Tuesday, 01 September 2015 - 20:00
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Seed Weekly - Investment Greats ? Carl Icahn
Investment Greats – Carl Icahn
Carl Icahn, the well-known US shareholder activist, grew up in a middle-class family in Queens, New York City. He is the founder and majority shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York.
After school he received a scholarship to attended Princeton University, graduating with a degree in philosophy. A few years later he took an entry level stockbroker's job in New York. Eventually he bought a seat on the New York Stock Exchange and began his finance career by mostly trading options. Icahn soon grew into a shareholder activist and began using his ownership positions in publicly held companies to force changes to increase the value of his shares.
Icahn is probably most famous for what is called the "Icahn Lift." This is the Wall Street catchphrase that describes the upward bounce in a company's stock price that typically happens when he starts buying the stock of a company he believes is poorly managed.
His strategy involves targeting poorly companies with the potential of unlocking value if ran properly. He then accumulates enough of an ownership position to lobby for a position on the company's board of directors. Usually his first demand is to dump the CEO and, oftentimes, to consider breaking up the company into separate parts and selling them off. Known to be intimidating and relentless he often succeeds. "CEOs are paid for doing a terrible job. If the system wasn't so messed up, guys like me wouldn't make this kind of money."
As a shareholder activist, Icahn is known to be a tough negotiator and clever strategist, whose persistence and personality quirks often distract his opponents. Icahn has had many great battles with multiple well known US corporations resulting, most of the time, in significant capital gains for these companies' shareholders. He is known to be ruthless with company management, using his weight to correct the abuses of greedy and/or incompetent corporate management teams.
Renowned investor Wilbur Ross, friend and frequent adversary of Icahn, referred to him as "the most competitive person I know … he's especially good at terrorizing people and wearing down their defences." He's viewed as such a sure-fire money-maker that investment managers typically start buying up the company's stock, which, whether Icahn is successful or not, leaves him with healthy stock price gains. “I make money. Nothing wrong with that. That's what I want to do. That's what I'm here to do. That's what I enjoy."
As a Forbes Top 100 man, Icahn is also a philanthropist especially supporting higher educational facilities. He has been the recipient of a number of civic awards for his work and contributions to public health, medical research and education charities in the New York area. In 2010, Icahn joined the Giving Pledge list, pledging to give away more than half his fortune.
Kind regards,
Lourens Rabé
Sources
Forbes.com, Investopedia.com, Wikipedia.com
Photo: Forbes.com
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Tue, 01 Sep 2015
Top News
Revenue from continuing operations jumped to R23.4 billion (R22.4 billion). Operating profit shot up to R1.5 billion (R778.6 million). Profit attributable to equity holders was R848.1 million (R428.4 million). Furthermore, headline earnings per share from continuing operations came in at 112 Full story
Local markets
Resource shares fell 4.66% on Tuesday, leading losses across almost all sectors with the All Share down 2.92%. Full story |
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Hundreds of angry migrants demonstrated outside Budapest's Eastern Railway Terminus on Tuesday demanding they be allowed to travel on to Germany, as the biggest ever influx of migrants into the European Union left its asylum policies in tatters. Full storyThai police arrested a second foreign suspect in the country's deadliest bombing on Tuesday and said they believed he played an important role, but could not confirm he was the man seen in a yellow T-shirt leaving a backpack at the scene of the blast. Full storyDozens of protesters occupied the environment ministry in the Lebanese capital Beirut on Tuesday calling on minister Mohamad Al Machnouk to resign over a rubbish disposal crisis, the latest in a wave of protests against the paralysed political system. Full story |
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Markets | World stocks and commodity
prices dropped on Tuesday as poor Chinese data intensified fears
about China's economic health and its effect on other. . . Full story | | Gold rose one percent on Tuesday
as the dollar and global equities dropped on fresh signs of
economic weakness in China and uncertainty. . . Full story | | Hong Kong shares fell in sympathy with
regional markets on Tuesday, as weak Chinese manufacturing data
stoked fresh worries about a hard landing. . . Full story | | Chinese stocks got September
off to a rocky ride on Tuesday, with main indexes tumbling 5
percent at one point as weak manufacturing. . . Full story |
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| Japanese stocks crumbled on
Tuesday, extending the previous day's losses after surveys
showed China's factory sector shrank for the sixth straight
month in August. . . Full story | | Australian shares tumbled to
their lowest close in a week on Tuesday after fresh data showed
China's manufacturing activity contracted in August, reinforcing
worries. . . Full story | | World stock indexes fell on
Monday as a Federal Reserve official's comments added to
investor concerns the bank may start raising interest rates. . . Full story | | Gold steadied on Monday,
bouncing up from session lows as oil prices rallied and the U.S.
dollar fell, after bullion felt earlier pressure. . . Full story |
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SA Business | South Africa's energy minister pledged transparency in the country's efforts to seek a nuclear agreement on Tuesday, seeking to reassure opposition parties who have accused the government of favouring a deal. . . Full story | | South Africa's new vehicle sales fell by 8.2 percent year-on-year to 51,055 units in August, data from the trade and industry department showed on Tuesday.. . . Full story | | South Africa's rand recovered to the dollar on Monday after the greenback sagged ahead of a slew of data due this week, but remained in the sell-off territory as heightened U.S.. . . Full story |
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| Disappointing growth in
Africa's two biggest economies has highlighted the role of
China in the expansion of recent years, now that China's. . . Full story | | Sales in South Africa's apparel retailer Mr Price Group Ltd rose 9 percent for the 21 weeks ended August 22, versus. . . Full story | | Buyout firm Actis has bought a significant minority stake in South African furniture retailer Coricraft, it said on Tuesday, marking the. . . Full story | | Australia's Myer Holdings Ltd
said on Tuesday it would raise money from shareholders
to cut debt and invest in its department stores. . . Full story |
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Company News | Shareholders are advised of the following changes to the board of Wescoal:
*Mr MornT du Plessis, Chief Financial Officer and executive director. . . Full story | | At the annual general meeting of The Foschini Group Limited held today, 1 September 2015, all the ordinary and special resolutions. . . Full story | | Shareholders are referred the cautionary announcement dated 15 May 2015 and the renewal of cautionary announcements dated 9 June 2015, 29. . . Full story | | In compliance with paragraph 3.59(a) of the JSE Listings Requirements, shareholders are advised that Mr Rasheed Hargey has been appointed as. . . Full story |
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| CSG shareholders (ôShareholdersö) are advised that Thyme 2 (Pty) Ltd. and Mr. Gary Davis (collectively the ôSellersö) have accepted an offer from the Company to acquire their respective shareholdings in Ukweza. . . Full story | | Shareholders are hereby advised that RockwellÆs annual report, containing the audited financial statements for the year ended 28 February 2015, was dispatched to shareholders on 31 August 2015, and contains no. . . Full story | | Business Day reported that SA Corporate Real Estate Fund's recent move into the affordable rental housing market in inner-city Johannesburg is already paying off, with a significant earnings boost for the. . . Full story |
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Company Results | Revenue for the year increased by 12.7% to R182.2 billion (2014: R161.6 billion), operating profit jumped 18.5% to R9.3 billion (2014:. . . Full story | | Revenue for the year grew 14.8% to R29.5 billion (R25.7 billion). Operating profit lowered to R602.1 million (R978.5 million). Profit attributable. . . Full story | | Revenue for the interim period rose to R781.9 million (R658.58 million). Operating income increased to R382.1 million (R350.8 million). Net profit. . . Full story | | Revenue for the year ended 30 June 2015 increased to R7.7 billion (2014: R6.8 billion). Gross profit increased by 15% to. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 48515.13 | -1457.20 | -2.92% | JSE Top 40 | 17:00 | 42979.77 | -1370.34 | -3.09% | JSE Gold | 17:00 | 961.98 | -22.04 | -2.24% | JSE Financial | 17:00 | 42500.12 | -1303.22 | -2.98% | JSE Industrial | 17:00 | 70218.28 | -1837.45 | -2.55% | JSE Indust 25 | 17:00 | 62445.35 | -1745.90 | -2.72% | JSE Resource | 17:00 | 34164.55 | -1668.79 | -4.66% | DJ Futures | 19:48 | 16085.00 | -423.00 | -2.56% | DJ Ind | 19:58 | 16138.29 | -389.74 | -2.36% | SP 500 | 19:58 | 1926.00 | -46.18 | -2.34% | Nasdaq | 19:58 | 4677.88 | -98.63 | -2.06% | FTSE 100 | 16:15 | 6048.59 | -199.35 | -3.19% | DAX | 18:08 | 10015.57 | -243.89 | -2.38% | CAC40 | 18:08 | 4541.16 | -111.79 | -2.40% | Nikkei | 08:28 | 18165.69 | -724.79 | -3.84% | Shanghai | 09:28 | 3166.62 | -39.37 | -1.23% | Hang-Seng | 10:28 | 21185.43 | -485.15 | -2.24% | All Ords | 08:38 | 5117.10 | -105.00 | -2.01% | NZSE 50 | 08:08 | 5654.99 | -1.25 | -0.02% |
| | Name | Time | RP | Move | % Move | Gold $ | 19:59 | 1140.85 | 6.16 | 0.54% | Gold R | 19:58 | 15299.88 | 258.86 | 1.72% | Gold R/kg | 19:58 | 491705 | 8264 | 1.71% | Silver $ | 19:59 | 14.6430 | .0080 | 0.05% | Platinum $ | 19:59 | 1008.41 | 3.91 | 0.39% | Palladium $ | 19:59 | 578.10 | -19.90 | -3.33% | R186 | 16:22 | 8.43 | .07 | 0.90% | R204 | 16:22 | 7.68 | .08 | 1.05% | R207 | 16:22 | 7.93 | .09 | 1.15% | Brent Crude | 19:42 | 50.19 | .14 | 0.28% | USD / ZAR | 19:59 | 13.4133 | 0.1588 | 1.20% | GBP / ZAR | 19:55 | 20.5050 | 0.1849 | 0.91% | EUR/ ZAR | 19:55 | 15.1582 | 0.2915 | 1.96% | NZD/ ZAR | 19:58 | 8.5131 | 0.1011 | 1.20% | AUD / ZAR | 19:55 | 9.4521 | 0.0165 | 0.17% | USD / JPY | 19:59 | 119.8020 | -1.4160 | -1.17% | EUR / USD | 19:59 | 1.1300 | 0.0092 | 0.82% | GBP / USD | 19:59 | 1.5310 | -0.0036 | -0.23% |
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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01/09/2015 | 90 | 266 | 48 | 404 | 251,123,893 | R19,765,870,787 | 339249 | 1778439 | 31/08/2015 | 179 | 162 | 63 | 404 | 229,537,421 | R18,757,669,384 | 201356 | 956857 | 28/08/2015 | 294 | 88 | 49 | 431 | 246,339,343 | R16,964,007,627 | 231749 | 1509231 | 27/08/2015 | 207 | 138 | 51 | 396 | 281,861,802 | R21,759,694,074 | 284159 | 1792978 | 26/08/2015 | 120 | 220 | 67 | 407 | 322,608,561 | R21,970,568,409 | 308743 | 2082083 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 42,979.77 | -1370.34 | -3.09% | Industrial | 70,218.28 | -1837.45 | -2.55% | Mid Cap | 66,398.27 | -1601.40 | -2.36% | Small Cap | 57,412.61 | -400.19 | -0.69% | Resource 20 | 34,164.55 | -1668.79 | -4.66% | Industrial 25 | 62,445.35 | -1745.90 | -2.72% | Financial 15 | 15,827.60 | -521.38 | -3.19% | Financial & Ind. 30 | 66,997.57 | -1911.11 | -2.77% | All Share | 48,515.13 | -1457.20 | -2.92% | Oil & Gas | 8,211.55 | -253.96 | -3.00% | Mining | 20,353.02 | -983.97 | -4.61% | Gold Mining | 961.98 | -22.04 | -2.24% | Platinum Mining | 22.66 | -.79 | -3.37% | GENERAL MINING | 6,030.53 | -323.65 | -5.09% | Oil & Gas Producers | 44,151.98 | -1365.52 | -3.00% | Basic Materials | 20,371.80 | -816.76 | -3.85% | Chemicals | 21,492.22 | -184.94 | -0.85% | Forestry & Paper | 46,516.38 | -2334.27 | -4.78% | Industrial Metals | 5,388.42 | -32.18 | -0.59% | Industrials | 43,226.40 | -855.64 | -1.94% | General Industrials | 154.07 | -3.71 | -2.35% | Consumer Goods | 63,752.14 | -966.02 | -1.49% | Automobiles & Parts | 7,420.63 | -6.79 | -0.09% | Household Goods | 530.49 | -15 | -2.72% | Health Care | 9,422.90 | -329.64 | -3.38% | Beverages | 207.83 | -2.76 | -1.31% |
| | Index Name | RP | Move | % Move | Food Producers | 8,544.89 | -153.28 | -1.76% | Personal Goods | 975.29 | -12.09 | -1.22% | Consumer Services | 14,995.32 | -746.66 | -4.74% | General Retailers | 7,779.16 | -506.70 | -6.12% | Travel & Leisure | 5,931.74 | -70.87 | -1.18% | Media | 355.77 | -19.40 | -5.17% | Support Services | 3,230.78 | -66.97 | -2.03% | Telecommunications | 8,872.39 | -126.23 | -1.40% | Financials | 42,500.12 | -1303.22 | -2.98% | Banks | 7,254.10 | -257.38 | -3.43% | Non-life Insurance | 54,745.14 | 382.84 | 0.70% | Life Insurance | 38,441.71 | -1321.23 | -3.32% | General Financial | 4,437.25 | -168.08 | -3.65% | Technology | 65,634.42 | -1391.95 | -2.08% | SHARIAH TOP40 | 3,184.94 | -120 | -3.62% | FTSE/JSE SHARIAH ALL | 3,415.24 | -116 | -3.28% | COAL MINING | 8,435.84 | -138 | -1.61% | FTSE JSE Fledgling | 6,576.61 | -61 | -0.92% | FTSE/JSE Alt X | 1,444.49 | -5 | -0.31% | SA LISTED PROPERTY | 633.04 | | -2.02% | CAPPED PROPERTY | 560.49 | | -2.02% | RESOURCE | 18,482.79 | -893 | -4.61% | DIVIDEND PLUS | 200.45 | -5 | -2.51% | FTSE/JSE RAFI 40 | 8,775.72 | -263 | -2.91% | Capped Top 40 | 22,953.26 | -727 | -3.07% | Capped All Share | 24,607.76 | -739 | -2.92% | JSE TABACO | 8,834.49 | -129 | -1.44% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | FSR | FIRSTRAND LIMITED | HOLD | 31/08/2015 | LBH | LIBERTY HOLDINGS LTD ORD | HOLD | 31/08/2015 | OML | OLD MUTUAL PLC | BUY | 31/08/2015 | SNT | SANTAM LTD | HOLD | 31/08/2015 | MSM | MASSMART HOLDINGS LTD | HOLD | 31/08/2015 |
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Results Expected** Expected | Company Name | Fin. Date | 02/09/2015 | DRDLD | June 2015 (Final) | 02/09/2015 | DRDLDCP | June 2015 (Final) | 02/09/2015 | ZPLP | June 2015 (Final) | 03/09/2015 | HOWDEN | June 2015 (Interim) | 03/09/2015 | IMPL CONV | June 2015 (Final) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | PSGFIN PREF | 31/08/15 | 17/09/15 | 28/09/15 | ZAR 3.9079 | PSGFIN PREF | 31/08/15 | 17/09/15 | 28/09/15 | ZAR 3.9079 | WBHO | 31/08/15 | 09/10/15 | 19/10/15 | ZAR 2.5800 | BIDVEST | 31/08/15 | 17/09/15 | 28/09/15 | ZAR 4.8300 | SA CORP | 31/08/15 | 17/09/15 | 28/09/15 | ZAR 0.1966 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | STANBANK-P | 14/08/15 | 28/08/15 | 07/09/15 | ZAR 3.5320 | LIB-HOLD | 07/08/15 | 28/08/15 | 07/09/15 | ZAR 2.5400 | RESILIENT | 05/08/15 | 28/08/15 | 07/09/15 | ZAR 2.0505 | AECI | 27/07/15 | 28/08/15 | 07/09/15 | ZAR 1.2500 | ADCORP | 26/05/15 | 28/08/15 | 07/09/15 | ZAR 0.8800 |
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Upcoming AGMs** Code | Company Name | Date | Status | MRPP | Mr Price Group Ltd. | 01/09/2015 | Confirmed | MPCB | Mr Price Group Ltd. | 01/09/2015 | Confirmed | TFGP | The Foschini Group Ltd. | 01/09/2015 | Confirmed | TFG | The Foschini Group Ltd. | 01/09/2015 | Confirmed | MPC | Mr Price Group Ltd. | 01/09/2015 | Confirmed |
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