGLO AMERICAN PLC - Anglo American to increase De Beers shareholding to 85% and...
31/07/201216:30Development Bank Of South Africa - Dbsa Board Announces New Ceo
31/07/201216:09REAL PEOPLE INV HOLD (PTY) LTD - Interest Rate Reset
31/07/201216:00Erbacon Investment Holdings Limited - Results Of The Annual General Meeting (agm...
31/07/201215:40CITY LODGE HOTELS LIMITED - Trading Statement
31/07/201215:31Cadiz Holdings Limited - Change Statement And Annual General Meeting
31/07/201215:25JSE LIMITED - Redemption and Refinance of Notes
31/07/201215:19SYNERGY INCOME FUND LIMITED - Results of Vendor Consideration Placing
31/07/201215:01ONTHECARDS INVESTMENTS LTD - Interest Rate Reset
31/07/201214:00Republic Of South Africa - Noncompetitive Auction Option Increase To 50 Percent
31/07/201214:00BAYPORT SECURITISATION (PTY) LTD - Supplement to the Programme Memorandum
31/07/201213:55DENEL SOC LIMITED - Full Capital Redemption
31/07/201213:31Rgt Smart Market Intelligence Ltd - Dealing By An Employee Of The Designated Adv...
31/07/201213:30Sabmiller Plc - Total Voting Rights And Capital
31/07/201213:28MICROMEGA HOLDINGS LIMITED - Results of the Annual General Meeting
31/07/201213:20CAPITAL PROPERTY FUND - New Instrument Listing
31/07/201213:15FORTRESS INCOME FUND LIMITED - Trading Statement
31/07/201212:55SASFIN HOLDINGS LIMITED - Market Update on Securing of Long Term Funding
31/07/201211:29INDWA INVESTMENTS LIMITED - New Instrument Listing
31/07/201211:00INVESTEC LIMITED - Voting capital
31/07/201211:00Italtile Limited - Renewal Of Cautionary Announcements
31/07/201210:45Afgri Limited - The Merging Of The Agricultural Retail And Partrite Businesses O...
31/07/201210:30Cipla Medpro South Africa Limited - Trading Statement And Clarification Of 30 Ju...
31/07/201210:18Workforce Holdings Limited - Change Of Designated Adviser
31/07/201209:17A RESOURCES NL - Mining exploration entity quarterly report
31/07/201209:15A RESOURCES NL - Quarterly Activities Report
31/07/201209:00CONVERGENET HOLDINGS LIMITED - Cautionary announcement
31/07/201209:00JSE LIMITED - Amend to Listings Requirements
31/07/201208:30MERAFE RESOURCES LIMITED - Production report for the six months ended 30 June 20...
31/07/201208:23RESOURCE GENERATION LIMITED - Boikarabelos substantial value expected to be conf...
31/07/201208:22URANIUM ONE INC - News release: Uranium One to Host Q2 2012 Results Conference C...
31/07/201208:21British American Tobacco Plc - Transaction In Own Shares
31/07/201208:20RESOURCE GENERATION LIMITED - Quarterly Report for the three months ended 30 Jun...
31/07/201208:01CAPITAL & COUNTIES PROPERTIES PLC - CapCo Interim Results Announcement 30 June 2...
31/07/201208:00SACOIL HOLDINGS LIMITED - Appointment of Vice President Finance and Change to th...
31/07/201208:00CAPITAL & COUNTIES PROPERTIES PLC - CapCo Interim Results 30 June 2012
31/07/201208:00Brait Se - Issue Of R1.5 Billion Of Preference Shares
31/07/201207:35Firestone Energy Limited - June 2012 Quarterly Results
31/07/201207:05NEW GOLD ISSUER LIMITED - Listing of additional NewGold debentures
31/07/201207:05Wescoal Holdings Limited - Announcement Of Agreements Entered Into By Subsidiari...

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