Financial Mail articles from August 2010

Financial Mail archives from August 2010

TRILATERAL AID. Combined priorities.
August 27, 2010... Byline: Lise Pretorius TRILATERAL AID Combined priorities SA support for regional development is a stated policy goal of government, but it would be near impossible to meet the aid requests of other African states, given limited funds and...

Did you hear?
August 27, 2010... A preacher is asked to give a talk at a local women's health symposium. His wife asks about his topic, but he is too embarrassed to tell her it's about sex. Thinking quickly, he replies: I'm talking about sailing. That's nice, says his wife. The...

Did you hear? Prizewinners.
August 27, 2010... 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...

BEE should uplift, not corrupt.
August 27, 2010... BEE should uplift, not corrupt After more than 16 years of deals and progress in many other areas, black economic empowerment (BEE) has made great advances, though some may say it is far too little. It has expanded SA's middle class and helped...

Bank deal could bring more change.
August 27, 2010... Bank deal could bring more change Confirmation that global bank HSBC is in exclusive talks that may lead to a bid for control of Nedbank could be the first chapter in a period of extensive change for the local banking sector. There is no...

Messy in the tent.
August 27, 2010... Byline: BARNEY MTHOMBOTHI Messy in the tent Enemies do play a role in life. In politics especially it's often enemies, not friends, who come in handy. They act as a foil or scapegoat. More important, they can prick egos and challenge shallow...

The jaws of doubt.
August 27, 2010... Byline: NAZMEERA MOOLA The jaws of doubt Much as the Boks snatched defeat from the jaws of victory last Saturday, there is a distinct feeling that SA has managed to squander much of the goodwill generated by the World Cup in the past month....

Held to account.
August 27, 2010... Byline: ANN BERNSTEIN Held to account Private schools for the poor are a global phenomenon. In Colombia, Chile, Nigeria, Kenya, Ghana and elsewhere parents are deserting failing public schools and edupreneurs are emerging to meet local needs....

RUGBY. (Not) playing for keeps.
August 27, 2010... Byline: David Williams RUGBY (Not) playing for keeps If you are leading a Tri-Nations test 22-14 with 18 minutes to go, in front of 94000 supportive fans, you should be able to close down the game. The Springboks could not do it on Saturday,...

Broadband diaries.
August 27, 2010... Byline: DUNCAN McLEOD Broadband diaries It's long been government's desire to bridge the digital divide, to get communications technology in the hands of the rural poor. But its every attempt to address the problem has failed. Now commercial...

Another Week.
August 27, 2010... Another Week AT HOME Real GDP on a seasonally adjusted, annualised basis rose by 3,2% in the second quarter from 4,6% in the first quarter, says Stats SA. The rand comes off its intraday worst levels and is bid at R7,35/US$ on Tuesday, from...

Bill is for self-preservation.
August 27, 2010... Byline: Paul McNaughton Bill is for self-preservation The proposed protection of information bill is nothing more than corrupt politicians' attempt to prevent themselves from being exposed. The new SA is about freedom from the apartheid...

COMINGS & GOINGS.
August 27, 2010... COMINGS & GOINGS Nkaki Matlala. Medi-Clinic's chief clinical officer and director has been appointed as an independent nonexec director of the Clicks Group as from August 24. He is an experienced surgeon and founder of Safika Health. Sipho...

POLITICAL BUSINESS OF MINING. Digging a legal hole.
August 27, 2010... Byline: Carol Paton POLITICAL BUSINESS OF MINING Digging a legal hole BEE has played a key role in some of the controversies relating to mining rights. digs deeper into the issues The net impact was that the ArcelorMittal deal was viewed...

BLACK ECONOMIC EMPOWERMENT. A power keg.
August 27, 2010... Byline: Andrew McNulty BLACK ECONOMIC EMPOWERMENT A power keg Has BEE changed under Jacob Zuma's rule? Amid the noise around controversial mining deals there are some successes, writes WHAT IT MEANS. The empowerment field is not level. ...

THE NEW BEE PLAYERS. Big wheels turn again.
August 27, 2010... Byline: Thebe Mabanga THE NEW BEE PLAYERS Big wheels turn again Empowerment companies in the future will be dominated by two types of players familiar faces who have successfully recast themselves as new deal makers and a group whose rise to...

Economic Indicators.
August 27, 2010... 0,75 percent The JSE all share index has given investors a return of just 0,75% since the beginning of 2010. Short-term volatility, particularly of resources stocks, has been a feature of markets in 2010. 3,5 billion rand The retail value of the...

Limp GDP growth.
August 27, 2010... Byline: Razina Munshi Limp GDP growth In line with the global economy, though slightly disappointing for SA, gross domestic product (GDP) rose by a seasonally adjusted 3,2% y/y in the second quarter of 2010. This is a drop from 4,6% recorded...

AdFocus deadline nears.
August 27, 2010... Byline: David Furlonger AdFocus deadline nears The entry deadline for the 2010 AdFocus awards is fast approaching. All entries must be received by Monday September 13. The are six Agency of the Year awards: for advertising, media, branding...

ADVERTISING. 'Y we R winning'.
August 27, 2010... Byline: David Furlonger ADVERTISING 'Y we R winning' The sudden rise to creative glory by advertising agency Young & Rubicam (Y& R) SA is no one-hit wonder, insists group CEO Fraser Lamb. Though he admits he is surprised at the pace...

EMPLOYMENT EQUITY. A tougher stance.
August 27, 2010... Byline: Razina Munshi EMPLOYMENT EQUITY A tougher stance Because it lacks harsh penalties for nonadherence, employment equity legislation has done little to change the psyche in SA: workplaces are still steeped in racism and discrimination,...

SA-INDIA TRADE. Fruits of new routes.
August 27, 2010... Byline: Lise Pretorius SA-INDIA TRADE Fruits of new routes In April, JSW Energy took an effective 26,5% share in SA Coal Mining Holdings (SACMH) through its acquisition of 48,9% of Royal Bafokeng Capital. This is the first purchase of an...

LOGISTICS. Time to oil the wheels.(Conference notes)
August 27, 2010... Byline: Razina Munshi LOGISTICS Time to oil the wheels The high cost of logistics in SA is hampering the country's global competitiveness. Southern Africa's ability to connect manufacturers and consumers with international markets is still...

WATER EFFICIENCY. Message in a bottle.
August 27, 2010... Byline: Lise Pretorius WATER EFFICIENCY Message in a bottle The security of SA's water is as fragile as that of its energy. But unlike the case of energy sources, there is no substitute for water, and this poses a huge risk for...

Farming ostriches.
August 27, 2010... Byline: Peter Gordon Grant Farming ostriches Fredi Kamenga's letter (August 20) which says your editor's columns are revolting is ostrich-like. How long must one govern a country to get it right. One cannot deny the truth that incompetence...

MINING. Debate drags on.
August 27, 2010... Byline: Thebe Mabanga MINING Debate drags on Parliament's hearings into the establishment of a state-owned mining company have degenerated, once again, into a debate about the nationalisation of mines and whether the state should provide aid...

PENSIONS. Enough to turn hair white.
August 27, 2010... Byline: Stephen Cranston PENSIONS Enough to turn hair white Apathy and short-sightedness are still the enemies of a happy retirement WHAT IT MEANS. Only half of investors get financial advice. Number of pension funds may decrease It is...

PUBLIC SERVICE STRIKE 1. Simmering political row.
August 27, 2010... Byline: Prakash Naidoo PUBLIC SERVICE STRIKE 1 Simmering political row As government and unions ratchet up the rhetoric over the public service strike, there is growing concern that ructions within the tripartite alliance could be prolonging...

PUBLIC SERVICE STRIKE 2. Counting the real cost.
August 27, 2010... Byline: Prakash Naidoo PUBLIC SERVICE STRIKE 2 Counting the real cost While government is looking for an additional R5bn to meet the wage demands of public-sector workers, figures from the department of public service & administration...

Trust-preferred securities (Trups)? 101.
August 27, 2010... Byline: Jacqui Pile What are trust-preferred securities (Trups)? Hybrid securities with the characteristics of equity and debt. They are issued by a wholly owned trust subsidiary or bank and provide for a long maturity, generally 30 years,...

ENTREPRENEUR. The main ad traction.
August 27, 2010... Byline: Zweli Mokgata ENTREPRENEUR The main ad traction With a staff of just 32 people, Mercury Media has reached R300m in annual billings in its eight years of existence. CEO Tamoledi Selane believes the media agency can hit the R500m mark...

ECONOMIC GROWTH. At a price.
August 27, 2010... Byline: Claire Bisseker ECONOMIC GROWTH At a price As public-sector workers in SA down tools for wage increases double the inflation rate, despite the loss of about 1,1m jobs over the past year, they could do worse than look to Germany for a...

GIMME. Global garage sale.
August 27, 2010... Byline: Kate Thompson GIMME Global garage sale Kalahari.net has been an online retail market leader in SA for many years. It offers South Africans access to books, CDs, DVDs (and more recently electronics and even flowers) locally, in the...

MUNICIPALITIES. Kopanong in the dock.
August 27, 2010... Byline: Lise Pretorius MUNICIPALITIES Kopanong in the dock WHAT IT MEANS. Union sues municipality over unpaid pensions. Kopanong fails to pay despite court order Kopanong municipality in the Free State has been taken to court for...

Potash in numbers.
August 27, 2010... Byline: Razina Munshi Potash in numbers US$38,6bn or $130/share is BHP Billiton's hostile bid for Canada's PotashCorp, the biggest fertiliser company. Potash (potassium) is an ingredient of fertiliser. $152,10 was PotashCorp's share price...

THE PLACE TO BE OR NOT TO BE. New run of the mill.
August 27, 2010... Byline: Larry Claasen THE PLACE TO BE OR NOT TO BE New run of the mill THE OLD BISCUIT MILL. Where: Woodstock, Cape Town. Mood: Trendy If there is anything that marks the steady gentrification of grimy Woodstock, it is the sight of...

PROFILE. Workers in the scales.
August 27, 2010... Byline: Prakash Naidoo PROFILE Workers in the scales After more than 37 years working as a prosecutor and senior magistrate, the last thing Danny Adonis expected to be was a full-time trade unionist. They are very different things but...

QUESTIONS & ANSWERS. Over the worst.(Interview)
August 27, 2010... Byline: Shannon Sherry QUESTIONS & ANSWERS Over the worst spoke to SA Land Bank CEO Phakamani Hadebe after he launched the bank's annual report Are you fulfilling your mandate of helping emerging and commercial farmers? Yes, but we can do...

QUOTE OF THE WEEK. MIKE BROWN.(Quotation)
August 27, 2010... Byline: MIKE BROWN QUOTE OF THE WEEK From the Nedbank perspective it would position us well to access the trade flows between Africa and the East and South America. A large global bank could improve Nedbank's competitiveness , NEDBANK'S CHIEF...

REAL PEOPLE DOING UNREAL THINGS. Forward thinker. Leigh Meinert. Business educationist.
August 27, 2010... Byline: Yvonne Fontyn REAL PEOPLE DOING UNREAL THINGS Forward thinker Leigh Meinert. Business educationist THE UNREALITY CHECK Started an NGO at 15. Cofounded a tertiary institution in 2004. Over 300 disadvantaged students receive...

PARLIAMENT AND THE SABC. The doors shall be opened.
August 27, 2010... Byline: Thebe Mabanga PARLIAMENT AND THE SABC The doors shall be opened Media in parliament won a minor but important skirmish this week in the battle for transparency when they prevented the portfolio committee on communications from meeting...

WHERE ARE THEY NOW? Life after advertising.
August 27, 2010... Byline: Zweli Mokgata WHERE ARE THEY NOW? Life after advertising For many people, retirement means fading away into a life of infinite boredom, reminiscing about an adrenaline-filled career long over. But for advertising industry legend...

Prove you're innocent.
August 27, 2010... Byline: Tony Ball Prove you're innocent The other night the ANC's Jackson Mthembu relished using the term punitive action in a TV discussion on the proposed media bill. It would seem to be a trademark of government that when a new bill or...

JSE LTD. INVESTMENT SERVICES.
August 27, 2010... Byline: Larry Claasen JSE LTD INVESTMENT SERVICES Price: R68,72 6m Jun T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R58,5bn 2010 623,3 309 244,1 PE: 14,74 2009 544,5 277,8 215,6 Sector: 11,82 t s +14,4% +11,2% +13,2% The JSE looks like a good...

BOOK OF THE WEEK. Cracks in the Wall?
August 27, 2010... Byline: Richard Steyn BOOK OF THE WEEK Cracks in the Wall? THE BIG SHORT By Michael Lewis 266 pages Allen Lane R280 Michael Lewis rose to fame with Liar's Poker, a savagely funny account of his early career as an investment adviser with the...

CINEMA. Beasts in the jungle. Predators.
August 27, 2010... Byline: Peter Wilhelm CINEMA Beasts in the jungle This reboot of the Predator franchise wrenches the tale back to its basis in primeval terror Predators Directed by Nimrod Amtal. Lead roles: Adrien Brody; Laurence Fishburne; Topher Grace;...

GOLF. Immutable rules rule.
August 27, 2010... Byline: Jed Martin GOLF Immutable rules rule wonders whether the Rules of Golf should be allowed to ruin the day When it comes to the Rules of Golf, there are purists who believe they are the glue that binds the traditions of the game...

FOOD FOR THOUGHT. Keep the lights on.
August 27, 2010... Byline: JUSTICE MALALA FOOD FOR THOUGHT Keep the lights on *** 1/2 Jack Buddha. Corner Tshweu and Mashabela Streets, Mamelodi. Tel: (011) 402-7709 ***** Obama!; **** Excellent; *** Good; ** Poor; *Media tribunal This is building up to...

AT BREAKFAST WITH THE FM. Not just about money.
August 27, 2010... Byline: Ian Fife AT BREAKFAST WITH THE FM Not just about money with Affordable Housing Co chief operating officer Renney Plit at Fire & Ice Hotel, Melrose Arch, Johannesburg HOW HE CHILLS. Far too busy. A bit of gym. Has leisure...

EATING OUT GAUTENG. New look, same charm.
August 27, 2010... Byline: Linda Stafford EATING OUT GAUTENG New look, same charm ZAFF. Address: Hyatt Regency, 191 Oxford Road, Rosebank, Johannesburg. Tel: (011) 280-1234 That SA hotels had to up their game for the soccer World Cup has been good for...

MEDIA. Rustle and click.
August 27, 2010... Byline: Zweli Mokgata MEDIA Rustle and click Caxton's 2010 decline in earnings is indicative of the dwindling value that can be delivered by traditional media assets. As advertising spending remains under pressure, companies such as Caxton...

ASPEN. Nice price, mate.
August 27, 2010... Byline: Sasha Planting ASPEN Nice price, mate The list of SA firms that have tried and failed in Australia is long. But that of successful operations is arguably longer (see table). Aspen Pharmacare is one of the successes. But its recent...

Correction.(Correction notice)
August 27, 2010... CORRECTION In the story Avoid the nightmare in the FM of August 20 (Money & Investing, page 72) all investment returns referred to are nominal and not real returns, as was erroneously indicated.

Crisis watch.
August 27, 2010... Byline: Andrew McNulty Crisis watch It almost seems like old times. The deals and bids are coming thick and fast. Japan's NTT is taking out Dimension Data, the JSE's biggest IT company. Last week the world's biggest miner, BHP Billiton,...

Diamond: Super Group. Dog: Hospitality Property.
August 27, 2010... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond Super Group The group may not have clawed its way back yet into super-duper territory, but it's a long way from the cowering husk we saw last year, standing on the gallows...

9 questions for ... Kuseni Dlamini, CEO, Old Mutual SA and emerging markets.
August 27, 2010... Byline: Stephen Cranston 9 questions for... Kuseni Dlamini, CEO, Old Mutual SA and emerging markets You have been in financial services for only a year after a career at Anglo American. How has the transition been? I believe that, once you...

GOLD. Strong uptrend.
August 27, 2010... GOLD Strong uptrend The price of gold has remained on a strong uptrend, with prices up nearly 4% since the start of the month. Gold futures have increased in recent weeks as concerns over the outlook for the global recovery fuelled demand for...

COPPER. Imports rise.
August 27, 2010... COPPER Imports rise Refined copper imports to China gained for the first time in four months in July as traders profited from disparities between prices in London and Shanghai. Stockpiles monitored by the Shanghai exchange stood at 110371t at...

OIL. Hit by economy.
August 27, 2010... OIL Hit by economy The price of Brent crude oil plunged below US$75/bbl last Friday (its lowest level in six weeks) after poor economic data out of the US boosted fears of a slowdown in the global economy. Data from the US department of labour...

GRINDROD. Maputo plan pays off.
August 27, 2010... Byline: Razina Munshi GRINDROD Maputo plan pays off After an investment that spanned four years, shipping company Grindrod has for the first time made a profit from the Maputo port terminal in Mozambique. The port has been identified as one...

INVESTMENT REVIEW. Rolling with the punches.
August 27, 2010... Byline: Stafford Thomas INVESTMENT REVIEW Rolling with the punches When it comes to producing market-beating returns, Old Mutual Dynamic Floor Fund (OMDF) is unlikely ever to feature. But it is even less likely to feature among funds where...

ITALTILE. Retail bellwether.
August 27, 2010... Byline: Sasha Planting ITALTILE Retail bellwether It doesn't take a genius to figure out which retailers were victims of the recession. A stroll around any small town reveals that small, stand-alone stores have closed in their multitudes....

JSE. Platinum weakens.
August 27, 2010... Byline: Garth Mackenzie JSE Platinum weakens The JSE's platinum mining index has spent much of 2010 trading in a sideways, choppy range. Recently, though, the index has been showing some signs of weakness, with a series of falling highs since...

PROPERTY. Battle of London.
August 27, 2010... Byline: Ian Fife PROPERTY Battle of London SA entrepreneur Natie Kirsh is in the thick of a battle over London-listed property company Minerva. As its biggest shareholder, with 29,5%, he has called a general meeting on September 8 to try to...

COUNTRY BIRD HOLDINGS. FARMING & FISHING.
August 27, 2010... Byline: Sasha Planting COUNTRY BIRD HOLDINGS FARMING & FISHING Price: 260c Yr Jun T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R525m 2010 2,4 68,4 23,71 7,9 PE: 11,18 2009 2,2 138,2 65,74 19,02 Sector: 13,01 t s +9% -51% -64% -85% Demand...

DIAMONDCORP. DIAMONDS & GEMSTONES.
August 27, 2010... Byline: Sasha Planting DIAMONDCORP DIAMONDS & GEMSTONES Price: 120c 6m Jun T/O (GBP) EBT (GBP) EPS (p) DPS (p) Mkt cap: GBP178m 2010 (1,6m) (0,029) PE: -1,48 2009 67238 (974476) (0,024) Sector: -6,65 t s GBP7,1m of equity capital was...

SUPER GROUP. TRANSPORTATION SERVICES.
August 27, 2010... Byline: Razina Munshi SUPER GROUP TRANSPORTATION SERVICES Price: 60c Yr Jun T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R1,9bn 2010 6,9 217,6 6,4 PE: 8,11 2009 7,1 116,4 (396,1) Sector: 11,99 t s -2% +87% n/a The disposal of nonperforming...

TRENCOR. A lesson in containment.
August 27, 2010... Byline: Stafford Thomas TRENCOR A lesson in containment Most SA companies can only dream of booming demand. But it is a reality for Trencor, which is in the enviable position of having as its major asset a 61,9% stake in the world's largest...

RETAIL. Coat cut to cloth.
August 27, 2010... Byline: Sasha Planting RETAIL Coat cut to cloth In the fashion world, retailing is not as simple as just buying and selling garments and footwear. It's a complex global logistics process involving hundreds of products, a multitude of...

MTN. Selection talk time.
August 27, 2010... Byline: Larry Claasenr MTN Selection talk time When MTN presented its half-year results last week, outgoing CEO Phuthuma Nhleko shed little light on how the search for his replacement was going. He alluded to the board, chaired by Cyril...

NORTHAM PLATINUM. PLATINUM & PRECIOUS METALS.
August 27, 2010... Byline: Larry Claasen NORTHAM PLATINUM PLATINUM & PRECIOUS METALS Price: R42,21 Yr Jun T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R152,2bn 2010 3,94 974,6 177,9 40 PE: 23,75 2009 3,18 1014,5 183,7 78 Sector: 95,02 t s +23,8% -3,9% -3,2%...

Investor's Notebook.
August 27, 2010... Byline: Stephen Cranston Investor's Notebook People seem to have very short memories about HSBC (See Money & Investing pages 52 and 53). The bank launched its SA branch with a lavish party, lavish enough even for the then Reserve Bank...

The dogs of Hoare.
August 27, 2010... Byline: Eddie Botha The dogs of Hoare PW Botha said he would have myself and Rapport charged with contravening the Official Secrets Act It was with interest that I read your piece on former Rand Daily Mail editor Rex Gibson (FM Fox August...

No work, no pay at all.
August 27, 2010... Byline: Roger Lee No work, no pay at all Driving along Faure Marine Drive earlier this week I passed numerous men at the side of the road. Complete with overalls, yellow builder's levels, ladders, paint rollers and so on, they were all...

Why port costs differ.
August 27, 2010... Byline: Mboniso Sigonyela Why port costs differ Comparisons between port charges in SA and those elsewhere cannot proceed sensibly without major differences regarding the sources of funding being acknowledged. In SA, port users pay for all...

THE UGLY DUCKLING. TRANSPACO.
August 27, 2010... Byline: Larry Claasen THE UGLY DUCKLING TRANSPACO 1. Cash positive + 2. Revenue up - 3. Share ignored - 4. Dividend paid + 5. Profitable + The packaging business has a nice look about it. There was a slight drop in revenue for the year to...

WINNERS & LOSERS.
August 27, 2010... WINNERS & LOSERS WINNER Pat Davies. Sasol's CE said in China he was delighted with the positive recommendation of the state's panel of experts on Sasol's application to build China's first coal-to-liquid plant. LOSER Zwelinzima Vavi. As...

9 questions for ... Nick Holland, CEO of Gold Fields.
August 13, 2010... Byline: Charlotte Mathews 9 questions for... Nick Holland, CEO of Gold Fields, on growth Why do another three black empowerment transactions? All our SA mines now have new order mining rights. The completion of these transactions in the...

Did you hear?
August 13, 2010... A preacher's wife is expecting a baby so he goes to the congregation and asks for a raise. After much consideration and discussion, they pass a rule that whenever the preacher's family expands, so will his pay cheque. After six children, this...

Did you hear? Prizewinners.
August 13, 2010... 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...

Road to success.
August 13, 2010... Byline: NAZMEERA MOOLA Road to success Over the long weekend my husband and I attended a wedding in Mafikeng. According to the hotel web-site, the city is a comfortable three-hour drive from Johannesburg along the N14. Unfortunately, it...

Responsibility and the right to strike.
August 13, 2010... Responsibility and the right to strike Dogs bark and trade unions strike. It's what they do and they can't be blamed for fulfilling their DNA. They have little meaningful power beyond their legal right to organise a withdrawal of labour by their...

Greenmail or blackmail?
August 13, 2010... Greenmail or blackmail? In the 1980s, greenmail was a fashionable activity in the US. Corporate raiders such as T Boone Pickens and Sir James Goldsmith made fortunes out of deals that were popularly known as greenmail. They bought stakes in...

Curse of dirty stones.
August 13, 2010... Byline: BARNEY MTHOMBOTHI Curse of dirty stones The sight of Naomi Campbell, the so-called supermodel, in front of the judges of the world court at The Hague describing the dirty-looking stones she allegedly received from Charles Taylor once...