Simon Shares
- Just One Lap is 11 years old :)
- FOMC, as expected. Local MPC tomorrow.
- Nasdaq, time to buy? Also FTSE100. Both a technical buy, not taking a view on the fundamentals.
Brent almost back at US$120.
- China opened up already, well Foxcon at least.
- Tencent results, flat-lining.
The end of an era! So says Tencent as revenue grows in single digits, the lowest quarterly number since listing back in 2004. Tencent’s declaration is resignation that any expansion will be cautious and controlled. Prosus down 8.2%, Naspers down 8.4%. Prices still look vulnerable
— David Shapiro (@davidshapiro61) March 23, 2022
- Thungela Resources (JSE code: TGA) results and 1800c dividend.
- "developments in terms of new thermal coal projects which have been hampered by financing opportunities, given ESG pressures on carbon fuels"
Simon Shares
- Big banks now all have released results, mostly good albeit off low base.
- Covid cases in China surge, new lockdowns.
- Hello, more supply chain mess.
- People asking if I updated my view on Purple Group* (JSE code: PPE). Nope, volatility likely helping the revenue, but I need new data (results) first.
- Commodities weak, brent oil now in a technical bear market.
China makes peace with tech
Prosus (JSE code: PRX) and Naspers (JSE code: NPN) now flying (+20% n Wednesday). Discount still +50%. Reports of WeChat being hit with a massive fine for money laundering?money launderingChina's state council has in one move just:
*Pledged to keep capital markets stable
*Vowed to support overseas stock listings
*Said dialogue with US re ADRs is 'good'
*Promised to handle risks for property developers
*Clarified regulation of Big Tech will end 'soon'
*BOOM pic.twitter.com/xHYgcbchCo— Sofia Horta e Costa (@SofiaHCBBG) March 16, 2022
Simon Shares
- Shoprite* (JSE code: SHP) results, it's all about innovation.
- Strong un International* (JSE code: SUI) update.
- War in Europe, commodities still the story. Very volatile, that's expected. But I expect more upside and I am happy to hold.
Upcoming events;
Prosus (JSE code PRX) / Naspers (JSE code: NPN) / Tencent (Hong Kong code: 700)
Tencent has been under pressure
Naspers and Prosus have been hit even harder
Live Prosus discount to net asset value (NAV) is now some 55% after hitting 60%.
VK (old mail.ru) has been written down to zero.
Generally unlisted is worth a lot less than stated?
Buy / Sell / Hold?
- VIE structure
- China has not taken sides in the war, so far
- Tax on profits if they sell Tencent
- More Chinese crackdowns?
- Prosus has been wasting money from the sale of 2% stake in Tencent?
- Buying back shares
- Buying Delivery Hero (Frankfurt code: DHER)
Simon Shares
- City Lodge* (JSE code: CLH) results, fair valuation around 800c?
- BHP Group* (JSE code: BHG) will see a significant reduction in its weighting in Top40 and Resi10 indices.
- PSG (JSE code: PSG) exiting the JSE.
- Wilson Bayly Holmes (JSE code: WBO) has lost investor confidence.
- Murray & Roberts* (JSE code: MUR) results. HEPS at 29c a little light, but back in profit.
War in Europe
Inflation is the biggest economic issue.Energy, PGMs and agriculture. Will central banks stick to their rate rising trend?
People want to buy the Russian ETF, why?
Even if peace happens today, sanctions will be in place for some time to come.
Buy Satrix Resi10 ETF* (JSE code: STXRES).
The Oil ETN (JSE code: SBOIL).
Local stocks impacted
- Barloworld (JSE code: BAW) about 20% of revenue.
- Mondi (JSE code: MND) about 12% of revenue.