Telkom has proved to be a remarkable turnaround story over the past two years. Management has been successful in streamlining the portfolio, selling off non-core assets, and shifting focus to a core portfolio comprised of Telkom Consumer, Openserve and BCX.
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Pepkor recently reported a reasonable set of interim results, with a 12% increase in earnings. The key aspect of the result that garnered interest from the market is the Fintech business within the Group.
In 2003, new legislation came into effect in South Africa allowing non-pharmacists and corporates to own pharmacies—something previously reserved for qualified pharmacists only. This opened the door to the mass corporatisation of the pharmacy industry.
Mr Price is top of mind for South Africans when it comes to retail, with the company’s ubiquitous stores known for affordable apparel, homeware, and sporting goods. While consumers might look to the retailer for a stylish skirt, decent bed sheets, or relatively affordable soccer boots, investors see Mr Price as a solid thanks to its debt-free balance sheet, defensive margins, and high returns on equity (ROEs).
The stock market is often seen as a barometer of economic conditions. Much like people glance at
the weather to decide how to dress, many look at market movements to gauge the state of the economy.
We have recently initiated a position in African Rainbow Minerals (ARM), as it is
currently trading at a significant discount to our estimate of fair value.
A major theme of the first quarter has been a significant spike in volatility in global markets, particularly the US. This has naturally fed into the entire financial eco
system, driven by Trump assuming office and implementing a barrage of executive orders from the get-go. The US, as a result, is undergoing massive
changes which will lead to structural change in the
US economy.
The platinum group metals sector got off to a very strong start in Q1, following a weak 2024. Given that PGM stocks were beaten up heading into 2025, it did not take much positive news to get PGM stock prices going. In this case, the Rhodium
price spiked unexpectedly.
We recently initiated a position in Pan African, which is a smaller and more geographically concentrated gold miner relative to its larger peers, Harmony, Goldfields and AngloGold. We also believe there are interesting elements of the
investment case where management will be able to extract value from the operations even if the gold price pulls back moderately.
Conventional wisdom suggests that investing in hospital groups should provide investors with a sense of security, as the sector is considered
defensive and non-cyclical.