Financial Mail articles from April 2012

Financial Mail archives from April 2012

MOBICOVER. SA start-up goes global.
April 27, 2012... Byline: Stafford Thomas MOBICOVER SA start-up goes global Marketing and consumer spending through mobile channels is booming and will reach US$150bn worldwide in 2012, predicts US research firm Strategy Analytics. To tap into this market,...

PICK N PAY. Green shoots appearing.
April 27, 2012... Byline: Stafford Thomas PICK N PAY Green shoots appearing After two tough years, Pick n Pay is clawing its way back to good health WHAT IT MEANS: Tougher competition Pricing the battlefield We want to be in a position to achieve margins of 7%...

DID YOU HEAR?
April 27, 2012... Ever wondered how Jacob Zuma manages to sell the concept of polygamy to his wives? Here is his modus operandi: Don't close the door that you've found open. Those who came before you didn't close the door on you, and no-one closed the door on...

YOU COULD WIN - DID YOU HEAR?
April 27, 2012... YOU COULD WIN by sending news snippets, wit and gossip to Did You Hear? Published entries win R200. Please include your name, address and telephone number or you will not be eligible. Send entries to:fmdidu@fm.co.za * BDFM employees are not...

Call to account.
April 27, 2012... Byline: NAZMEERA MOOLA Call to account I hate call centres. I hate the menu options you have to struggle through to get to a live human being where there may be some vague potential of actual service. I hate the complete lack of any leeway a...

The changes at SABMiller.
April 27, 2012... The changes at SABMiller Corporate successions do not always run smoothly and according to plan. In 1983, Meyer Kahn, who ran the retail group OK Bazaars (now part of Shoprite), was appointed group MD of the then SA Breweries (SAB) at short...

Cutting red tape is the better option.
April 27, 2012... Cutting red tape is the better option Earlier this week economic development minister Ebrahim Patel launched the Small Enterprise Funding Agency (Sefa). It is the latest attempt by government to try to provide small businesses, especially...

A dream betrayed.
April 27, 2012... Byline: BARNEY MTHOMBOTHI A dream betrayed April 27 is a day that will forever be seared into our consciousness. It was a beautiful day. A day we savour with every remembrance. The beauty, unfortunately, has not endured. Who can forget those...

EXECUTIVE MOVES.
April 27, 2012... Craig Robertson will step down as CEO of ARB Electrical with effect from December 31 and as a director of ARB Holdings with effect from July. He will be succeeded by Blayne Burke, the current procurement director of ARB Electrical. Paul Baloyi,...

Rethink acts of God.
April 27, 2012... Byline: CLEM DANIEL Rethink acts of God Some time ago, I was amazed to discover that the electrical switchgear of the Fukushima nuclear power station was located in the basement of the nuclear power plant. Now I have no claim to knowing...

Recipe for failure.
April 27, 2012... Byline: DUNCAN McLEOD Recipe for failure Last week's national policy colloquium, organised by the communications department, drew a degree of cynicism from the telecoms industry. The view among many industry players is that it's the same old...

ANDULELA - EQUITY INVESTMENT INSTRUMENTS.
April 27, 2012... Byline: Marc Hasenfuss ANDULELA EQUITY INVESTMENT INSTRUMENTS Price: 20c Yr Dec T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R874m 2011 542,8 59,7 0,61 PE: 32 2010 38,4 -3,0 -7,48 Sector PE: n/a t s +1314% It's difficult to get a handle on this...

Another Week.
April 27, 2012... Another Week AFRICA Egypt's state-owned gas company scraps a controversial deal which supplies Israel with 40% of its natural gas at lower than market prices. Several bombs fall on South Sudan border town Bentiu, killing at least one, amid...

Another Week.
April 27, 2012... World Bank president Robert Zoellick criticised Argentina's populist, protectionist plans to nationalise its largest oil company after Buenos Aires said the state is to take over YPF, an Argentine unit of Spain's Repsol. Ecowas and the AU...

Game for a little lootocracy?
April 27, 2012... Byline: Gavin Lewis Game for a little lootocracy? Your Editor's Note headlined Time for play is over (April 20) refers. Have you considered the possibility that, just as the Zimbabwe economy is now run almost exclusively for the benefit of a...

COMINGS & GOINGS.
April 27, 2012... COMINGS & GOINGS Graham Mackay SABMiller's CEO will in July become executive chairman for a year, replacing Meyer Kahn, before becoming nonexecutive chair in 2013. Alan Clark will become group COO and succeed Mackay as CE in 2013. Jane...

Joule demise 'foreseeable'.
April 27, 2012... ELECTRIC CARS Joule demise 'foreseeable' The decision to suspend development of SA's own electric car, the Joule, is unfortunate but inevitable, say motor industry executives. Kobus Meiring, CEO of Cape Town-based Optimal Energy, which...

Fuelling optimism.
April 27, 2012... Byline: David Furlonger VEHICLE EMISSIONS Fuelling optimism Motor companies hope the days when they have to reverse engineer sophisticated engines because they can't function with SA's old-fashioned fuels will soon be a thing of the past. ...

MOTOR INDUSTRY. Battleground.
April 27, 2012... Byline: David Furlonger MOTOR INDUSTRY Battleground China is preparing to barge in on SA's African export party, warns There is no doubt the Chinese will quickly move to install full-scale automotive factories where suitable markets are found...

INDUSTRY POLICY. Directions needed.
April 27, 2012... INDUSTRY POLICY Directions needed Change of emphasis will force industry to change the way it does business WHAT IT MEANS: Ports, railways promise better service Industry waiting for policy small print Lack of self-belief could undermine plans...

SA's apartheid capitalism.
April 27, 2012... Byline: Dalia Goldstone SA's apartheid capitalism The cover story, True state of the economy (February 24) refers. In the case of SA, apartheid and capitalism were intertwined. This economy is rooted in apartheid capitalism and the status quo...

ELECTRICITY MARKETS. Lighting up choice.
April 27, 2012... Byline: Lise Pretorius ELECTRICITY MARKETS Lighting up choice South Africans can only imagine a world in which consumers are able to choose which company to buy their electricity from in a competitive, market-based system. This is what Dutch...

Ready to rumble.
April 27, 2012... Byline: David Furlonger RALLY TO READ Ready to rumble One week to go and we're nearly ready. Team leaders are making their final reconnaissance trips to make sure they get our 1500 guests to their destinations without incident. The last...

RENEWABLE ENERGY PROPOSALS. How much, how soon?
April 27, 2012... Byline: Lise Pretorius RENEWABLE ENERGY PROPOSALS How much, how soon? Flooding the market with renewable energy projects is also not the answer, since there is a learning curve (financial and technological) which needs to be taken into...

E-TOLLING. Foggy road ahead.
April 27, 2012... Byline: Razina Munshi E-TOLLING Foggy road ahead With just days to go before motorists are expected to pay for using Gauteng's freeways, starting April 30, public anger against tolling shows no sign of abating. The SA National Roads Agency...

The other side of the street.
April 27, 2012... Byline: Razina Munshi The other side of the street In contrast to backlash against the introduction of tolling, one company says it recognises the benefits. DHL Express SA MD Michael Druce says upgraded freeways have led to the achievement...

UNSECURED LENDING. No need to panic.
April 27, 2012... Byline: Maarten Mittner UNSECURED LENDING No need to panic Affordability and client behaviour are considered when credit is granted RIAAN STASSEN Finance minister Pravin Gordhan has added to fears of a bubble emerging in the unsecured lending...

GIMME. 3D World comes to SA.
April 27, 2012... Byline: Matiba Mutheiwana GIMME 3D World comes to SA For many SA consumers, buying a 3D TV is like buying a Smartphone with a world of applications but using it only to make phone calls and send SMSs. Consumers spend a lot of money on a 3D...

ECONOMY CORPORATE INVESTMENT. Nothing to grasp at.
April 27, 2012... Byline: Claire Bisseker ECONOMY CORPORATE INVESTMENT Nothing to grasp at An exciting new growth catalyst is required to get SA business to invest WHAT IT MEANS: Corporates' cash surpluses top R520bn Fixed investment has slumped to 18,9% of...

PROPERTY. More forfeit homes.
April 27, 2012... Byline: Joan Muller PROPERTY More forfeit homes It's been three years since the recession hit but thousands of South Africans are still losing their homes. According to Seeff Properties CEO Stuart Manning, about one in three homeowners cannot...

RAIL. Looking down the line.
April 27, 2012... Byline: Shaun Harris RAIL Looking down the line If plans to build a train manufacturing plant in KwaZulu Natal go ahead, the province could become a centre for the industry that government hopes to boost through its local procurement plans....

POLITICS. Minister gets defensive.
April 27, 2012... Byline: Prakash Naidoo POLITICS Minister gets defensive As SA prepares for one of the most comprehensive military reviews since democracy, it appears that opposition parties may be losing the battle to hold the defence & military veterans...

LABOUR . Struggle for skills.
April 27, 2012... Byline: Stafford Thomas LABOUR Struggle for skills Government will spend R800bn on infrastructure projects over the next three years, finance minister Pravin Gordhan stated in his 2011/2012 budget speech and again in his 2012/2013 speech. So...

101 - Why Has China Relaxed the Yuan Trading Band against the Dollar
April 27, 2012... Why has China relaxed the yuan trading band against the dollar, allowing it to rise or fall by 1% from a mid-point every day compared with 0,5% previously? It is seeking greater flexibility to cope with smaller, more volatile capital inflows. It...

BLACKSTAR. Arbitrage riles Shoprite.
April 27, 2012... Byline: Marc Hasenfuss BLACKSTAR Arbitrage riles Shoprite WHAT IT MEANS: Blackstar snatches arbitrage opportunity Shoprite claims no mandate for sale Recently listed investment company Blackstar Group has managed to snaffle a chunk of shares...

BOND MARKET. Prudence pays off for SA.
April 27, 2012... Byline: Stafford Thomas BOND MARKET Prudence pays off for SA Prudent fiscal policy stood SA in good stead during the recent recession. It has paid off again with US banking giant Citi's decision to include SA government bonds in its world...

No Turkish delight.
April 27, 2012... Byline: Maarten Mittner DEAL OF THE WEEK No Turkish delight David Munro CEO, Standard Bank CIB THE LOW DOWN Standard Bank divesting from Turkey Forms part of strategy to focus on Africa Standard Bank's decision to largely exit from Turkey has...

LANDFILL WASTE. Piling up amid tender delay.
April 27, 2012... Byline: Lise Pretorius LANDFILL WASTE Piling up amid tender delay While the City of Johannesburg's landfills are growing, the multibillion-rand tender for managing this waste is still nowhere to be seen, though it has been talked about for...

FINANCIAL SERVICES. Commlife gets mobile.
April 27, 2012... Byline: Marc Hasenfuss FINANCIAL SERVICES Commlife gets mobile Well-known empowerment personality and Brimstone deputy chairman Fred Robertson looks set to list financial services assets on the JSE. Last week Robertson made a quiet move...

Cahora Bassa in numbers.
April 27, 2012... Byline: Charlotte Mathews Cahora Bassa in numbers 22500MW is the capacity of the world's biggest hydroelectric dam, Three Gorges in China. But the Itaipu Dam in Brazil and Paraguay produces more electricity in a year because there is less...

PROFILE. Winning with best ideas.
April 27, 2012... Byline: Lindo Xulu PROFILE Winning with best ideas Sisonke Msimang, executive director of the Open Society Initiative for Southern Africa (Osisa), the largest of George Soros's foundations, was recently named as one of the World Economic...

Interview - Godfrey Nti, CE of the Financial Planning Institute (FPI). Fair advice.
April 27, 2012... Byline: Lindo Xulu QUESTIONS & ANSWERS Fair advice speaks to Godfrey Nti, CE of the Financial Planning Institute (FPI), about the abuses within the industry What is the maximum fee financial advisers are entitled to charge for their...

MEDICAL AID SCHEMES. Bestmed and Sanlam cut ties.
April 27, 2012... MEDICAL AID SCHEMES Bestmed and Sanlam cut ties Bestmed Medical Scheme and Sanlam Health (SMH) have concluded discussions on an amicable end to their relationship. SMH CEO Grant Newton says pending approval by the competition commission, SMH...

LIVING STANDARDS. Inching up.
April 27, 2012... Byline: Claire Bisseker LIVING STANDARDS Inching up It may feel like the cost of living is soaring but South Africans are wealthier and enjoy a higher standard of living than 20 years ago. According to Reserve Bank data, SA's GDP per capita...

WHERE ARE THEY NOW?. Leveraging finance.
April 27, 2012... Byline: Tefo Mothibeli WHERE ARE THEY NOW? Leveraging finance Seven years after leaving Khula Enterprise Finance, Sizwe Tati still fields inquiries from entrepreneurs desperate for financial support. This comes as no surprise as Tati spent 10...

Interview - Matthew Beatty, partner at architecture firm Beatty Vermeiren. 7 QUESTIONS FOR ...
April 27, 2012... Byline: Joan Muller Matthew Beatty, partner at architecture firm Beatty Vermeiren FM: What are the latest trends in home design? Beatty: Downsizing. Mind-sets are shifting to small is beautiful. There's a new appreciation of pared-down...

CINEMA. The queen bitch.
April 27, 2012... Byline: Peter Wilhelm CINEMA The queen bitch This is the blackest of comedies and a venture into the dark night of a trivial soul Young Adult Directed by Jason Reitman and written by Diablo Cody Lead roles: Charlize Theron Patton Oswalt...

Kitchener's Carvery Bar. FOOD FOR THOUGHT. Pleasures of old age.
April 27, 2012... Byline: Justice Malala FOOD FOR THOUGHT Pleasures of old age JUSTICE MALALA 3/4 Kitchener's Carvery Bar The Milner Park, corner Juta and De Beer Streets, Braamfontein Tel: No bookings 5/5 Madiba! 4/5 Excellent 3/5 Good 2/5 Poor 1/5 Zuma Many...

Home of the future.
April 27, 2012... Byline: Joan Muller PROPERTY Home of the future Technological advances and a growing emphasis on saving the planet are set to transform the way we live, says Opening the front door of your home with a palm-scan, checking the inventory of the...

Back to life, tastily.
April 27, 2012... Byline: Razina Munshi THE PLACE TO BE OR NOT TO BE Back to life, tastily NEIGHBOURGOODS MARKET: Where 73 Juta Street, Braamfontein Mood Let them eat... everything It may be an import from Cape Town, but the new Neighbourgoods Market in...

RUGBY. Don't do it, Victor.
April 27, 2012... Byline: David Williams RUGBY Don't do it, Victor There has been much talk of Victor Matfield coming out of retirement to play for the Springboks in the three-test series against England in June. Surely it is already too late for him to do...

THEATRE. Worth the weight.(Theater review)
April 27, 2012... Byline: Chris Thurman THEATRE Worth the weight We have (if the nationwide epidemic of rape is anything to go by) the most pathological gender relations. We have the most violent (unpoliced, unprosecuted or unimprisoned) criminals. We have the...

Interview - Richard Pike, CEO of staffing group Adcorp Holdings. WONDERFUL WEEKEND. Action man.
April 27, 2012... Byline: Sue Grant-Marshall WONDERFUL WEEKEND Action man Richard Pike, CEO of staffing group Adcorp Holdings, is so busy cycling, riding his motorbike, playing drums and swinging a golf club at the weekend that it passes in a flash, he tells...

D&AD AWARDS. SA to the four.
April 27, 2012... Byline: Zweli Mokgata D& AD AWARDS SA to the four Ogilvy Johannesburg was SA's top performer at the annual D& AD Yellow Pencil Awards in London last week. The agency won two of four SA Yellow Pencils, for TV branding and TV...

RAB's new big noise.
April 27, 2012... Byline: Zweli Mokgata RAB's new big noise The Radio Advertising Bureau (RAB) has named Matona Sakupwanya as its new GM. She replaces Gilda de Araujo, who becomes MD of media agency RadioHeads. Before joining RAB, Sakupwanya was GM of...

ALCOHOL ADVERTISING. Bruise cruise.
April 27, 2012... Byline: Zweli Mokgata ALCOHOL ADVERTISING Bruise cruise The health department is promising the liquor and advertising industries an aggressive stance on marketing Government is promising no compromise in its bid to rein in alcohol...

MCCANN WORLDGROUP SA. Behrens out.
April 27, 2012... Byline: David Furlonger MCCANN WORLDGROUP SA Behrens out Reinher Behrens' three-year tenure as CEO of McCann WorldGroup SA officially ends this weekend after he turned down the option of redeployment within the group. Behrens was recently...

ANGLO AMERICAN. Damaging issues.
April 27, 2012... Byline: Charlotte Mathews ANGLO AMERICAN Damaging issues Anglo American chairman Sir John Parker was more than equal to facing down the moral pressure that lawyers for silicosis sufferers tried to exert at the well-attended AGM in London last...

BUSINESS CONNEXION. Too big for its borders.
April 27, 2012... Byline: Larry Claasen BUSINESS CONNEXION Too big for its borders Business Connexion (BCX) has not been shying away from corporate action. Last year it bought listed retail software developer UCS for R614,2m and took over the Canoa Group in a...

Investor's Notebook.
April 27, 2012... Byline: Marc Hasenfuss Investor's Notebook For all my bluster about managing my own pension fund I remain a passive (read: cowardly) investor. The bulk of my life savings that are not held in the Rupert family-owned companies are tucked away...

Times are changing.
April 27, 2012... Byline: Larry Claasen JASCO Times are changing Next month's meeting between hi-tech group Jasco and its partner in M-Tec, Korean fibre-optic cable manufacturer Taihan Electric, will play a big part in Jasco's decision as to whether it remains...

Market watch.
April 27, 2012... Byline: Andrew McNulty Market watch Voters respond badly to economic discomfort. Investors react negatively to political uncertainty. That pattern is again being played out in Europe, this time in France, the eurozone's second-largest...

NEDBANK. Suitor in the wings?
April 27, 2012... Byline: Maarten Mittner NEDBANK Suitor in the wings? The recent war of words between Nedbank chairman Reuel Khoza and government officials over SA's leadership overshadowed a potentially equally important development. Nedbank may be in the...

MINING OUTPUT. Stops and starts.
April 27, 2012... Byline: Charlotte Mathews MINING OUTPUT Stops and starts SA's mining industry had a particularly difficult March quarter this year, with output down in the platinum, gold and iron ore sectors. Underground mining companies in SA generally...

PSG GROUP. Private equity incubator.
April 27, 2012... Byline: Marc Hasenfuss PSG GROUP Private equity incubator Investors who have followed the PSG Group since the mid-1990s will know it is well worth paying attention to the new investments that occasionally pop up on the periphery of the...

SACOIL. Well-oiled plans for cash.
April 27, 2012... Byline: Andrew McNulty SACOIL Well-oiled plans for cash SacOil, the oil exploration company listed on the JSE and on London's AIM market, has taken a step forward with its funding arrangements by posting a US$25m performance bond in Nigeria....

SEKUNJALO INVESTMENTS. Turn in sentiment.
April 27, 2012... Byline: Marc Hasenfuss SEKUNJALO INVESTMENTS Turn in sentiment Empowerment group Sekunjalo Investments, for a variety of well-documented non-operational reasons, has not been in a great space for most of 2012. So it was rather surprising to...

RARE HOLDINGS - INDUSTRIAL SUPPLIERS.
April 27, 2012... Byline: Marc Hasenfuss RARE HOLDINGS INDUSTRIAL SUPPLIERS Price: 13c 6m Dec T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R70m 2011 215,2 -0,3 -12 PE: 2010 174,2 -53 -28 Sector PE: 13 t s +23,5% Some well-known individuals are backing this...

OCTODEC INVESTMENTS - REAL ESTATE.
April 27, 2012... Byline: Joan Muller OCTODEC INVESTMENTS REAL ESTATE Price: R16,49 6m Feb T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R1,47bn 2012 216 116,7 130,6 71,2 Yield: 8,4% 2011 186 78,4 133,1 65 Sector yield: 7,5% t s +17,3% +49% -1,8% +9,5% Achieving...

PREMIUM PROPERTIES - REAL ESTATE.
April 27, 2012... Byline: Joan Muller PREMIUM PROPERTIES REAL ESTATE Price: R15 Yr Feb T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R2,35bn 2012 529,5 183 169,94 115,18 Yield: 8% 2011 452,5 166 228,3 116,9 Sector yield: 7,5% t s +14,9% +10,2% -25,6% -0,9%...

DATACENTRIX - COMPUTER SERVICES.
April 27, 2012... Byline: Larry Claasen DATACENTRIX COMPUTER SERVICES Price: 485c Yr Feb T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R995,5m 2012 1,75 135,4 46,9 19,53 PE: 10,52 2011 1,57 137,2 46,3 9,18 Sector PE: 17,27 t s +11,6% -1,3% +1,3% +112% The tech...

COMMODITIES. Copper swings.
April 27, 2012... COMMODITIES Copper swings Copper has posted some wild swings over the past month, fluctuating between US$7900/t and $8400/t. While London Metals Exchange inventories have continued to decline, Chinese copper inventories have more than doubled...

GOLD. Loss of appeal.
April 27, 2012... GOLD Loss of appeal Gold's appeal as a safe haven asset has been waning as the metal tracked the rest of the commodity complex lower, amid a bout of risk aversion in recent weeks. The lower gold price has largely been a result of the stronger...

OIL. Limited decline.
April 27, 2012... OIL Limited decline The oil price has been on a downtrend over the past week, falling to levels last seen in early-February, as renewed concerns about the European sovereign debt crisis dragged prices lower. Brent crude slipped below US$118/bbl...

Diamond. PSG. Dog Phumelela. DIAMONDS & DOGS.
April 27, 2012... Byline: Jamie Carr DIAMONDS & DOGS Diamond PSG Many a purist investor may raise an eyebrow at the idea of buying PSG rather than nipping in and out of its underlying holdings, but as has been demonstrated with astonishing clarity over the...

ECONOMIC INDICATORS.
April 27, 2012... 134,4 points The Reserve Bank's leading indicator of economic activity for February continued its upward trend. The business cycle indicator rose to 134,4 points from 132,9 in January. It collates data such as business confidence, job...

STOCK TAKE - SOVEREIGN FOOD INVESTMENTS.
April 27, 2012... Byline: Larry Claasen STOCK TAKE SOVEREIGN FOOD INVESTMENTS 1. Cash positive - 2. Revenue up + 3. Tradability + 4. Dividend paid - 5. Profitable + The chicken producer looks set to present some solid results for the year to February as it...

Desalination not explored.
April 27, 2012... Byline: Roger Hull Desalination not explored It's been obvious for some time that SA is running out of water. We welcome the studies by Jeremy Taylor and Peter Johnstone (Features March 30) but I feel the option of desalinisation has not been...

WINNERS & LOSERS.
April 27, 2012... WINNERS & LOSERS WINNER Francois Hollande French socialist presidential challenger Hollande won round one of the country's presidential elections with 27,5% of the votes to face centre-right incumbent Nicolas Sarkozy (26,6%) in a run-off on...

GENERAL RETAILERS. Riding an extended cycle.
April 27, 2012... Byline: Stafford Thomas GENERAL RETAILERS Riding an extended cycle Low interest rates, easy credit and wage increases above inflation have helped drive a strong rise in consumer spending over the past two years. Investors have boosted the JSE...

THE WINNERS. 10. FIRSTRAND.
April 27, 2012... 10 FIRSTRAND Sector: Financial services Total BEE score: 87,47; Ownership score: 18,74; Preferential procurement: 18,43 This blue chip company has spent the past few years playing yo-yo on the TEC rankings. This year it returns to the Top 20...

THE WINNERS. 11. OLD MUTUAL.
April 27, 2012... 11 OLD MUTUAL Sector: Financial services Total BEE score: 87,37; Ownership score: 17,01; Preferential procurement: 19,21 Old Mutual returns to the TEC's Top 20 for the second straight year. Its score crept up a paltry 0,4 percentage points to...

THE WINNERS. 12. BARLOWORLD.
April 27, 2012... 12 BARLOWORLD Sector: General industrials Total BEE score: 87,09; Ownership score: 22; Preferential procurement: 18,17 Barloworld made its presence felt in this survey when it recorded a total score of almost 83 in last year's rankings. This...

THE WINNERS. 13. MTN.
April 27, 2012... 13 MTN Sector: Telecommunications Total BEE score: 86,9; Ownership score: 21,18; Preferential procurement: 17,12 MTN has finally earned serious bragging rights with a vastly improved TEC ranking. Though its market cap, now a huge R250bn, has...