Pick n Pay* Chart Analysis
- Resistance zone around 26, potential to touch 26.70
- Higher highs, higher lows, horizontal resistance
- Target: 30 bucks to fill the gap
- Comments on Pick n Pay's potential under Sean Summers
- No need for a rights issue, potential market spook if it happens
- Simon's position: Started building, considering more
- Current status: Down 1.7%, trading at 25.30
Pick n Pay close 13Feb24 (daily)
Transaction Capital and WeBuyCars
- Transaction Capital planning to list WeBuyCars
- Unbundling process expected in March
- Valuation: 7.5 billion rand
- Key information: Founders' put option on Transaction Capital is off the table
- WeBuyCar's strong performance in January with a record 14,000 cars sold
- Market Cap of Transaction Capital: R6.5 billion
- Opportunities and challenges in SA Taxi business
- Overall assessment: Looking not too bad
- Current stock level: 850c
- Expectation of pro rata shares for Transaction Capital holders
- Timing details expected in the circular
Gold Price Movement
- Gold weaker despite US and UK inflation data
- Current gold price and chart analysis
- Simon's position in Anglogold Ashanti*
- Observations on unexpected weakness in gold price after inflation data
Gold daily chart 14Feb24
Canal+ Offer for MultiChoice
- MultiChoice facing a 105 rand Canal+ offer
- Market sentiment: Canal+ likely to come back with a better offer
- Current stock price: 104.63
- Speculation on possible offer prices: 120, 135, or even 160
- Market confidence in Canal+ making a mandatory offer
Global Market Trends and Dollar Strength
- Dollar strength in global markets
- DXY trading at 104.87
- Money flowing into the US due to fear and concerns
- Impact on Rand: Trading at 19.07
- Market skepticism about inflation concerns
DXY (US$ index) 14Feb24 (daily chart)
Inflation Analysis
- Recent US and UK inflation data
- Market reaction to inflation numbers
- Central bank concerns about reaching inflation targets
- Jerome Powell's cautious approach and potential rate cuts
- Local inflation expectations and potential rate cuts in South Africa
- The challenge of getting back to the inflation target
* I hold ungeared positions.