Description

Simon Shares

• Nasdaq (650 points), S&P500 (80 points) & Euro Stoxx50 (22 points) trades all closed. FTSE100 still going currently +100 points.
• Old Mutual BEE deal, will go into details, but it only closes in late October so no rush.
• Spur (JSE code: SUR) looking very good.
  • PE ±15x and DY ±5%
  • From the Spur earnings call "And we know that only 18% of the South African adult population represents 80% of economically viable consumer segment."
    • Revenue at record with space to get margins back to pre-pandemic levels. Net income margin was ±5%, historically over 20%.

• [caption id="attachment_36416" align="aligncenter" width="849"] Spur; revenue, net income, NI margin[/caption]Afrimat (JSE code: AFT) Gravenhage manganese mine deal failing due to the Water Use License being materially different. They raised ±R650million last month.
• Purple Group* (JSE code: PPE) does a deal in Asia.
• Kap Industrials (JSE code: KAP) good results and great insights into other industries.
• Citi now says UK inflation to hit 18% early next year (last week they said 15%).
• Sasol (JSE code: SOL) pays a dividend, 1470c.

Sasol: To answer a separate Q:
The EBIT profit split is:
•Energy: 58%
•Chemicals: 42%
(Despite the high chemicals contribution, it is amazing to see how closely Sasol’s profit still conforms to the old back-of-a-matchbox calc of 5% of the Rand oil price.)

— Karin Richards (@Richards_Karin) August 23, 2022

* I hold ungeared positions.