Financial Mail articles from June 2010

Financial Mail archives from June 2010

Did you hear?
June 25, 2010... A man has been drinking at a bar for hours when he mentions something about his girlfriend being in the car. The bartender, concerned because it is so cold, goes outside to check on her. When he looks inside the car, he sees the man's friend,...

Did you hear? Prizewinners.
June 25, 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...

Governments can only do so much.
June 25, 2010... Governments can only do so much When UK chancellor George Osborne announced his emergency budget this week, he described it as inevitable and tough, but fair. That may be rather understated. Commentators have called this budget the harshest that...

Some jobs are less equal than others.
June 25, 2010... Some jobs are less equal than others In the February budget, finance minister Pravin Gordhan warned that high wages were pricing young people out of the job market. But his proposed remedy a wage subsidy for first-time entrants into the labour...

The cause is not lost.
June 25, 2010... Byline: Barney Mthombothi The cause is not lost It's become a bit difficult, almost impossible, to talk about anything else other than the football. Or, rather, it's difficult to be heard or to raise any other subject amid the din and...

CINEMA. Mirror, mirror. The Imaginarium of Dr Parnassus.
June 25, 2010... Byline: Peter Wilhelm CINEMA Mirror, mirror The seduction of souls through a mirror Pythonesque-style The Imaginarium of Dr Parnassus Directed by Terry Gilliam. Lead roles: Heath Ledger; Christopher Plummer; Tom Waits; Lily Cole; Andrew...

Household debt trap.
June 25, 2010... Byline: ANNABEL BISHOP Household debt trap The failure to use a broad analytical approach in tackling the credit crisis caused the sovereign debt crisis and is now just as likely to cause a household debt crisis. In April I wrote: The credit...

Where to, Telkom?
June 25, 2010... Byline: DUNCAN McLEOD Where to, Telkom? Telkom is a fixed-line operator with ambitions to get into mobile telecoms. Analysts aren't sure it should be investing in a mature cellphone market. Do they have a point? Should Telkom be sticking to...

BLUE FINANCIAL Still got the blues.
June 25, 2010... Byline: Larry Claasen BLUE FINANCIAL Still got the blues There will be no quick recovery at Blue Financial Services. Mayibuye Group, which is investing R163m and providing loans of R300m to the pan-African microlender, expects to see a...

COLLIERS SA HOLDINGS.
June 25, 2010... Byline: Charlotte Mathews COLLIERS SA HOLDINGS REAL ESTATE HOLDING Price: 60c Yr Feb T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R33m 2010 66,4 -19,6 -5,2 PE: -11,54 2009 386,4 16,3 -13,7 Sector: 7,87 t s -83% n/a n/a Comparisons are difficult...

Wine industry: the economic case.
June 25, 2010... Byline: Stafford Thomas Wine industry: the economic case More than 350 years in the making, SA's wine industry contributes about R50bn in capital assets alone to the economy, both directly and through linkages to sectors that include tourism...

LIQUOR TRENDS. Lots to whine about.
June 25, 2010... Byline: Stafford Thomas LIQUOR TRENDS Lots to whine about SA is up there among the world's giants, ranking as the seventh-largest wine producer and eighth-largest exporter. But as wine drinkers we dismally lag the major consuming countries....

TRANSFORMATION. A slow blend.
June 25, 2010... Byline: Sasha Planting TRANSFORMATION A slow blend Goodwill alone is changing the colour of the SA wine industry WHAT IT MEANS. Transformation in wine industry has been slow. Only 2,26% of SA vineyards black-owned A career in wine is...

FOREIGN INVESTMENT. Tipping the scales.
June 25, 2010... Byline: Sasha Planting FOREIGN INVESTMENT Tipping the scales The winelands have become a veritable UN in the 16 years since SA's first democratic elections and with the development of an export market for its wines. Everyone from Italians...

WINE INDUSTRY. Down to a drop.
June 25, 2010... Byline: Stafford Thomas WINE INDUSTRY Down to a drop Despite SA being the world's seventh-largest producer of wines, with a fair chunk of the European and other markets, only 3%-5% of SA farmers are making a profit. looks at why investments...

Economic Indicators.
June 25, 2010... 125 million tons Global steel production rose by 29,1% y/y in May to 124,8Mt, compared with 96Mt produced previously. China dominated the steel market and produced more than 56Mt during May, which was 20,7% more than in May 2009. 1,3 points SA's...

Retail sales.
June 25, 2010... Byline: Razina Munshi Retail sales SA's retail sales rose for the fourth consecutive month in April, when they grew by 3,2% y/y, following growth of 2,7% previously. Statistics SA revised its data back to January 2008 to reflect the lower...

URBAN DEVELOPMENT. Space awaiting meaning.
June 25, 2010... Byline: Kate Thompson URBAN DEVELOPMENT Space awaiting meaning Good intentions and a large investment have not yet brought life to this area WHAT IT MEANS Kliptown's dramatic square cost R400m Residents say it is an expensive eyesore In my...

AGRICULTURE. A shrinking asset.
June 25, 2010... Byline: Shannon Sherry AGRICULTURE A shrinking asset SA needs to drastically and urgently adapt its farming practices to ensure food security for current and future generations, says a new World Wildlife Fund (WWF) report. Overwhelming...

Sea Point old boys excelled.
June 25, 2010... Byline: Gerald Mallinick Sea Point old boys excelled Your most interesting article, depicting the football career of Eddie Firmani (FM Fox June 11), brought back memories of the exceptionally talented group of sportsmen who were his...

Cut up over credit card.
June 25, 2010... Byline: Asif Jhatham Cut up over credit card First National Bank's 2010 pricing review shows an increase of 22,75% on the fee for the platinum credit card. I queried this hefty increase with the bank and was given a very brief response that...

BUSINESS IN AFRICA. A whole new scramble.
June 25, 2010... Byline: Sharda Naidoo BUSINESS IN AFRICA A whole new scramble Africa's consumer revolution is bound to attract multinationals WHAT IT MEANS. There are US$2,6trillion worth of opportunities. But skills are lacking After centuries of...

CONSUMER CONFIDENCE. Feeling good in tight belt.
June 25, 2010... Byline: Claire Bisseker CONSUMER CONFIDENCE Feeling good in tight belt SA's consumers remain remarkably confident, and suffered less during the recession than was initially thought. This would appear to be good news for SA's nascent...

INDUSTRIAL POLICY. Make jobs making things.
June 25, 2010... Byline: Thebe Mabanga INDUSTRIAL POLICY Make jobs making things Parliament has given qualified support to government's Industrial Policy Action Plan (Ipap 2), but has been unable to settle the critical question of how it will be funded. Ipap...

ALLIANCE POLITICS. We can, but we won't.
June 25, 2010... Byline: Thebe Mabanga ALLIANCE POLITICS We can, but we won't The ANC's attempt to diffuse the row between communications minister Siphiwe Nyanda and Cosatu general secretary Zwelinzima Vavi shows the party's continued emphasis on tripartite...

TEACHERS' SALARIES. Two schools of thought.
June 25, 2010... Byline: Carol Paton TEACHERS' SALARIES Two schools of thought Are SA teachers overpaid? A chief executive of a state-owned corporation earns R5m/year; a school principal about R300000. But since the large pay hikes for teachers in 2008, they...

101. The Great Moderation.
June 25, 2010... Byline: Claire Bisseker What was the Great Moderation? The period of the past two decades, when there was a big decline in global macroeconomic volatility. It coincided with good growth rates in major economies and moderate inflation....

Another Week.
June 25, 2010... Another Week AT HOME The Reserve Bank's composite lead indicator was 128,2 in April, up on March's 126,9, showing the business cycle is likely to still be in an upward phase in October, though the pace of index increase has slowed, suggesting...

COMINGS & GOINGS.
June 25, 2010... COMINGS & GOINGS Juan Manuel Santos. Colombia's former defence minister won 69% of the votes in last week's election in a record turnout for the presidential polls more than his path-breaking reformist predecessor Alvaro Uribe. Ajen Sita....

GIMME. Small and smart.
June 25, 2010... Byline: Robert Quarshie GIMME Small and smart The battle for the smallest and sexiest laptop has intensified again with Sony's almost pocket-sized, new Vaio VPC-P115 lifestyle PC. Weighing 600g, this female wallet-sized laptop (almost half...

GLOBAL RECOVERY. Support still strong.
June 25, 2010... Byline: Claire Bisseker GLOBAL RECOVERY Support still strong The question most exercising investors right now is to what extent Europe's fiscal woes are likely to put a brake on the global recovery. The graph shows the International...

EMPLOYMENT. Test case for decent work.
June 25, 2010... Byline: Claire Bisseker EMPLOYMENT Test case for decent work WHAT IT MEANS 43% of clothing firms are noncompliant Well over 4000 jobs are at stake Clothing manufacturers and unions are getting cold feet over a planned crackdown on clothing...

THE PLACE TO BE OR NOT TO BE. High on speed.
June 25, 2010... Byline: Sharda Naidoo THE PLACE TO BE OR NOT TO BE High on speed The platform was full of excitement as the countdown began not for the kick-off of the World Cup but, equally momentous, the opening of the Gautrain Sandton station. ...

PROFILE. Roads to success.
June 25, 2010... Byline: Thebe Mabanga PROFILE Roads to success The man who has made a small but significant contribution to the successful staging of the soccer World Cup has not been in the country to witness the effect of his years of careful planning on...

QUESTIONS & ANSWERS. Security and change.
June 25, 2010... Byline: Shannon Sherry QUESTIONS & ANSWERS Security and change speaks to deputy agriculture minister and Freedom Front Plus leader Pieter Mulder about key issues in agriculture and land reform There seems to be lots of mistrust about what...

QUOTE OF THE WEEK.(Quotation)
June 25, 2010... Byline: Angela Merkel QUOTE OF THE WEEK You do not have to continue with the same stimulus programmes when you have continuing economic recovery. If we do not achieve sustainable growth but instead generate, once again, inflated growth, we...

REAL PEOPLE DOING UNREAL THINGS. Head for hard hats.
June 25, 2010... Byline: Jacqui Pile REAL PEOPLE DOING UNREAL THINGS Head for hard hats Alfred Baloyi. Makarapa inventor THE UNREALITY CHECK Sold his first makarapa in 1979 for R7. Has a studio employing 50 people making 100 makarapas a day. His...

SABC. Starting all over again.
June 25, 2010... Byline: Carol Paton SABC Starting all over again The SABC board has gone back to the drawing board to appoint the corporation's head of news, a decision backed by minister of communications Siphiwe Nyanda. Board chairman Ben Ngubane who...

PUBLIC ENTERPRISES. Too many cooks.
June 25, 2010... Byline: Carol Paton PUBLIC ENTERPRISES Too many cooks Fears that the review of state-owned enterprises by public enterprises minister Barbara Hogan and finance minister Pravin Gordhan was halted to suppress their views are unfounded, say...

WHERE ARE THEY NOW? Energy man renewed.
June 25, 2010... Byline: Charlotte Mathews WHERE ARE THEY NOW? Energy man renewed Greenies should be delighted. With former Eskom CEO Thulani Gcabashe now heading his own business specialising in renewable energy sources, alternatives to coal-fired power in...

Winners & Losers.
June 25, 2010... WINNERS & LOSERS WINNER Hu Jintao. China's leader deftly undercut critics ahead of this weekend's G20 summit in Toronto with the central bank's announcement that the yuan's flexibility against the dollar would increase. LOSER Dipuo...

THE UGLY DUCKLING. IDECO GROUP.
June 25, 2010... Byline: Larry Claasen THE UGLY DUCKLING IDECO GROUP 1. Cash positive - 2. Revenue up + 3. Share ignored - 4. Dividend paid - 5. Profitable + The tide is turning for the security devices group. Revenue rose 42% to R57m and it turned an...

LABAT AFRICA. No turning back.
June 25, 2010... Byline: Larry Claasen LABAT AFRICA No turning back Labat Africa's days on the JSE are numbered. Its chairman, former rugby boss Brian van Rooyen, can't say for certain when (or even if) the reverse listing of diversified investment group...

SA needs a 'Zuma moment'.
June 25, 2010... Byline: Andrew Majiga SA needs a 'Zuma moment' As I boarded a bus in a deprived area of London, I reflected on the plight of the poor here. It made me realise a nation should not be judged on the size of its GDP, but by the opportunities it...

GOLF. Winners are stayers.
June 25, 2010... Byline: Jed Martin GOLF Winners are stayers It can pay to be patient in professional golf, finds Playing professional golf is comparable to running the Comrades marathon. It's a long race, with many ups and downs, where you have to pace...

FOOD FOR THOUGHT. French kiss-off.
June 25, 2010... Byline: Justice Malala FOOD FOR THOUGHT French kiss-off JUSTICE MALALA ***1/2 Rhapsody's Polokwane Shop 16, Platinum Park Centre, Pomelo Road 1, Bendor, Polokwane. Tel: (015) 297- 1296 ***** Football!; **** South Africa!; *** Good; ** Julius...

MOTORING. Getting high on Everest.
June 25, 2010... Byline: David Furlonger MOTORING Getting high on Everest WHAT IT COSTS: 4x2 XLT: R332620; 4x4 XLT: R373420; 4x4 LTD: R391780 Here's a question for the guys. Angelina Jolie may be a sexual fantasy figure but would you want to be married to...

AT LUNCH WITH THE FM. Capital with a conscience.
June 25, 2010... Byline: Claire Bisseker AT LUNCH WITH THE FM Capital with a conscience joins Cida Empowerment Fund CEO Tracey Chiappini-Young at Voila, Cape Quarter, Cape Town HOW SHE CHILLS. Reading, swimming, cycling and travel Tracey Chiappini-Young...

CELEBRITY CHEF. Star isn't a four-letter word.
June 25, 2010... Byline: Jane Broughton CELEBRITY CHEF Star isn't a four-letter word It was a Sunday morning like any other, except I was on my way to breakfast with Gordon Ramsay. Universally reported to be argumentative and confrontational, Ramsay is as...

RUGBY. Secret's in the leadership.
June 25, 2010... Byline: David Williams RUGBY Secret's in the leadership It is better to play well and win, as the Springboks did against France (42-17), than to play badly and win, as they did against Italy on Saturday (29-13). But to play badly and lose, as...

BJM. Independent demise.
June 25, 2010... Byline: Stafford Thomas BJM Independent demise Succumbing to the lure of big money, Barnard Jacobs Mellet (BJM) is to become a unit of First National Bank (FNB), a move marking the demise of independent stockbroking firms in SA. It was a...

Crisis watch.
June 25, 2010... Byline: Andrew McNulty Crisis watch China, with its decisive stimulus package and quick return to strong growth, did much to rescue the world economy from the financial crisis and recession. The Chinese economy, and its influence on the...

DIAMONDS & DOGS.
June 25, 2010... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond Argent The week when the circus maximus came to town was never likely to be top of a CEO's list of preferred times to release a set of results that deserve a loud blast on...

DORBYL.
June 25, 2010... Byline: Razina Munshi DORBYL AUTO PARTS Price: R4,30 Yr Mar T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R146,5m 2010 -26,6 -279,6 PE: -1,95 2009 260,2 -32,4 -701,4 Sector: 12,61 t s n/a n/a n/a The automotive industry, and particularly the...

CURRENCY. Upside to euro downside.
June 25, 2010... Byline: Sasha Planting CURRENCY Upside to euro downside The euro sank to a four-year low against the dollar last week amid fears that Hungary, alongside Spain, Portugal and Italy, could suffer a Greek-style debt crisis. Economist Nouriel...

GOLD. A safe harbour.
June 25, 2010... GOLD A safe harbour The price of gold advanced to a new intraday high this week as investors flocked to the precious metal to protect their wealth from the ongoing turbulence in Europe and the growing uncertainty in the global economy. The price...

COMMODITIES. Tin is tight.
June 25, 2010... COMMODITIES Tin is tight The price of tin advanced earlier this week due to speculation that demand for raw materials will increase after China, the world's largest consumer of industrial metals, signalled an end to the Chinese yuan's fixed rate...

OIL. Chinese boost.
June 25, 2010... OIL Chinese boost The price of Brent crude oil jumped to a six-week high at the start of this week after China indicated that it may allow its exchange rate to move higher. This will make commodities priced in other currencies less expensive for...

FIRST URANIUM. Meeting commitments.
June 25, 2010... Byline: Charlotte Mathews FIRST URANIUM Meeting commitments First Uranium's C$1,4m write-off on a housing loan to former CEO Gordon Miller as part of his severance package in March will not go down well with investors whose shares fell below...

INVESTMENT REVIEW. Swimming upstream.
June 25, 2010... Byline: Stafford Thomas INVESTMENT REVIEW Swimming upstream Equity unit trust portfolios are all too often structured with one eye on their benchmark index and the other on their competitors' strategies. Not so with Investec Value Fund (INF),...

JSE. Gold's time.
June 25, 2010... Byline: Garth Mackenzie JSE Gold's time The JSE gold mining index is testing resistance at 2600. This is the level of a downtrend that's capped gains since the high of March 2009. The US dollar gold price is also challenging new highs above...

QUEENSGATE HOTELS.
June 25, 2010... Byline: Razina Munshi QUEENSGATE HOTELS HOTELS Price: Suspended 6m Feb T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R18,09m 2010 37,5 -329,9 -18,54 PE: n/a 2009 76,1 17,8 0,78 Sector: 32,55 t s -51% n/a n/a Queensgate asked the JSE to suspend...

REMGRO.
June 25, 2010... Byline: Sasha Planting REMGRO DIVERSIFIED INDUSTRIALS Price: R97,32 Yr Mar T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R46,9bn 2010 11,9 856 690,1 209 PE: 19,29 2009 11,5 800 671,5 190 Sector: 17,87 t s +3,4% +7% +2,8% +10% Results continue...

DIVIDEND YIELDS. An extra kick.
June 25, 2010... Byline: Andrew McNulty DIVIDEND YIELDS An extra kick Dividend and yields have scope to rise, presenting attractive opportunities for investors WHAT IT MEANS. The market dividend yield is thin. High-yield stocks can lift total returns...

9 Questions for Wale Tinubu, CEO of Oando Plc.
June 25, 2010... Byline: Charlotte Mathews Wale Tinubu, CEO of Oando Plc, on growth opportunities Why are you contemplating raising more money so soon after your successful US$142m rights issue? Our shareholders gave us the mandate to raise $1bn. Apart from...

SENTULA. Running out of excuses.
June 25, 2010... Byline: Charlotte Mathews SENTULA Running out of excuses One pearl winks amid the sea of troubles ranging from internal fraud to a global economic downturn that has sometimes threatened to engulf mining services group Sentula Mining in the...

STELLA VISTA.
June 25, 2010... Byline: Larry Claasen STELLA VISTA ELECTRONIC COMPONENTS & EQUIPMENT Price: 6c 6m Feb T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R12m 2010 18,5 -3,06 -2,17 PE: -2,59 2009 28,4 1,81 1,9 Sector: -6,23 t s -35% The soccer World Cup has not...

TELKOM. Placed on hold.
June 25, 2010... Byline: Larry Claasen TELKOM Placed on hold You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom. So goes an old joke in the telecommunications sector that pokes fun at the alleged conservative and...

Management got only 5%.
June 25, 2010... Byline: John Dludlu Management got only 5% Your reader, Mpumelelo Ncwadi, in his letter headlined Transnet boss a bad example (June 11) makes some misleading claims. He correctly points out that our unionised employees settled for a 7% wage...

Connecting the world.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong Connecting the world ICT development in SA is putting the country on a new level WHAT IT MEANS. Newly expanded broadband capacity is improving industry competitiveness Consumers suddenly find...

Cautious optimism.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong Cautious optimism Mining under pressure to improve systems WHAT IT MEANS. More stability expected in 2010/2011. Plans to make use of rail for transportation "The solution is to get the coal...

Still some way to go.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong Still some way to go The energy sector is not yet out of the woods WHAT IT MEANS. Funding challenges still plague Eskom. Plans to double capacity by 2026 Decisions we make now will affect us...

Falling behind the times.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong Falling behind the times Neglecting to modernise SA's fuel production infrastructure is hindering SA's motor and transport industries, as refineries are not geared to produce new kinds of fuel,...

ROADS. Journeying to development.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong ROADS Journeying to development SA's road network spans 600000km and transports millions of people as well as freight and goods. As Nazir Alli, CEO of the SA National Roads Agency Ltd (Sanral),...

TELECOM. A maturing market.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong TELECOM A maturing market The SA mobile communications market has also shown itself to be highly competitive and dynamic with a number of significant developments. Cell C is rolling out a high-speed...

WHAT IT MEANS.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong The speed's picking up Transport facilities gradually catching up to world standards WHAT IT MEANS. Challenges include ageing fixed assets as well as obsolete technology The plethora of sporting...

Prasa is set on promoting the use of rail transport. Here are some of the reasons the utility says SA should be pro-passenger rail:.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong Safer transportation Prasa is set on promoting the use of rail transport. Here are some of the reasons the utility says SA should be pro-passenger rail: Passenger rail is an efficient mass people...

WATER. Taking the plunge.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong WATER Taking the plunge SA's history of water conservation has not been particularly impressive to date. In an essentially arid country, this needs to change drastically if growth is to be achieved....

WATER TREATMENT. Driving innovation.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong WATER TREATMENT Driving innovation EThekwini Municipality's Water & Sanitation Unit identified green rivers as one of its priorities in its Strategic Business Plan for 2010. This came about due...

INVESTMENTS. Spotlight on offshore funds.
June 25, 2010... Byline: Samantha Du Chenne INVESTMENTS Spotlight on offshore funds The perception that offshore investment funds are not high up on SA Revenue Service (Sars) list of priorities no longer holds true. Sars, says Lance Roderick, director at...

PARTNERSHIPS. Focus on foreign investors.
June 25, 2010... Byline: Samantha Du Chenne PARTNERSHIPS Focus on foreign investors As a foreign investor in an SA fund, it's fair to expect a degree of certainty when it comes to matters such as the formation of partnerships and what this implies for...

A new era? The outdated concepts of regulation 28 need an overhaul.
June 25, 2010... Byline: Samantha Du Chenne A new era? The outdated concepts of regulation 28 need an overhaul WHAT IT MEANS. Better protection for pension fund holders. Hedge funds market to be affected hugely They'll all be competing for the same...

WHAT IT MEANS.
June 25, 2010... Byline: Tamara Oberholster and Meg de Jong Charged up Marking an admirable start to a much needed infrastructure overhaul WHAT IT MEANS. Power shortfall still a major issue for SA. Big water projects set to start this year In the period...

CSI. A skills base for the future.
June 25, 2010... Byline: Lance Harris CSI A skills base for the future Neotel is focusing its corporate social investment budget on building a base of telecommunications skills that the entire industry can draw on as well as on improving access to telecom...