Financial Mail articles from January 2012

Financial Mail archives from January 2012

MTN. After the reward, the risk.
January 27, 2012... Byline: Larry Claasen MTN After the reward, the risk There is worry over the potential consequences of US oil sanctions on Iran MTN Group's storybook run is coming to an end. The mobile operator has had 10 years of growth but its prospects...

ABSA. Still hedging its bets.
January 27, 2012... Byline: Maarten Mittner ABSA Still hedging its bets Absa's share price has risen by nearly 10% over the past six months. Though this is positive, it might diminish the prospects for further growth, as the share could be fully valued. The...

CRICKET. Fighting for patronage.
January 27, 2012... Byline: David Williams CRICKET Fighting for patronage Where does the money come from, and who has the power over distributing it? That is the core question in the investigation into how cricket is run in SA. To apply the normal corporate...

DID YOU HEAR?
January 27, 2012... It seems anyone can be a doctor in SA for the right price. Last week the Health Professions Council of SA was humiliated after it had to publicly confirm that Dr Nyunyi Wambuyi Katumba managed to falsely practise as a specialist neurosurgeon for...

YOU COULD WIN - DID YOU HEAR?
January 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...

The toll foreseen.
January 27, 2012... Byline: NAZMEERA MOOLA The toll foreseen Almost 200 years ago, the French economic journalist Frederic Bastiat wrote: There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible...

Gordhan cannot do it on his own.
January 27, 2012... Gordhan cannot do it on his own We have become so inured to corruption in government that the intervention by national treasury in the Limpopo province seems like just another news item. It may not be surprising, then but it is still shocking....

It's too early to be optimistic.
January 27, 2012... It's too early to be optimistic Risk aversion in financial markets has eased in recent weeks. The rand, like many other emerging market currencies, has firmed against a weakening US dollar and a fragile euro, and share prices have risen sharply...

Foreign failures.
January 27, 2012... Byline: Barney Mthombothi Foreign failures President Jacob Zuma was in New York a few weeks ago to preside over SA assuming the presidency of the UN Security Council. It was supposed to be a high-water mark for the country's foreign policy....

EXECUTIVE MOVES.
January 27, 2012... Coenraad Bezuidenhout has joined Manufacturing Circle as an executive director. Bezuidenhout was previously executive director of economic policy at Business Unity SA. Jeffrey Hedberg has resigned as chief operating officer of Altech to pursue...

How to clean up SA.
January 27, 2012... Byline: DEON ROSSOUW How to clean up SA The central government's intervention in Limpopo to stop the rot in the province once more exposed the extent of corruption and incompetence in the public service. As the central government spills the...

Saving the Berry.
January 27, 2012... Byline: Duncan McLeod Saving the Berry Looking around SA, it's hard to believe BlackBerry maker Research in Motion (RIM) is in trouble. The BlackBerry remains South Africans' smartphone of choice but in developed markets consumers are...

Another Week.
January 27, 2012... Another Week AFRICA Just over 50% of the 158 investors polled by Invest AD and the Economist Intelligence Unit agree that Africa will offer the best overall prospects for investment growth in the next decade. Nigeria's consumer inflation edged...

FM FOX.
January 27, 2012... Newly elected speaker of the Egyptian parliament, Saad al-Katatni, of the Muslim Brotherhood, acknowledges the applause during the first Egyptian parliament session after the ousting of former president Hosni Mubarak a year ago. A worker secures...

COMINGS & GOINGS.
January 27, 2012... COMINGS & GOINGS Gareth Mostyn: De Beers SA has appointed Mostyn as CFO. He will report to De Beers Group CEO Philippe Mellier and join the De Beers SA board. He is a CA and former Anglo American head of corporate finance. Alan...

Capital & Counties Properties
January 27, 2012... Byline: Joan Muller If it's income you're after then Capital & Counties is not necessarily for you. Though the central London-focused arm of former Liberty International pays out a small rental stream with a dividend yield around 1%, the...

Capital Shopping Centres
January 27, 2012... Byline: Joan Muller The UK's single biggest mall owner (previously Liberty International) remains a solid rand-hedge choice for those with a longer-term investment horizon. But don't expect the stock to shoot the lights out over the next 12...

Local not so lekker.
January 27, 2012... Byline: Joan Muller LISTED PROPERTY Local not so lekker. Global property stocks now offer better buying opportunities than their SA counterparts, prompting local investors to up their exposure to offshore real estate. looks at where the...

Growthpoint Properties Australia.
January 27, 2012... Byline: Joan Muller Though it's not listed on the JSE, we have included the Australian Stock Exchange-listed property counter in our offshore property picks because of its direct ties with JSE-listed Growthpoint Properties. The latter is SA's...

MAS Plc.(Company overview)
January 27, 2012... Byline: Joan Muller With a market cap still below R500m, little-known AltX-listed MAS Plc, a Western European property play with a primary listing on the Luxembourg Stock Exchange, is well suited to smaller retail investors. The stock boasts...

New Europe Property Investments.
January 27, 2012... Byline: Joan Muller While most local property players followed the more conventional route offshore via the UK, Western Europe and Australia over the past 2-3 years, the Resilient Group, founded by property entrepreneurs Des de Beer, Jeff...

Redefine International.
January 27, 2012... Byline: Joan Muller The share price of the offshore arm of SA-based Redefine Properties has taken a beating in recent months. Some investors dumped the stock after the merger with London Stock Exchange-listed Wichford in August last year. The...

OIL. Greasing political wheels.
January 27, 2012... Byline: Lise Pretorius OIL Greasing political wheels The problem with being reliant on crude oil imports is that oil-producing countries tend to be synonymous with political risk, leaving net importers in a precarious position when it comes...

PARKING FEES. The reason for the pain.
January 27, 2012... Byline: Lindo Xulu PARKING FEES The reason for the pain The logic behind charging for parking is twofold. Firstly, it's a way for management to try to recoup some of the capital investment. Secondly, it's a means of access control ERWIN RODE...

RENEWABLE ENERGY. Harvesting sunshine.
January 27, 2012... Byline: Lise Pretorius RENEWABLE ENERGY Harvesting sunshine Irish entrepreneur Paschal Phelan moved to Cape Town 12 years ago. He had dreams of owning a vineyard in the Western Cape, but instead acquired one of Cape Town's best-performing...

TEXTILE INDUSTRY. Big jumper is wool.
January 27, 2012... Byline: Shannon Sherry TEXTILE INDUSTRY Big jumper is wool SA's textile industries are experiencing contrasting fortunes, with wool prices at record levels and cotton down substantially from its highs of 10 months ago. Mohair, of which SA...

CORRECTION.(Correction notice)
January 27, 2012... CORRECTION In last week's FM (Fox January 20) we reported that Mamepe Capital was backed by former BoE clients. It was in fact backed by several clients.

Interview - Simon Russell of Accenture. Banks post-Basel. QUESTIONS & ANSWERS.
January 27, 2012... Byline: Maarten Mittner QUESTIONS & ANSWERS Banks post-Basel Banks' capital requirements are to be increased next month under Basel 3. Simon Russell of Accenture discusses the implications with Do you expect the capital requirement to be...

COAL LOGISTICS. Slow train still coming.
January 27, 2012... Byline: Charlotte Mathews COAL LOGISTICS Slow train still coming New investments in coal logistics have been announced in the past few weeks, raising hopes that the bottleneck in Southern Africa's transport infrastructure which is strangling...

FURTHER EDUCATION. Shaky foundations.
January 27, 2012... Byline: Claire Bisseker FURTHER EDUCATION Shaky foundations SA's further education network is failing to meet the country's demand for vocational skills WHAT IT MEANS: The FET throughput rate just 4% in 2009 The aim is to enrol 4m people by...

RATINGS. Warning of slippery slope.
January 27, 2012... Byline: Claire Bisseker RATINGS Warning of slippery slope In a week in which ratings agencies slashed national credit ratings across several European countries, SA was stung too, suffering the ignominy of a credit outlook downgrade from...

LOCAL BUSINESS TAX. Down the pothole?
January 27, 2012... Byline: Ruan Jooste LOCAL BUSINESS TAX Down the pothole? Industry players and other stakeholders are up in arms about plans by the SA Local Government Association (Salga) to request the introduction of a local business tax in all...

101 - What is the Stop Online Piracy Act (Sopa) and the Protect IP Act (Pipa)?
January 27, 2012... Byline: Larry Claasen What is the Stop Online Piracy Act (Sopa) and the Protect IP Act (Pipa)? They are proposed US laws aimed at stemming the global theft of intellectual property. Backed by the movie and music industries as well as drug and...

ACCOUNTING STANDARDS. New revenue rules.
January 27, 2012... Byline: Stafford Thomas ACCOUNTING STANDARDS New revenue rules Companies worldwide will soon be confronted by changes to revenue recognition accounting standards. It is a change 60% of SA companies quizzed by accounting firm Grant Thornton...

JOHN DANIEL. Scratching for cash.
January 27, 2012... Byline: Marc Hasenfuss JOHN DANIEL Scratching for cash Desperate times call for desperate measures. And things can really not be more desperate for a company than having to forgo cash payments to its directors, and offering viciously...

Taking a shine to Avusa.
January 27, 2012... Byline: Marc Hasenfuss DEAL OF THE WEEK Taking a shine to Avusa Andrew Bonamour CEO Blackstar THE LOWDOWN: Mvela could become a single-strategy company Blackstar is likely to take a direct tilt at Avusa next It's probably reasonable to expect...

MEDICAL AID SCHEMES. A trustee's worth.
January 27, 2012... Byline: Xolile Bhengu MEDICAL AID SCHEMES A trustee's worth WHAT IT MEANS: Ex-trustee's golden handshake questioned CMS fears it sets a bad precedent The Council for Medical Schemes (CMS) wants Liberty Medical Scheme (LMS) to recover a R1,6m...

GIMME. Free websites for SMEs.
January 27, 2012... Byline: Matiba Mutheiwana GIMME Free websites for SMEs Look around you Google is taking over our information-driven world, one service at a time. Last week the company, together with others, launched Woza Online, a website programme that...

Lottery in numbers.
January 27, 2012... Byline: Roxana Gorecki Lottery in numbers 2000 was the year the Lotto was launched, at Yeye Butchery in Langa, by President Thabo Mbeki. 5 types of lottery make up the National Lottery run by the National Lottery Board Lotto, Lotto Plus,...

Excalibur still sweet on 1time.
January 27, 2012... Byline: Zweli Mokgata Excalibur still sweet on 1time Excalibur Aerospace continues to buy shares in 1time airlines, despite the collapse of a deal between the two companies. 1time Holdings CEO Rodney James says the deal was not being done...

PROFILE. Cape of challenges.
January 27, 2012... Byline: Larry Claasen PROFILE Cape of challenges Grant Pascoe, the Mitchells Plain DA councillor responsible for tourism, events & marketing for the City of Cape Town, knows very well that the city still has a long way to go in overcoming...

QUOTE OF THE WEEK - CHRISTINE LAGARDE.(Quotation)
January 27, 2012... QUOTE OF THE WEEK This is a defining moment. It is not about saving any one country or region. It is about saving the world from a downward economic spiral. It is about avoiding a 1930s moment, in which inaction, insularity and rigid ideology...

RED MEAT EXPORTS. Yet to walk the talk.
January 27, 2012... Byline: Shannon Sherry RED MEAT EXPORTS Yet to walk the talk The agriculture department and SA's red meat industry have discussed a plan to end the ban on exports that has been in force since early last year because of an outbreak of...

Storm warning.
January 27, 2012... Byline: Stafford Thomas Storm warning A storm so severe that it causes US$1trillion or more in damage may seem the stuff of Hollywood fiction. But damage on this scale is very much potential science fact, warn insurance giants Allianz and...

WHERE ARE THEY NOW? Hard act to follow.
January 27, 2012... Byline: Larry Claasen WHERE ARE THEY NOW? Hard act to follow Former Ellerines MD Peter Squires admits he misses the excitement of running a large company. Squires had the difficult task of taking over from the legendary founders of the...

BOOK OF THE WEEK. Source of conflict.
January 27, 2012... Byline: David Furlonger BOOK OF THE WEEK Source of conflict EXPLORERS OF THE NILE: The Triumph and Tragedy of a Great Victorian Adventure By Tim Jeal 442 pages Faber & Faber R292 Was Richard Burton, praised by historians for the past 160...

CIMEMA. Digging the grave.
January 27, 2012... Byline: Peter Wilhelm CINEMA Digging the grave Everyone is a victim as a huge financial institution slides into bankruptcy Margin Call Written and directed by JC Chandor Lead roles: Stanley Tucci Jeremy Irons Kevin Spacey Paul Bettany Zachary...

Emily Moon River Lodge. FOOD FOR THOUGHT. Never enough.
January 27, 2012... Byline: Justice Malala FOOD FOR THOUGHT Never enough JUSTICE MALALA ****1/2 Emily's Restaurant Emily Moon River Lodge, Rietvlei Road, Plettenberg Bay Tel: (044) 533 2982 *****Pravin Gordhan ****Excellent ***Good ** Poor *Limpopo The province...

EVENTS PLANNING. Making dreams come true.
January 27, 2012... Byline: Hilary Prendini Toffoli EVENTS PLANNING Making dreams come true talks to event organisers those behind-the-scenes dynamos who come up with the genius ideas for your bash and take all the stress ON THE NET Dreamcatcher:...

7 QUESTIONS FOR ... Melanie Millin-Moore, international executive PR consultant.
January 27, 2012... Byline: Hilary Prendini Toffoli Melanie Millin-Moore, international executive PR consultant FM: Do you see event organising as a vital part of PR? Millin-Moore: Not necessarily. There are good event companies which specialise in events only...

Interview - Louis von Zeuner, deputy group CEO of Absa. WONDERFUL WEEKEND. When the heat is off.
January 27, 2012... Byline: Maarten Mittner WONDERFUL WEEKEND When the heat is off Louis von Zeuner, deputy group CEO of Absa, tells why he is crazy about dogs but useless around the house over weekends Friday evenings start the weekend and, if there is not a...

Let the people decide.
January 27, 2012... Byline: Patricia Glyn Let the people decide In response to Zoe Human's letter Please lose the word ( January 20), I would like to point out that the reason why I refer to the Kruipers as Bushmen is that is the way they would like to be known....

BRANDED ENTERTAINMENT. Spot the label.
January 27, 2012... Byline: Zweli Mokgata BRANDED ENTERTAINMENT Spot the label As technology makes it possible for viewers to bypass television commercials, advertisers are turning to branded entertainment to recapture their attention. The personal video...

SOCIAL MEDIA. Move with the times.
January 27, 2012... Byline: Zweli Mokgata SOCIAL MEDIA Move with the times The rapid growth of social media in SA should be embraced by communications experts, says Stuart Anderson, MD of the Creative Engagement Group. The London-based company is a recently...

NEW RADIO STATIONS. Making waves.
January 27, 2012... Byline: Zweli Mokgata NEW RADIO STATIONS. Making waves The holders of SA's new radio station licences have their plans in place and hope to be up and running around midyear WHAT IT MEANS New radio stations bring competition Operators work...

9 QUESTIONS FOR ... Andre Parker, nonexecutive chairman-elect at Tiger Brands.
January 27, 2012... Byline: Stafford Thomas Andre Parker, nonexecutive chairman-elect at Tiger Brands You are coming in as chairman at a time when fast-moving consumer goods sales are weak and food inflation is high. It looks as though Tiger Brands faces a tough...

ALTX. Quality over quantity.
January 27, 2012... Byline: Larry Claasen ALTX Quality over quantity The AltX will not become a modern version of the venture and development capital boards NOAH GREENHILL The AltX is facing a difficult future. The trickle of companies moving from the JSE's...

BIDVEST. A bunch of keys.
January 27, 2012... Byline: Marc Hasenfuss BIDVEST A bunch of keys Industrial conglomerate Bidvest's investment arm, BB Investment Co, now holds listed investments worth nearly R3bn, making it a larger entity than a good number of specialist investment vehicles...

INFLATION-LINKED BONDS. Cornerstone of a portfolio.
January 27, 2012... Byline: Stafford Thomas INFLATION-LINKED BONDS Cornerstone of a portfolio After three years of falling inflation, investors were hit last year by the reality that SA is a high-inflation country. From a low of 3,2% in September 2010, inflation...

EXXARO. Rumble in the jungle.
January 27, 2012... Byline: Charlotte Mathews EXXARO Rumble in the jungle Speculators began circling after Exxaro's bid for African Iron late last week in the hope it will turn into a vulture feast. The first two hedge funds to dive in were Centaurus Capital...

PENSION FUNDS. Offshore holdings kick in.
January 27, 2012... Byline: Stephen Cranston PENSION FUNDS Offshore holdings kick in In a year in which the JSE all share index gave a paltry 2,6% return, most pension fund members got considerably better returns. In the Alexander Forbes Global Large Manager...

Market watch.
January 27, 2012... Byline: Andrew McNulty Market watch The January effect is a familiar phenomenon. It often starts in December or even in the second half of November. The gyms sign up enthusiastic new members, and in financial markets, share prices may rise...

MIRANDA MINERAL HOLDINGS. Strapped for cash.
January 27, 2012... Byline: Charlotte Mathews MIRANDA MINERAL HOLDINGS Strapped for cash A new shareholder, Incubex, has come to the rescue of Miranda Mineral Holdings, after it was paralysed for months by disputes and a shortage of funds. Miranda said last...

NET ASSET VALUE. Beware the bargains.
January 27, 2012... Byline: Marc Hasenfuss NET ASSET VALUE Beware the bargains NAV could indicate value, but investors should also look at other measures like cash, debt and return on equity WHAT IT MEANS: Danger can lurk in deep discounts NAV is only one of the...

REINET INVESTMENTS. Rolling its own.
January 27, 2012... Byline: Marc Hasenfuss REINET INVESTMENTS Rolling its own The market appears to be turning away from Reinet Investments despite its value growth in the last quarter of 2011. At the time of writing, Reinet's discount to its portfolio of...

Investor's Notebook.
January 27, 2012... Byline: Stephen Cranston Investor's Notebook Right now the entire financial services industry is in limbo, waiting for the details of retirement fund reform policies. This was one of national treasury's anchor projects when it was announced...

Instruction from role models.
January 27, 2012... Byline: Graeme Bloch Instruction from role models Sandile Sangqu of Xstrata calls for business to be more involved in education (On My Mind January 20). I am all in favour of that. But wait: bankers to teach ethics, given the world economic...

COPPER. Lack of supply.
January 27, 2012... COPPER Lack of supply After posting sharp declines at the end of last year, the copper price has been resilient in recent weeks and is already up 10% this month. Bullish fundamentals on the back of positive Chinese data and falling stockpiles of...

Diamond: Net1. Dog: Sanral. DIAMONDS & DOGS.
January 27, 2012... Byline: Jamie Carr DIAMONDS & DOGS Diamond Net1 Net1's headquarters must have been echoing with the popping of champagne corks interspersed with sighs of relief when the announcement finally came through that it had won the tender to...

ECONOMIC INDICATORS.
January 27, 2012... 0,6 percent SA's leading indicator of economic activity rose by an encouraging 0,6% on a monthly basis in November, from growth of 0,2% in October, according to the SA Reserve Bank. However, only six of the 11 components measured rose. These are...

GOLD. Trading higher.
January 27, 2012... GOLD Trading higher Gold traded higher this week, bringing the past month's gains to 7%. A weaker dollar boosted demand for gold as dollar-denominated commodities became cheaper for holders of other currencies. Data has shown a 4% rise in net...

OIL. Risk premium.
January 27, 2012... OIL Risk premium The EU, which accounted for about 45 000 bbl/day of Iranian oil supplies in the first half of 2011, announced a phased-in embargo on Iran's oil output this week. The ban is expected to be implemented by July and Saudi Arabia...

TECHNICAL ANALYSIS. Resources drive?
January 27, 2012... Byline: Garth Mackenzie Resources drive? Resources shares have underperformed the JSE all share index (Alsi) consistently over the past four years, and that trend of underperformance remains intact for now. If one takes the JSE resources 10...

STOCK TAKE.
January 27, 2012... Byline: Larry Claasen STOCK TAKE ELLIES HOLDINGS 1. Cash positive + 2. Revenue up + 3. Tradability + 4. Dividend paid - 5. Profitable + The good times seem to be back at Ellies. The consumer electronics group saw revenue rise 10,5% to R721,2m...

Unwelcome at Telkom.
January 27, 2012... Byline: Grant Eckersley Unwelcome at Telkom I refer to Nazmeera Moola's column (Economic Viewpoint January 20). I have to agree that Telkom must be the leading contender for the worst customer service in history. I recently tried to arrange a...

WINNERS & LOSERS.
January 27, 2012... WINNERS & LOSERS WINNER John Stumpf: Wells Fargo's CEO posted record full-year earnings on revenue of US$22,7bn in Q4. Net income for the group was $2,8bn or 8c/share. Analysts expected losses of 1c/share on revenue of $21,97bn. LOSER...

CAR BOOT SALES. THE PLACE TO BE OR NOT TO BE. Pass on the pressies.
January 27, 2012... Byline: Roxana Gorecki THE PLACE TO BE OR NOT TO BE Pass on the pressies CAR-BOOT SALES Where: In most cities Mood: Vintage, organic, natural, raw Still wondering what to do with those unwanted Christmas gifts? The garish ties, useful...

Understanding the patrons.
January 27, 2012... Byline: Meg de Jong PROFILING Understanding the patrons In an effort to better understand its patrons, the Casino Association of SA (Casa) commissioned survey-based research company Ipsos Markinor to conduct research at 18 casinos across SA...

REGULATION/ Dealing with changes.
January 27, 2012... Byline: Meg de Jong REGULATION Dealing with changes One of the most significant developments to affect the casino industry in the past year has been a withholding tax that finance minister Pravin Gordhan proposed in his 2011 budget speech....

Playing on.
January 27, 2012... Byline: Meg de Jong Playing on Though it has not been an easy year, SA's casino industry remains stable WHAT IT MEANS: Gambling activities have doubled since 2003/2004 Gross gaming revenue now sits at R17,14bn Despite world economies...

Profiling the actors.
January 27, 2012... Byline: Meg de Jong Profiling the actors Insight into some of the Casa member casinos operating in Southern Africa WHAT IT MEANS: Tsogo Group operates 14 casinos in SA Sun International operates 22 casinos in Southern Africa The Casino...

Sensitive to social ills.
January 27, 2012... Byline: Meg de Jong SOCIAL RESPONSIBILITY Sensitive to social ills Corporate social investment (CSI) remains a core priority for the Casino Association of SA (Casa). A wide array of initiatives has been supported by Casa members in areas such...

RESPONSIBLE GAMBLING. Programme a huge success.
January 27, 2012... Byline: Meg de Jong RESPONSIBLE GAMBLING Programme a huge success As far as legal gambling is concerned, research shows that among adults, nationwide, problem gambling has decreased. This is according to Prof Peter Collins, the executive...

Responsible gambling facts.
January 27, 2012... Byline: Meg de Jong Responsible gambling facts As part of the mandate to address any social problems that accompanied the legalisation of gambling in SA in 1996, the National Responsible Gambling Programme (NRGP) operates a 24/7 problem...