Financial Mail articles from March 2010

Financial Mail archives from March 2010

AFRICAN ADVERTISING. Africa trumps Europe.
March 26, 2010... Byline: Matebello Motloung AFRICAN ADVERTISING Africa trumps Europe SA's biggest advertising agency, with one of the widest African networks, is gearing up to be the leading communications agency in Africa. Part of Ogilvy & Mather...

PALLINGHURST. Work in progress.
March 26, 2010... Byline: Charlotte Mathews PALLINGHURST Work in progress Brian Gilbertson doesn't give up. Though Pallinghurst Resources, the investment group he chairs, was defeated three years ago in its attempt to take over Australian manganese and...

THE JOBLESS YOUTH CRISIS 1. Timebomb.
March 26, 2010... Byline: Carol Paton THE JOBLESS YOUTH CRISIS 1 Time bomb SA's youth are a ticking bomb. As overused as this metaphor is, it is accurate. Youth unemployment cannot be solved on its own, no matter how well the economy performs. looks at how SA...

DID YOU HEAR?
March 26, 2010... During a visit to the mental asylum, a man asks the facility's director how one determines whether a patient should be institutionalised. Well, says the director, we fill up a bathtub, then we offer a teaspoon, a teacup and a bucket to the...

YOU COULD WIN.
March 26, 2010... YOU COULD WIN by sending news snippets, wit and gossip to Did You Hear? The best two entries each week will win a bottle of Oude Meester Demant. Other published entries win R200. Please include your name, address and telephone number. Last...

SA's big problem gets bigger.
March 26, 2010... SA's big problem gets bigger Until the global downturn started in 2007, SA had for several years been making reasonable progress with reducing unemployment, which has long been one of the toughest but also most critical problems facing the...

Enough debate, let's see leadership.
March 26, 2010... Enough debate, let's see leadership In many countries, calls from the senior ranks of the governing party for a discussion about a new morality may seem somewhat odd. The instinctive reaction is to wonder why this should be necessary. Yet that...

United they fall.
March 26, 2010... Byline: Barney Mthombothi United they fall The country's history is littered with the scalps of small opposition parties that tried unsuccessfully to merge in a bid to defeat or challenge a dominant ruling party. The ensuing coalition would...

State bullies beware.
March 26, 2010... Byline: NAZMEERA MOOLA State bullies beware When I drove into Cape Town last week, I found the road blocked to allow a cavalcade of government vehicles to pass. In sharp contrast to the more open style of government of the Zuma...

Whatever works.
March 26, 2010... Byline: ANDRE POTTAS Whatever works After a long period of underinvestment in public infrastructure, government in 2008 announced a range of infrastructure investment projects, totalling R785bn over three years, aimed at increasing economic...

Another Week.
March 26, 2010... Another Week AT HOME Gross domestic expenditure was up 5% quarter on quarter seasonally adjusted and annualised (qqsaa), disposable income grew by 2,7% qqsaa, after five quarters of recession, and gross savings as a percentage of GDP rose to...

MINING. Value in leftovers.
March 26, 2010... Byline: Charlotte Mathews MINING Value in leftovers Chromite, once the wallflower at the party for SA miners trying to extract platinum, palladium and gold from their deposits, is starting to attract its own admirers. In recent months...

COMMODITIES. Sharply down.
March 26, 2010... COMMODITIES Sharply down Copper for delivery in three months declined sharply during the past week as it took direction from the negative sentiment towards commodities. In addition, demand for base metals weakened after the Reserve Bank of India...

THE JOBLESS YOUTH CRISIS 2. Working solutions.
March 26, 2010... Byline: Claire Bisseker THE JOBLESS YOUTH CRISIS 2 Working solutions SA can no longer rely on policies that failed to dent unemployment during the boom years. presents scenarios to tackle the jobs crisis WHAT IT MEANS: SA must create 700 000...

Who didn't deliver?
March 26, 2010... Byline: Pearl Lucy Nomvula Mathibela Who didn't deliver? I must agree that there are a lot of ills at the local government level. My view, however, is that the African National Congress dug its own grave by being too accommodating and...

Retail sales.
March 26, 2010... Byline: Tshepo Mashego Retail sales The rate of decline in retail sales continued to moderate in January, with sales decreasing by 1,7% y/y, compared to December's drop of 3,8% and market expectations of a 2,5% fall. The moderation was led by...

ECONOMIC INDICATORS.
March 26, 2010... Byline: Razina Munshi -4 percent SA's current account deficit improved to 4% of GDP in 2009 the smallest gap since 2005 compared to 7,1% in 2008. Export volumes were up 4,6% during the fourth quarter of 2009, from 2,6% previously. The rise...

CONSTRUCTION. On the road to nowhere.
March 26, 2010... Byline: Razina Munshi CONSTRUCTION On the road to nowhere When Kaulani Civils won a roads contract in North West in December 2008, it celebrated its transition from an emerging contractor to a medium-sized one. But the repair and...

GENETICALLY MODIFIED CROPS. Springing up all over.
March 26, 2010... Byline: Shannon Sherry GENETICALLY MODIFIED CROPS Springing up all over The planting of genetically modified (GM) crops in SA and the rest of the world is surging ahead, the latest annual figures show. But an anti-GM organisation has blasted...

LOERIE AWARDS. No home-made stuff.
March 26, 2010... Byline: Matebello Motloung LOERIE AWARDS No home-made stuff The Loerie Awards has upped its standards. SA's premier advertising awards are aimed at recognising, rewarding and fostering creativity, and winning a Loerie is going to be much...

POLITICAL MORALITY. Cracking the code.
March 26, 2010... Byline: Prakash Naidoo POLITICAL MORALITY. Cracking the code When Jacob Zuma called for a national dialogue on a moral code he may have sparked a different debate from the one intended WHAT IT MEANS: ANC must examine its own moral...

FIRESTONE ENERGY - GENERAL MINING.
March 26, 2010... Byline: Charlotte Mathews FIRESTONE ENERGY GENERAL MINING Price: 33c 6m Dec T/O (A$m) EBT (A$m) EPS (c) DPS (c) Mkt cap: R2,3m 2009 -1,6 -1,5 -0,08 PE: -31,13 2008 -0,3 -0,3 -0,003 Sector: 16,22 t s The company is building a tidy portfolio of...

FONEWORX. Bucking the trend.
March 26, 2010... Byline: Larry Claasen FONEWORX Bucking the trend A slowing economy has not slowed FoneWorx. If anything, it has helped the group. FoneWorx provides small to medium-sized businesses with products like fax to e-mail and automated receptionists...

STATE-OWNED ENTERPRISES. Reviews all round.
March 26, 2010... Byline: Thebe Mabanga STATE-OWNED ENTERPRISES Reviews all round The mooted review of state-owned enterprises (SOEs) runs the risk of starting a number of parallel processes that do not yield a final result. President Jacob Zuma has confirmed...

101.
March 26, 2010... Byline: Evan Pickworth Why have European Union (EU) talks on hedge fund regulation stalled? The proposed EU directive mainly affects Britain, where an estimated 80% of Europe's hedge funds are based. UK PM Gordon Brown won a reprieve last...

Sponsor for debate.
March 26, 2010... Byline: Matebello Motloung Sponsor for debate The Academy of the Association for Savings & Investment SA (Asisa) has partnered with Today's Trustee magazine to form a national response to trustee education. Terence Berry, principal of the...

THE RECESSION. Worst over.
March 26, 2010... Byline: Evan Pickworth THE RECESSION Worst over Small enterprises have been the biggest casualties of the recession, which analysts say will linger for another six months. However, the business market is picking up (see graphic) and...

FOREIGN AID. A case of quid pro quo.
March 26, 2010... Byline: Evan Pickworth FOREIGN AID A case of quid pro quo Lending institutions are not giving up on Africa despite decades of abuse of aid flows and concerns over whether aid even works as a tool to improve growth and alleviate poverty. ...

ENTREPRENEUR. Smart tour guide.
March 26, 2010... Byline: Tshepo Mashego ENTREPRENEUR Smart tour guide What started as a brainwave for Cape Town tour guide Mark Allewell has turned into an enterprise spanning three continents. Five years ago Allewell launched Tourism Radio, a GPS-enabled...

GIMME. Kitchen cool.
March 26, 2010... Byline: Kate Thompson GIMME Kitchen cool Until recently, online shoppers in SA could have been forgiven for thinking that all you could buy online was books, flights and computer accessories. But online shops are not limited by floor space...

LAND TRANSFER. Time to take root.
March 26, 2010... Byline: Shannon Sherry LAND TRANSFER Time to take root WHAT IT MEANS: R3bn agri investment fund planned. Aims to ensure farms transferred succeed A land-reform system which ensures the productivity of farms transferred to new black farmers...

HEALTH. Hope for cancer registry.
March 26, 2010... Byline: Jacqui Pile HEALTH Hope for cancer registry SA's National Cancer Registry (NCR) is nearly a decade out of date. The registry, which operates as a surveillance unit within the National Health Laboratory Service, collates and analyses...

Internet use in numbers.
March 26, 2010... Byline: Tshepo Mashego Internet use in numbers 50% The growth in the number of South Africans accessing the Internet via broadband in the past year. 10% of South Africans (5,3m) are now online. 25,6% is the global average Internet...

THE PLACE TO BE OR NOT TO BE. Middle East luxury.
March 26, 2010... Byline: Zohra Mohammed THE PLACE TO BE OR NOT TO BE Middle East luxury CORAL INTERNATIONAL HOTEL Where: Cape Town Mood: Arabic The Coral International in Cape Town's Bo-Kaap Malay Quarter offers the service and standard one expects at a...

PROFILE. Mission challenge.
March 26, 2010... Byline: Thebe Mabanga PROFILE Mission challenge Black Management Forum (BMF) MD Gaba Tabane will have to use his position to articulate the BMF's identity. As the BMF is widely regarded as a body that is driven by the private sector, it...

QUESTIONS & ANSWERS. Debate in motion.
March 26, 2010... Byline: Zohra Mohammed QUESTIONS & ANSWERS Debate in motion Labelled arrogant and public enemy number one, Ethekwini city manager Mike Sutcliffe explains his position to In the latest controversy, critics say your proposed amendments to...

QUOTE OF THE WEEK.
March 26, 2010... Byline: JACOB ZUMA QUOTE OF THE WEEK Comrade Gordhan is one of the key and most senior leaders of the ANC and has come a long way. If you attack a minister you are also attacking the president, as you are questioning his judgment in...

WHERE ARE THEY NOW? Sharp words bluntly.
March 26, 2010... Byline: Charlotte Mathews WHERE ARE THEY NOW? Sharp words bluntly ArcelorMittal SA's loss of its supply contract with Kumba Iron Ore over ArcelorMittal's failure to renew its mining right at Sishen is not helping SA's image among overseas...

GOLD. Takes a knock.
March 26, 2010... GOLD Takes a knock After failing to break through the technical resistance level of US$1133/oz last week, the price of gold declined to a three-week low at the start of this week after the dollar strengthened against the euro, eroding demand for...

TELECOMMUNICATIONS. Chiefly at odds.
March 26, 2010... Byline: Larry Claasen TELECOMMUNICATIONS Chiefly at odds The chairman of the telecommunications and broadcasting regulator, the Independent Communications Authority of SA (Icasa), believes his organisation might become more efficient if he...

JSE. Domestic run.
March 26, 2010... Byline: Julie Bain JSE Domestic run Domestic shares have been strong on the JSE and have outperformed resources shares. This is seen in the graph of the Findi30 index relative to the JSE all share index. The Findi30 includes the 30 strongest...

Putting his foot in it.
March 26, 2010... Byline: Errol Denman Putting his foot in it Poor Clarence Keyter (FM Fox February 1). I think most of us have been dropped 11th-hour steamers by our esteemed bosses. Twenty years on and the wound still hasn't quite healed and probably never...

Perils of prostitution.
March 26, 2010... Byline: Louise Pretorius Perils of prostitution I am concerned that prostitution is not only threatening our country morally, but also economically. By legalising prostitution, government would be defeating its objective of job creation....

RUGBY. Deep end not for everyone.
March 26, 2010... Byline: David Williams RUGBY Deep end not for everyone As the late-March highveld autumn aligns the weather with a rugby season that started in early February, there were some thought-provoking aspects to last weekend's rugby at various...

KINGS OF LEON: Live at the O2 Arena DVD & Blu-ray (Sony).
March 26, 2010... Byline: Randall Abrahams KINGS OF LEON: Live at the O2 Arena DVD & Blu-ray (Sony) From time to time I'm willing to focus my attention on the visual side of popular music. And a number of interesting concert and documentary pieces have...

GEORGE MICHAEL:Live in London DVD & Blu-ray (Sony).
March 26, 2010... Byline: Randall Abrahams GEORGE MICHAEL: Live in London DVD & Blu-ray (Sony) A horse of a rather different colour is the former Wham singer's engagement in the UK. Michael is a fashionable, dapper pop star who surrounds himself with...

CINEMA Asylum of no return.
March 26, 2010... Byline: Peter Wilhelm CINEMA Asylum of no return If difficult to unravel, this is a first-rate thriller from Scorsese Shutter Island. Directed by Martin Scorsese. Lead roles: Leonardo DiCaprio, Mark Ruffalo, Ben Kingsley, Max von Sydow,...

HOTEL CAPE TOWN. More than before.
March 26, 2010... Byline: Linda Stafford HOTEL CAPE TOWN More than before A shabby cul-de-sac in Cape Town's Gardens has become a sophisticated home from home, finds MORE QUARTERS Address: 2 Nicol Street, Gardens, Cape Town Tel: (021) 487-5660 E-mail:...

FOOD FOR THOUGHT Uneasy lies the head.
March 26, 2010... Byline: Justice Malala FOOD FOR THOUGHT Uneasy lies the head JUSTICE MALALA ***1/2Cafe Picobella Trattoria. 66 4th Avenue, Melville, Johannesburg. Tel: (011) 482-4309 *****Madiba! ****Excellent ***Good **Zuma *Malema They grew up wanting to...

AT LUNCH WITH THE FM. Keeper of the castles.
March 26, 2010... Byline: Hilary Prendini Toffoli AT LUNCH WITH THE FM Keeper of the castles with Relais & Chateaux director Annie-Claude Bergonzoli at The Greenhouse, Cellars-Hohenort Hotel, Cape Town HOW SHE CHILLS: Doing maths sums with her teenage...

Feeble defence of Mbeki.
March 26, 2010... Byline: Peter Graham Feeble defence of Mbeki I can understand why the author of Unfair to Mbeki (Letters March 5) would not have his name disclosed. It is an inane and puerile letter trying to defend somebody who did irreparable damage to the...

COMPU-CLEARING Classic characteristics.
March 26, 2010... Byline: Stafford Thomas COMPU-CLEARING Classic characteristics Compu-Clearing Outsourcing (CCO) chairman Arnold Garber has never promised super earnings growth from the company he founded. But he has promised and unerringly delivered...

CONSTRUCTION. Promise remains.
March 26, 2010... Byline: Razina Munshi CONSTRUCTION Promise remains The boom times may have gone but there is still value in the sector, with infrastructure spending underpinning order books WHAT IT MEANS: Public corporations are not spending. Construction...

Crisis watch.
March 26, 2010... Byline: Andrew McNulty Crisis watch Most of the world is returning to growth. Investors' attention is focused on the recovery and the improvement in earnings. Yet some serious constraints to growth will worsen over the next few years. ...

Diamond: Cipla Medpro; Dog: Iliad.
March 26, 2010... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond Cipla Medpro Cipla Medpro is far from shy about blowing its own vuvuzela, and lists a number of reasons to be cheerful about its performance in a difficult year. Not only did...

9 QUESTIONS FOR Stephen Koseff, CEO of Investec.
March 26, 2010... Byline: Evan Pickworth Stephen Koseff, CEO of Investec FM: Assets under management since March 31 2009 are up 50% to GBP43,4bn. Is this a geographic issue, where you have an edge? Koseff: It is a general issue of building the brand and not...

BANKING. Tread warily.
March 26, 2010... Byline: Stafford Thomas BANKING Tread warily Banks remain under pressure and it looks like a tough year ahead for companies. Investors should be cautious WHAT IT MEANS: Dividends look vulnerable. Equity valuations stretched They [SA...

CIPLA MEDPRO - PHARMACEUTICALS.
March 26, 2010... Byline: Sasha Planting CIPLA MEDPRO PHARMACEUTICALS Price: R121 Yr Dec T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R2,40bn 2009 1262 239 36,3 PE: 19 2008 994 193 29,3 Sector: 8,57 t s +27% +23% +26% Cipla had a good year with sales and profits...

RETIREMENT FUND INVESTMENT Another look at the rules.
March 26, 2010... Byline: Andrew McNulty RETIREMENT FUND INVESTMENT Another look at the rules Section 28 of the Pension Funds Act, the regulation that governs investment of pension fund money, is being revised and updated for the first time in years. The...

FOOD RETAILERS. What's in a fish cake?
March 26, 2010... Byline: Sasha Planting FOOD RETAILERS What's in a fish cake? The fortunes of SA fish product producers vary but it seems to boil down to a fall-off in overseas demand WHAT IT MEANS: I& J hit hard by rand strength and recession. Sea...

Investor's Notebook.
March 26, 2010... Byline: Stephen Cranston Investor's Notebook It is not too much of a hardship to go to Cape Town for the Morningstar awards, particularly in March when the winds have calmed down and the rains have not yet come. We hold it there because it is...

OIL. Regaining ground.
March 26, 2010... OIL Regaining ground Last week, the price of Brent crude tumbled nearly 3% due to speculation that Greece would fail to secure financial assistance from the European Union. This meant the euro fell almost 2% against the dollar and trimmed demand...

THE UGLY DUCKLING: POYNTING HOLDINGS.
March 26, 2010... Byline: Larry Claasen THE UGLY DUCKLING POYNTING HOLDINGS 1. Cash positive + 2. Revenue up + 3. Share ignored - 4. Dividend paid - 5. Profitable - The antenna manufacturer has made a pleasing recovery. It increased revenue by a healthy 23% to...

Weak rand suits me fine.
March 26, 2010... Byline: Wynand van Zyl Weak rand suits me fine Nazmeera Moola's column on the lack of rail capacity to transport minerals (Economic Viewpoint February 26 ) refers. We are all aware of the so-called Dutch disease, where exports of resources...

RARE HOLDINGS - INDUSTRIAL SUPPLIERS.
March 26, 2010... Byline: Larry Claasen RARE HOLDINGS INDUSTRIAL SUPPLIERS Price: 75c 6m Dec T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R66,5m 2009 262,2 10,2 -9,02 PE: 11,31 2008 362,4 18,6 15,33 Sector: -23,2 t s -27,6% -45% The pipe supplier and installer...

A pounding headache.
March 26, 2010... Byline: Tsakani Mapengo A pounding headache Every entertainment establishment (pubs, restaurants and so on) I have been to lately seems to be excited about the opportunities afforded by the looming soccer World Cup. Owners and employees...

How to ruin a country.
March 26, 2010... Byline: Robert Butson How to ruin a country This is what you're all in for. For those who disagree, show me an African success story Barney Mthombothi's column headlined On the road to ruin (Editor's Note February 12) was an excellent opinion...

SECUREDATA. Numbers in safety.
March 26, 2010... Byline: Larry Claasen SECUREDATA Numbers in safety Keeping computers safe has been good for SecureData. The technology group, which specialises in IT security, reflected a bumpy ride in its previous set of half-year numbers, but its latest...

A wasted decade.
March 26, 2010... Byline: DUNCAN McLEOD A wasted decade A full-blown price war has erupted in fixed-line broadband in SA. Internet service providers are racing to outdo each other to provide unmetered bandwidth cheaper. Great for consumers and the economy but...

NUCLEAR POWER. Bay watch.
March 26, 2010... Byline: Charlotte Mathews NUCLEAR POWER. Bay watch As it draws closer, locals start to think about the pros and cons of nuclear WHAT IT MEANS: skom plans a second nuclear station. St Francis Bay residents object Because of public...

NUCLEAR FUNDING. Who said deathbed?
March 26, 2010... Byline: Charlotte Mathews NUCLEAR FUNDING Who said deathbed? SA's pebble bed modular reactor (PBMR) project may not be completely dead, after all. Westinghouse Electric, one of the co-investors in the project, is very likely to make a further...

And the winner is?
March 26, 2010... Byline: Jack Bloom And the winner is? Are you a winner if you save money by cancelling something that should not have been signed in the first place? Gauteng economic development MEC Firoz Cachalia is picked as a winner for extricating the...

REAL PEOPLE DOING UNREAL THINGS. Roll out the barrel.
March 26, 2010... Byline: Robert Quarshie REAL PEOPLE DOING UNREAL THINGS. Roll out the barrel Grant Gibbs. Social entrepreneur THE UNREALITY CHECK. Founder of the Hippo Water Roller Project, which has sold 30 000 units to date The water roller is easier,...

Energised.
March 26, 2010... Byline: Tamara Oberholster Energised Armed with an explosive new strategy, this firm is aiming higher WHAT IT MEANS: Now boasts a new corporate identity. Has a stronger customer focus P AEL Mining Services, an international leader in...

FOUNDATIONS. Strong and strategic.
March 26, 2010... Byline: Tamara Oberholster FOUNDATIONS Strong and strategic AEL's level of professionalism and experience, coupled with an intrinsic understanding of customers' needs are the factors that differentiate it from its competitors. Another...

RETRENCHMENT PROFIT. Pennies versus people.
March 26, 2010... Byline: Patrick Weech RETRENCHMENT PROFIT Pennies versus people It seems obvious that an ailing company should be entitled to retrench workers if this is what it takes to avert bankruptcy. But what if a profitable business cuts its workforce...

Regulate.
March 26, 2010... Byline: Patrick Weech Regulate Labour brokers need an industry body with an enforceable code of conduct WHAT IT MEANS: Regulatory approach has prospects. Needs an industry body with enforceable code of conduct Labour brokers will be lucky if...

TROUBLEMAKERS Tread carefully on this one.
March 26, 2010... Byline: Patrick Weech TROUBLEMAKERS Tread carefully on this one There are three valid grounds to terminate employment: misconduct, incapacity and operational requirements. But what to do about problem employees, who can be troublemakers or...

STRIKE NOTICES. Preparation before protest.
March 26, 2010... Byline: Luleka Mangquku STRIKE NOTICES Preparation before protest Trade unions have to prepare their strike notices to employers with great care because if notices fall short of legal requirements, workers can find their strikes are...

Ripe for the picking.
March 26, 2010... Byline: Razina Munshi AFRICA Ripe for the picking After the dearth of M& A activity in 2009, enthusiasm about Africa's prospects has emanated from across the globe. Emerging markets are recognised as the leaders of the global recovery,...

Empowering against odds.
March 26, 2010... Byline: Razina Munshi BEE Empowering against odds Despite a slump during 2009, black economic empowerment (BEE) deals are still expected to be a key driver of M& A activity over the next few years. The slowdown in transactions was...

New act's pros and cons.
March 26, 2010... Byline: Razina Munshi LEGISLATION New act's pros and cons The new Companies Act is expected to act as an enabler for M& A activity, once it is promulgated this year. In spite of a possible delay, government hopes that it will still come...

Prudence the way to go.
March 26, 2010... Byline: Razina Munshi Prudence the way to go Firms will now examine the sustainability of proposed transactions in greater detail WHAT IT MEANS: Lower interest rates and more realistic asset valuations should help fuel M& A activity. ...

Thumbs up for service.
March 26, 2010... Byline: Sibonelo Radebe Thumbs up for service Improved connectivity should help with economic growth WHAT IT MEANS: Has invested large amounts to upgradeits networks across the continent. MTN Business, the integrated telecommunication...