Shoprite* Results and Market Comparison
- Discusses the recent Shoprite results, emphasising excellent performance against a high base.
- Highlights Shoprite's significant CapEx spending, customer savings, and market share gains.
- Compares market cap of Pick n Pay and Shoprite, pointing out the latter's cash reserves.
- Reflects on the historical revenue comparison between Shoprite and Pick n Pay over the past 20 years.
- Shoprite's Competitive Position and Stock Analysis
- Questions whether Shoprite is always destined to be an expensive stock.
- Analyzes the current PE ratio, forward PE, and 10-year mean, suggesting that the stock may not be as expensive as perceived.
- Shares consensus forecasts and target prices for Shoprite, indicating a potential undervaluation.
- Expresses the belief that Shoprite at ±R270 might not be as expensive as it appears, drawing parallels with the valuation of Nvidia.
- Shoprite's Success Factors and Pick n Pay's Struggles
- Explores the factors contributing to Shoprite's success, including central distribution centers and efficiency.
- Contrasts Shoprite's strategy with Pick n Pay's challenges, noting a decline in consumer satisfaction.
- Mentions Pick n Pay's recent financial struggles, including a rights issue and debt increase.
Gold and Bitcoin at All-Time Highs
- Addresses the unusual situation of both gold and Bitcoin reaching all-time highs simultaneously.
- Discusses the fears driving gold prices, such as inflation, interest rates, conflicts, and global elections.
- Highlights gold's potential target of $2,500 and the positive impact on gold mining profits.
- Shares the performance of various gold mining stocks over the past three years.
Canal+ Offer for MultiChoice
- Updates listeners on Canal+'s revised offer of R125 per share for MultiChoice, which is currently trading at R113.50.
- Discusses the time value and risk value of the deal, expressing the view that this might be the final offer.
Finance Costs and Corporate South Africa
- Examines the increase in net finance costs for Sea Harvest, attributed to higher interest rates.
- Acknowledges the challenges faced by Corporate South Africa, including Eskom issues, logistic challenges, and rising interest rates.
- Assures listeners that some of these challenges may start to fade away in the future.
* Simon holds ungeared positions.