Financial Mail articles from February 2010

Financial Mail archives from February 2010

A fraction of the cost.
February 26, 2010... Byline: Ian Fife A fraction of the cost Fractional ownership seems to be the fastest-growing sector of leisure property. In 2008/2009 prices rose, according to Seeff, the biggest operator in the fractional market sector in SA. The recently...

AFRICAN BUSINESS. Gaps for bridge-builders.
February 26, 2010... Byline: Evan Pickworth AFRICAN BUSINESS Gaps for bridge-builders Telecommunications still offers plenty of opportunity for operators in Africa as only half of the continent's 800m population are connected to a service. In some countries,...

LEISURE PROPERTY. Soccer won't save it.
February 26, 2010... Byline: Ian Fife LEISURE PROPERTY Soccer won't save it Owners of leisure properties and second homes have suffered most from the property slump that has just ended. Demand has fallen more than 50% since 2008, but there are two good reasons...

No power over jobs.
February 26, 2010... Byline: SIMI SIWISA No power over jobs In his piece Growth versus inflation (On My Mind January 8), Monale Ratsoma argues that the Reserve Bank's mandate should be extended to include employment. This, he says, would mean employment came up...

Did you hear?
February 26, 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...

Forced savings are on their way.
February 26, 2010... Forced savings are on their way This weekend the taxman's offer to enhance your savings expires. Anyone who wants to buy a retirement annuity (RA) in this financial year needs to buy one before the end of February. Since they were first marketed...

Liberty lives on a slippery slope.
February 26, 2010... Liberty lives on a slippery slope Civil servant is an old-fashioned term, and it has too easily been supplanted by titles like official and director-general. But it contains a reminder that those who work for government the civil service are not...

Capitalism chastened.
February 26, 2010... Byline: BARNEY MTHOMBOTHI Capitalism chastened Time was, when everything was so simple; when the West was the citadel of capitalism and its benefits, communism reigned supreme in the East, and everything else in between was Third World, in...

Utility in name only.
February 26, 2010... Byline: NAZMEERA MOOLA Utility in name only For most of last week I struggled to maintain a connection to my company network. I had to reconnect to the network around 30 times a day on Monday and Tuesday as my superfast Telkom line routinely...

A race for smarts.
February 26, 2010... Byline: DUNCAN McLEOD A race for smarts Operating systems were all the talk last week at Mobile World Congress, the cellphone industry's annual confab in Barcelona. Apple, Microsoft, Google, Nokia and others are engaged in a battle over whose...

Half the budget story.
February 26, 2010... Byline: Gavin Lewis Half the budget story While finance minister Pravin Gordhan is rightly praised for his balancing act in the budget, taxpayers need reminding that the other budget shoe has not yet dropped. That shoe is in the form of the...

THE SA SITUATION. Hard sell for SA.
February 26, 2010... Byline: David Furlonger THE SA SITUATION Hard sell for SA Government says it is committed to establishing an electric-vehicle industry in SA. But how long will sceptical local consumers take to support it? WHAT IT MEANS. Survey says SA...

A quiet hum in the garage.
February 26, 2010... Byline: Matthew Hill A quiet hum in the garage Mention the likelihood of electric cars coming to SA at the proverbial dinner table and you're likely to get a cynical response something like: How are you going to get to the office during load...

ALTERNATIVE FUELS. Back to the future.
February 26, 2010... Byline: David Furlonger ALTERNATIVE FUELS Back to the future The first nuclear prototype, the 1958 Ford Nucleon, was powered by a small nuclear reactor It says much about the motor industry's tardy quest for clean fuels that the technology...

CLEANER ENGINES. Emission impossible.
February 26, 2010... Byline: David Furlonger CLEANER ENGINES Emission impossible While government and industry debate the best way for SA to follow the electrical revolution, SA hasn't worked out how to respond to previous green automotive technologies. Last...

QUESTIONS AND ANSWERS. Charged up.
February 26, 2010... Byline: David Furlonger QUESTIONS AND ANSWERS Charged up How does Optimal Energy, which doesn't have an assembly plant, expect its Joule electric car to compete with those of multinational giants, which are about to start high-volume...

ELECTRIC CARS. Battery farms.
February 26, 2010... Byline: David Furlonger ELECTRIC CARS Battery farms Motor companies have had a tough time, coming out of a bruising recession. More recently, some have been reeling from the recall of cars. Now, under environmental pressure, the world's...

Diamond. AngloGold Ashanti. Dog: Impala Platinum.
February 26, 2010... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond. AngloGold Ashanti This week the spotlight turns to the shovellers, which AngloGold Ashanti is leading by posting record profits. A 40% surge in the gold price during 2009...

Economic Indicators.
February 26, 2010... 120,9 points The Reserve Bank's leading indicator of economic activity rose by 13,1% y/y in December, up from 10,7% in November. It tends to lag the global economic cycle by a few months. 7,2 percent The budget deficit for 2009/2010 is estimated...

Retail sales.
February 26, 2010... Byline: Razina Munshi Retail sales With a flurry of festive season spending, retail sales increased sharply during December. The annual rate of decline in total sales moderated to 3,7% y/y from a decline of 6,6% in November. However, the...

RESERVE BANK. Through the back door.
February 26, 2010... Byline: Claire Bisseker RESERVE BANK Through the back door In a carefully staged performance on budget day, finance minister Pravin Gordhan clarified the Reserve Bank's mandate: its job wasn't to pursue low inflation at any cost the impact on...

AVIATION. Western union.
February 26, 2010... Byline: David Furlonger AVIATION Western union If kulula has any fears of being forced to surrender its exclusive flight status out of Lanseria airport, it's not showing them. A 35% increase in flights to Durban and Cape Town from the...

BROADCASTING. Signal failure.
February 26, 2010... Byline: Matebello Motloung BROADCASTING Signal failure The digital migration regulations published last week by the Independent Communications Authority of SA (Icasa) confirm two things. These are that SA will miss its November 2011 deadline...

ROAD ACCIDENT BENEFIT SCHEME. Fund gets physiotherapy.
February 26, 2010... Byline: Thebe Mabanga ROAD ACCIDENT BENEFIT SCHEME Fund gets physiotherapy The proposed new compensation system for road accident victims will focus on medical care and transfer most of the other costs of an accident to the social security...

RALLY TO READ. Programme works, says report.
February 26, 2010... Byline: David Furlonger RALLY TO READ Programme works, says report Reading and writing skills of children in primary schools supported by the Rally to Read rural education programme have improved significantly, says a new report. A...

New governance measure. 101.
February 26, 2010... Byline: Razina Munshi What will a new governance measure that was launched this month do? Introduced by the Institute of Directors, the governance assessment instrument will measure how companies perform against the King 3 corporate...

FARMING. Sweet market segment.
February 26, 2010... Byline: Shannon Sherry FARMING Sweet market segment The SA citrus industry is cashing in on the benefits of investment and aggressive marketing by capturing a big slice of the lucrative US market. It aims to realise more than R4bn for its...

ADVERTISING. Commercial fishing.
February 26, 2010... Byline: David Furlonger ADVERTISING Commercial fishing You've probably heard of horse wranglers traditionally, American cowboys who take care of saddle-horses. Or even cattle wranglers. But fish wranglers? That's what advertising agency...

World Cup in numbers.
February 26, 2010... Byline: Claire Bisseker World Cup in numbers R33bn The total amount national government has committed to World Cup-related infrastructure. 130200 jobs have been created in the construction work on 10 world-class sports stadiums, six of...

WINNERS & LOSERS.
February 26, 2010... WINNERS & LOSERS WINNER Sir John Parker. Investors in Anglo American will have noted the chairman's signal that unlike last year Anglo will pay a dividend in 2010. That puts pressure on CEO Cynthia Carroll and her streamlined management...

AFRICAN DEVELOPMENT BANK. Lending pot needs top-up.
February 26, 2010... Byline: Carol Paton AFRICAN DEVELOPMENT BANK Lending pot needs top-up The African Development Bank (AfDB), which was at the forefront of helping African countries through the global economic crisis, has reached its lending limit and is...

COMPANIES ACT. Speak up now on rules.
February 26, 2010... Byline: Thebe Mabanga COMPANIES ACT Speak up now on rules The most drastic overhaul of company law in SA is nearing completion with Monday's deadline for comment on the regulations of the Companies Act of 2008. The regulations provide details...

INDUSTRIAL POLICY. Forward to the factory.
February 26, 2010... Byline: Carol Paton INDUSTRIAL POLICY Forward to the factory But ambitious plan is based on questionable numbers and lacks a budget WHAT IT MEANS. Focus returns to manufacturing. Cheaper finance. Restructuring for procurement The...

THE PLACE TO BE OR NOT TO BE. Gorge on scenery.
February 26, 2010... Byline: Elizabeth van Rensburg THE PLACE TO BE OR NOT TO BE Gorge on scenery WHAT IT MEANS. Where: Prince Albert . Mood: Awe-inspiring Should you find yourself in the George or Oudtshoorn region, do treat yourself to a round trip to...

Another Week.
February 26, 2010... Another Week AT HOME Pravin Gordhan presents the 2010 budget, one characterised by pragmatism and the need for change. The industrial policy action plan is unveiled by trade & industry minister Rob Davies. Anglo American reports a...

COMINGS & GOINGS.
February 26, 2010... COMINGS & GOINGS Boyce Mkhize. The National Nuclear Regulator has appointed Mkhize as CEO. He brings a wealth of expertise to the organisation as a seasoned registrar and CEO with the Health Professions Council of SA. Schalk Ackerman. Has...

DISPUTE RESOLUTION. Talk is cheaper.
February 26, 2010... Byline: Prakash Naidoo DISPUTE RESOLUTION Talk is cheaper After a recent landmark high court ruling hailing the benefits of alternative dispute resolution (ADR), there has been a marked increase in the number of litigants opting to resolve...

PROFILE. Final whistle is the start.
February 26, 2010... Byline: Matebello Motloung PROFILE Final whistle is the start The question many people are asking is, what will happen to SA after the 2010 soccer World Cup? Not only are tourism figures on the decline internationally, but the spotlight SA...

India blessed by Duminy?
February 26, 2010... Byline: Phillip Ronbeck India blessed by Duminy? Based on their respective performances during the recently drawn two-test cricket series in India, would it be fair to say that while Hashim Amla was deservedly SA's man of the series, JP...

Payback time for pals.
February 26, 2010... Byline: John Kane-Berman Payback time for pals I refer to your report (FM Fox February 19) that municipal councillors who appoint pals or party hacks without basic qualifications as municipal managers will soon be forced to pay back the money...

EATING OUT CAPE. Experiment with ease.
February 26, 2010... Byline: Katy Chance EATING OUT CAPE Experiment with ease CUVEE. Address: Simonsig, Kromme, Rhee Road, near Koelenhof. Tel: (021) 888-4932. Go to: www.cuveeatsimonsig.co.za Cuvee restaurant at Simonsig Estate near Stellenbosch is...

CINEMA. A view from the afterlife. The Lovely Bones.
February 26, 2010... Byline: Peter Wilhelm CINEMA A view from the afterlife This dark story is part of a cinema movement to break the boundaries of realism The Lovely Bones Directed by Peter Jackson. Lead roles: Saoirse Ronan; Rachel Weisz; Mark Wahlberg;...

GOLF. Driven to extremes.
February 26, 2010... Byline: Jed Martin GOLF Driven to extremes As the nuttiest of golf nuts go, a certain Pretorian takes first prize, writes Golf nuts are a particularly unusual and rare breed. They take the game to extremes that leave other golfers...

FOOD FOR THOUGHT. A culture of reading.
February 26, 2010... Byline: JUSTICE MALALA FOOD FOR THOUGHT A culture of reading ***** Summer book sale. Exclusive Books, All branches. Tel: (011) 798-0000. *****Mandela; **** Excellent; *** Good; **Zuma; *Malema What is so special is the seeing,...

AT LUNCH WITH THE FM. A lifetime of performance.
February 26, 2010... Byline: Hilary Prendini Toffoli AT LUNCH WITH THE FM A lifetime of performance with Big Concerts International MD Attie van Wyk at Portofino in Green Point, Cape Town HOW HE CHILLS. Every day at 4.15pm he spends an hour at Virgin Active...

AFROX. Coming up for oxygen.
February 26, 2010... Byline: Razina Munshi AFROX Coming up for oxygen To offset projections of a drop in margins, Afrox has cut a substantial R200m in costs. The gases and welding company, which has a market cap of R7bn, embarked on an extensive cost-cutting...

ANGLO AMERICAN. Look further ahead.
February 26, 2010... Byline: Matthew Hill ANGLO AMERICAN Look further ahead No nasty surprises was the theme of Anglo American's results for 2009. In fact, all those who had it in for CEO Cynthia Carroll had a lousy morning last Friday, when the group presented a...

AFRICAN RAINBOW MINERALS. Motsepe won't chance his ARM.
February 26, 2010... Byline: Matthew Hill AFRICAN RAINBOW MINERALS Motsepe won't chance his ARM It's not as though he needs it, but Patrice Motsepe (ranked as the richest South African) isn't getting a cent of Anglorand Securities analyst Louis Venter's money. ...

BANKS. Time for progress.
February 26, 2010... Byline: Evan Pickworth BANKS Time for progress Banks need to prepare for some tough bargaining WHAT IT MEANS. Short shrift for lack of progress on charter and charges. More competition We are now close to finalising the whole process...

Crisis watch.
February 26, 2010... Byline: Andrew McNulty Crisis watch The link between domestic economic growth and company earnings is often tenuous. Many of the biggest companies on the JSE depend on the world economy, or on markets outside SA, rather than the local...

DISTELL. Enough to lift its spirits?
February 26, 2010... Byline: Andrew McNulty DISTELL Enough to lift its spirits? Booze and tobacco are often seen as safe havens in a recession, but that is only partly true. Though sales of alcoholic drinks have held up better than in many other sectors, they...

GOLD. Month high.
February 26, 2010... GOLD Month high The price of gold jumped to a one-month high on Monday as the rally in the US dollar stalled on speculation that the US Federal Reserve may remove emergency stimulus earlier than initially anticipated. Over the past month, the...

COMMODITIES. Coal rally.
February 26, 2010... COMMODITIES Coal rally The price of Richards Bay coal has rallied considerably, up nearly 21% from lows reached last year. Even though prices have eased somewhat in recent weeks, the market still expects the coal price to remain resilient with...

OIL. On the rise.
February 26, 2010... OIL On the rise The price of oil increased steadily over the past week, with Brent crude hovering below the US$80/bbl level at the start of the week. Last Thursday, the US Federal Reserve hiked its discount rate for the first time in three years...

TAX. Not even chocolate's safe.
February 26, 2010... Byline: Evan Pickworth TAX Not even chocolate's safe Social justice is close to finance minister Pravin Gordhan's heart but he remains pragmatic about his ideals and reality. In his address to the media in October last year, he highlighted...

GRINDROD. A matter of timing.
February 26, 2010... Byline: Razina Munshi GRINDROD A matter of timing Grindrod has been one of the best-performing equities in the market in the past decade, but the recession has caused its sprint to flag. Lower demand coupled with soft commodity prices and the...

IMPALA PLATINUM. PLATINUM & PRECIOUS METALS.
February 26, 2010... Byline: Matthew Hill IMPALA PLATINUM PLATINUM & PRECIOUS METALS Price: R189,86 6m Dec T/O (Rbn) EBT (Rbn) EPS (c) DPS (c) Mkt cap: R118bn 2009 11 2,4 211 120 PE: 55 2008 16 8,2 877 120 Sector: 90 t s -38% -70% -76% President Robert Mugabe...

MEDIA. Not so comfortable.
February 26, 2010... Byline: Matebello Motloung MEDIA Not so comfortable To diversify or not to diversify? This is clearly no longer an option for media companies, and Caxton/CTP Publishers is proof. The chickens have finally come home to roost for the printing...

PROPERTY. The mystery of yield.
February 26, 2010... Byline: Ian Fife PROPERTY The mystery of yield Property sector's yields seem too high; sector underrated WHAT IT MEANS. Listed sector yields 9%, 2%-3% for general equities. Why the big difference in yields? It's general equities that...

RETIREMENT ANNUITIES. A case of use it or lose it.
February 26, 2010... Byline: Stephen Cranston RETIREMENT ANNUITIES A case of use it or lose it The end of February has traditionally been one of the peak sales times for life insurance companies. Every year a tax incentive is offered to invest in retirement...

MYRIAD MEDICAL HOLDINGS. MEDICAL SUPPLIES.
February 26, 2010... Byline: Sasha Planting r MYRIAD MEDICAL HOLDINGS MEDICAL SUPPLIES Price: 90c 6m Nov T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R142m 2009 155 19,6 7,6 0 PE: 7,14 2008 134 17 6,5 0 Sector: -24 t s +15% +15,3% +16,9% Demand is solid in public...

RETAIL. Still in the trenches.
February 26, 2010... Byline: Sasha Planting RETAIL Still in the trenches All the evidence points to the end of the recession, and an uptick in consumer spending is sought around every corner. But continuing retrenchments, most recently at PG Bison and Afrox, and...

THE UGLY DUCKLING. MUSTEK.
February 26, 2010... Byline: Larry Claasen THE UGLY DUCKLING MUSTEK 1. Cash positive + 2. Revenue up + 3. Share ignored - 4. Dividend paid + 5. Profitable + The computer assembler, like most other businesses, has had a torrid time. Turnover increased a modest...

Investor's Notebook.
February 26, 2010... Byline: Stephen Cranston Investor's Notebook Is it appropriate for the board of an organisation to unilaterally defect to a much bigger organisation? The board of the Alternative Investment Management Association (AIMA) last week suddenly...

Two sides to SOE coin.
February 26, 2010... Byline: Goodison Molefe Two sides to SOE coin Your cover story on state-owned enterprises (February 19) refers. My limited knowledge of journalism tells me that any reported story has to be balanced and objective. I must commend your team for...

An extra slice a day.
February 26, 2010... Byline: Eric Artmore An extra slice a day Finance minister Pravin Gordhan has presented a budget that is very disappointing for poor children and their families. Most shocking is the minuscule increase in the child support grant by R10 per...

REAL PEOPLE DOING UNREAL THINGS. Stuff it, let's rough it.
February 26, 2010... Byline: Zohra Mohamed REAL PEOPLE DOING UNREAL THINGS Stuff it, let's rough it Tony Psaila. Campaigner against violence THE UNREALITY CHECK Travelling around the world for seven years. Raising funds for victims of violence. Driving a...

CITY LODGE HOTELS. HOTELS.
February 26, 2010... Byline: Matebello Motloung CITY LODGE HOTELS HOTELS Price: R77,90 6m Dec T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R3,3bn 2009 339 127,7 206,1 150 PE: 16,73 2008 342 96,7 100,8 203 Sector: 14,50 t s -0,9% +32% +104% -26,1% The global crunch...

TECHNOLOGY. Leaner and looking good.
February 26, 2010... Byline: Larry Claasen TECHNOLOGY Leaner and looking good At first glance, it looks like Simeka BSG is in the process of reinventing itself. A sharp drop in sales volumes has driven the technology group to shut down its plant, which assembled...

Discipline parastatals.
February 26, 2010... Byline: Dion George Discipline parastatals We need to see action that will be reflected in the numbers on the fiscal framework and... in the pockets of South Africans In 2010/2011 the nonfinancial parastatals, mentioned in your Cover Story...

JSE. Retail strength.
February 26, 2010... Byline: Garth Mackenzie JSE Retail strength The JSE general retailers index has been climbing steadily since the March 2009 lows. Recently the index has broken out above a triple top resistance line, created by several peaks which appeared...

TRENCOR. SHIPPING & PORTS.
February 26, 2010... Byline: Larry Claasen TRENCOR SHIPPING & PORTS Price: R31,50 Yr Dec T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R5,9bn 2009 1,95 653 138,1 85 PE: 23,39 2008 3,29 1122 353,8 120 Sector: 123,02 t s -40% -42% -61% -29% Trencor is a container...

Is this a genuine diamond?
February 26, 2010... Byline: Kerron Edmunson Is this a genuine diamond? I thoroughly enjoy your Editor's Note, which is objective and well-reasoned, and always offers food for thought. Now on to other and less pleasant matters. I noted that Vodacom has won Jamie...

Did you hear?
February 26, 2010... The blonde reports for her university examination, which consists of yes/no type questions. She takes a seat and stares blankly at the question paper for five minutes. In a fit of inspiration, she takes her purse out, removes a coin and starts...

ENTREPRENEUR. Pulling in the moola.
February 26, 2010... Byline: Robert Quarshie ENTREPRENEUR Pulling in the moola Yusuf Moola founded his business, Moola Technologies, in 2008, after he quit his job at an established IT company so he could spend more time with his children. Once set up, he worked...

GIMME. Berry is the new black.
February 26, 2010... Byline: Kate Thompson GIMME Berry is the new black The BlackBerry Bold 9700 is Research in Motion's latest and greatest offering to the smart phone market. The 9700 is the top product in the range and boasts a sleeker, more compact design, an...

THE LAW. Comparative case.
February 26, 2010... Byline: Prakash Naidoo THE LAW Comparative case WHAT IT MEANS. Judges must be above any suspicion of bias. Lesotho precedent appears compelling If you put yourself in the place of an accused person, you do not want to appear before a...

QUOTE OF THE WEEK. Brian Kantor.
February 26, 2010... Byline: Brian Kantor QUOTE OF THE WEEK It is too late for lower interest rates. We should have had them a long time ago. Interest rates in SA should never have got as high as they did... I think it was quite a shocking failure of judgment...

QUESTIONS & ANSWERS. Putting out fires on inflation targeting.
February 26, 2010... Byline: Claire Bisseker QUESTIONS & ANSWERS Putting out fires on inflation targeting Finance minister Pravin Gordhan has angered Cosatu for failing to overhaul SA's monetary policy approach. asked him to clarify his position Have you...

ITALTILE. RETAILERS HARDLINES.
February 26, 2010... Byline: Larry Claasen ITALTILE RETAILERS HARDLINES Price: 420c 6m Dec T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R3,82bn 2009 1,43 208 17,9 6 PE: 12,65 2008 1,38 197 17,1 6 Sector: 14,13 t s +3,6% +5,5% +4,6% The tile retailer did well to...

RUGBY. Kicks also count.
February 26, 2010... Byline: David Williams RUGBY Kicks also count Freak or the sign of the future? I cannot recall a rugby match at any level ending in a score of 72-65, as happened last weekend in the Super 14 contest between the Lions and the Chiefs in...

HEDGE FUNDS. Battered, not too bruised.
February 26, 2010... Byline: Stephen Cranston HEDGE FUNDS Battered, not too bruised Hedge funds are designed to be uncorrelated with other asset classes. Internationally, they lost a great deal of credibility when even diversified funds of hedge funds lost 19%...

ECONOMICS OVERVIEW Gambling on growth.
February 19, 2010... Byline: Claire Bisseker ECONOMICS OVERVIEW. Gambling on growth Despite a dramatic deterioration in SA's fiscal fortunes, finance minister Pravin Gordhan's first budget holds a steady course WHAT IT MEANS: Economic weaknesses faced head-on....

SA-MIDDLE EAST TRADE. Alternative to the West.
February 12, 2010... Byline: Razina Munshi SA-MIDDLE EAST TRADE Alternative to the West To pursue trade and investment opportunities with countries in the Middle East, a 30-member SA business delegation will travel to the annual World Islamic Economic Forum...