Financial Mail articles from May 2009

Financial Mail archives from May 2009

Ask the Guru.
May 29, 2009... What is the difference between my carbon footprint and my ecological footprint? Your carbon footprint is a measure of the net greenhouse gases you emit. Because there are various greenhouse gases, these are converted into tons or kilograms of CO...

Betting on reason.
May 29, 2009... Byline: ARNOLD WENTZEL Betting on reason The famous Pascal's wager is an interesting attempt to prove the existence of God. It originated from Blaise Pascal, a 17th century philosopher, who stated that reason alone can never prove God's...

ISSUE. Environmental education.
May 29, 2009... Byline: Garreth Bloor ISSUE. Environmental education Students, as our society's future, should lead the charge to green SA Students at universities are generally the activists of the contemporary generation, the leaders of future society...

Editor's note.
May 29, 2009... Byline: Shirley de Villiers On June 5, we'll be celebrating World Environment Day, a UN initiative that draws attention to environmental issues and encourages policy action. To mark the event, FM Campus brings you a special green issue. We've...

ENVIRONMENTAL ACTIVIST. Catching the profit worm.
May 29, 2009... Byline: Thabo Maja ENVIRONMENTAL ACTIVIST. Catching the profit worm FullCycle eco-consultancy's big ideas mean business, and a cleaner world Environmental entrepreneurship educator, activist and business owner Mary Murphy's story is a...

Campus News.
May 29, 2009... BTech student Jeremy Martin's documentary, Talking to Earthworms, was one of 12 films made by Durban University of Technology students screened on SABC in April and May. The 26-minute film follows organic farmer Brett Muller as he sets up a...

This week on the web.
May 29, 2009... FM Campus prize winners! Congratulations to UJ econometrics honours student Gavin Karaiskos and UCT BBusSci student Mark Robinson, the winners of FM Campus's iPod Nano subscription prize giveaway! News from the blog When the relationship between...

Pointer. CARTEL.
May 29, 2009... Pointer CARTEL: A consortium of independent organisations formed to limit competition by controlling the production and distribution of a product or service through its pricing.

Pointer. MORTGAGE.
May 29, 2009... Pointer MORTGAGE: The security over property given to the lender for the repayment of the loan.

Pointer. TEXTILES.
May 29, 2009... Pointer TEXTILES: A broad classification of the materials that can be used in constructing fabrics.

Pointer. INSOLVENCY.
May 29, 2009... Pointer INSOLVENCY: Refers to an individual or company's inability to pay debts as they are due.

SASOL. What's in a name?
May 29, 2009... SASOL What's in a name? SA energy outfit's reputation may suffer damage after price-fixing scandal Being the class jester or the one that funnels the most beer can be great for popularity with your peers. But in the academic or working world, it...

BANKING. Going in with guns blazing.
May 29, 2009... BANKING Going in with guns blazing Reserve Bank governor takes on the big banks Sometimes it takes courage to stand up for what you believe is right. But having a little more than bravado and a sense of social duty is needed when taking on...

TEXTILE INDUSTRY. Friends in high places.
May 29, 2009... TEXTILE INDUSTRY Friends in high places State body asked to help save textile company Your degree can provide you with the skills to get a job when you graduate but sometimes surviving in the corporate world isn't just about what you know; who...

PROPERTY WATCH. SA homeowners are still out in the cold.
May 29, 2009... PROPERTY WATCH SA homeowners are still out in the cold Property bears the brunt of the economic downturn We all want to graduate, get a well- paying job and set up our white picket-fence future. For many, this involves property ownership. But,...

INTERVIEW. The triple bottom line.
May 29, 2009... Byline: Garreth Bloor INTERVIEW. The triple bottom line Richard Worthington hopes to add sustainability and social justice to businesses' balance sheets World Wide Fund for Nature (WWF) SA's climate change programme manager, Richard...

Does the energy crisis justify coal mining in sensitive catchment areas?
May 29, 2009... Byline: Dunisani Mabunda, Lise Pretorius Dunisani Mabunda Student Economic Journal editor, UJ There are numerous dangers involved in coal mining in ecologically sensitive catchment areas. Mining in these areas not only disrupts the aesthetics...

Does the energy crisis justify coal mining in sensitive catchment areas?
May 29, 2009... Byline: Maitland Seaman Does the energy crisis justify coal mining i n sensitive catchment areas? Maitland Seaman Director, centre for environmental management, University of the Free State Life requires trade-offs; there are very few...

TALK ABOUT IT. Sasol.
May 29, 2009... TALK ABOUT IT 1)What are the main differences between a perfectly competitive firm and a monopolistic firm? 2)How can authorities prevent firms from behaving in an anti-competitive way? 3)What is corporate social responsibility and must all...

TALK ABOUT IT. Banking.
May 29, 2009... TALK ABOUT IT 1)What are the legislative duties of the SA Reserve Bank and what makes it different from other banks? 2)Should the margin between the repo rate and the prime rate be moved closer? 3)Which are the most effective tools available to...

TALK ABOUT IT. Textile Industry.
May 29, 2009... TALK ABOUT IT 1)What are the criteria, if any, for receiving state funding as a private company? 2)How has the global financial meltdown directly affected the textile industry? What other factors worsened its plight? 3)Why does the textile...

TALK ABOUT IT. Property prices.
May 29, 2009... TALK ABOUT IT 1)What factors contributed to the fall in property prices? 2)Does the property price always reflect the state of the economy? 3)Why is property one of the most sought- after assets in any economy what characteristics make it a...

CONSULTANT. Counting the costs.
May 29, 2009... Byline: Sofia Tosolari CONSULTANT. Counting the costs Karen Opitz delicately balances the needs of the environment against the costs of infrastructural development I was always interested in understanding how things work and fit together,...

FAST FACTS. Karen Optiz.
May 29, 2009... FAST FACTS At work, I most enjoy the people I work with, the buzz of juggling things and feeling part of the world. I least enjoy sometimes not being able to do things as well as I'd like because of budget and time constraints. I drive my...

RUGBY. Blue bulldozers.
May 29, 2009... Byline: David Williams RUGBY Blue bulldozers It took a deficit of 13 points to induce the Bulls to produce the kind of rugby that their prodigious individual talents should make automatic. When the Crusaders took a lead of 20-7 in the...

Punished for being good.
May 29, 2009... Byline: Ian Fife Punished for being good Banks are eager to reduce their risky, low-profit home loans and use that capital for more profitable business. So why punish Bob Young for giving them what they want? Young (62), a successful...

Diamonds & Dogs. Diamond: Stefanutti Stocks. Dog: BRC Diamondcore.
May 29, 2009... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond Stefanutti Stocks Most of us would be nervous if we came across a builder who had pumped up as quickly as these boys, but the acquisition of Stocks has enabled Stefanutti to...

Did you hear?
May 29, 2009... The Post Office, one of last week's Comrades Marathon sponsors, displayed the slogan: From start to finish we deliver. Pity they missed the start, with the good luck SMSes arriving at 7.30am, two hours after the commencement of the race. A...

When greed trumps common sense.
May 29, 2009... When greed trumps common sense Whatever else a bank does, it has to look after its depositors' money. For years this obligation, which takes precedence even over the duty to maximise shareholder value, has been taken for granted to such an...

The ultimate price of collusion.
May 29, 2009... The ultimate price of collusion Sasol's board and its chairman, Hixonia Nyasulu, should be deeply concerned and embarrassed. Last week the competition commission fined the group R250m for anticompetitive and collusive behaviour by its fertiliser...

Who runs this place?
May 29, 2009... Byline: BARNEY MTHOMBOTHI Who runs this place? During the 1992 US presidential elections, Bill Clinton, his candidacy mired in scandal, suddenly lashed out at little-known black rapper Sister Souljah for what he said were racist utterances,...

Another week. At home. Abroad. Sport.
May 29, 2009... Another Week AT HOME SA enters a recession for the first time in 17 years as real GDP for Q1 (seasonally adjusted) fell by an annualised rate of 6,4%, compared with the 1,8% contraction of Q4 last year, mainly due to an export slump. MTN...

Coffee original.
May 29, 2009... Byline: Karin Sternberg Coffee original Your article on the thriving coffee culture in SA (FM Life May 15) refers. While we at Doubleshot Coffeebar in Plettenberg Bay are delighted to be featured in the FM, I should point out that we are...

Sharply distressing.
May 29, 2009... Byline: Duncan McLeod Sharply distressing While many consumers are fretting over which high-definition TV to buy, a new, low-power screen technology is already on the horizon. TVs that use organic light-emitting diodes could quickly consign...

Right fight, wrong battle.
May 29, 2009... Byline: Rob Rose BANKS BEHAVING BADLY 1 Right fight, wrong battle SA banks, though shielded from the financial upheaval overseas, have come in for a lashing over the rates they charge customers. Is it just a storm in a tea cup? examines why...

Farming the books.
May 29, 2009... Byline: Rob Rose and Ian Fife BANKS BEHAVING BADLY 2 Farming the books As bad debts rocket and profit falls, banks are using dubious tactics to protect themselves. investigate WHAT IT MEANS New mortgages fall 25% in 2009. Banking ombud...

Squiffy location.
May 29, 2009... Byline: Clive M Kihn Squiffy location If David Furlonger thinks Matjiesfontein is nestled next to the N2 (Fox May 22), then the pub at the Lord Milner Hotel must have been every bit as convivial as his report suggests! The village lies...

Did you hear. Prizewinners.
May 29, 2009... YOU COULD WIN by sending news snippets, wit and gossip to Did You Hear? The best two entries every week will each win a bottle of Vergelegen's sauvignon blanc and a bottle of its cabernet sauvignon. Other published entries win R200. Last week's...

Economic Indicators.
May 29, 2009... 48th position SA has moved up five places in a world competitiveness index for 57 countries, buoyed by its resilience to the global financial crisis. Analysts say SA may have moved up because the crisis has affected the competitiveness of other...

Liquidations.
May 29, 2009... Byline: Razina Munshi Liquidations For the first four months of 2009, company failures rose by 45,3% y/y (from 934 to 1357). The rise in liquidations was the result of increases of 48,2% in voluntary liquidations and 22,4% in compulsory...

Golden mean, naturally.
May 29, 2009... Byline: Matebello Motloung ENTREPRENEUR Golden mean, naturally Had it not been for her landlord's plan to open up a liquor store next to her pharmacy, Chamilla Sanua would not be where she is today. A pharmacist by profession (she graduated...

The hallmark of urgency.
May 29, 2009... Byline: Carol Paton QUESTIONS & ANSWERS The hallmark of urgency New finance minister Pravin Gordhan is a pragmatist whose passion is for greater social justice and a better life for future generations. He speaks to about the approach he...

All in the family.
May 29, 2009... Byline: Claire Bisseker All in the family The clothing industry is abuzz with the news that new economic development minister Ebrahim Patel has appointed Cosatu stalwart Neil Coleman as his ministerial adviser. Business is already nervous...

Time to be patient.
May 29, 2009... Byline: David Furlonger PEUGEOT SA Time to be patient New MD Jean Francois Bacos doesn't underestimate the scale of the challenge at Peugeot SA. Despite improving owner satisfaction, the French vehicle manufacturer's subsidiary is struggling...

Keep it functional.
May 29, 2009... Byline: Matebello Motloung MOBILE TECHNOLOGY Keep it functional Pressure is mounting on the SA advertising and media planning industries to treat digital media as must-have communication tools, instead of add-ons or afterthoughts. Globally,...

In the fertiliser again.
May 29, 2009... Byline: Shannon Sherry SASOL In the fertiliser again The fuel producer is treating its fines too lightly and is heading for a fight WHAT IT MEANS High fertiliser prices lead to farm losses. Cosatu calls for state control of Sasol. Sasol...

No winter warmth here.
May 29, 2009... Byline: Ian Fife SUBURB WATCH No winter warmth here There's a wintry chill blowing through SA's residential property data. Generally, prices will keep falling, perhaps until the end of this year. However, despite the hammering property has...

WHERE ARE THEY NOW?
May 29, 2009... Byline: Prakash Naidoo Metrobus strike in numbers 90000 passengers are transported daily by Metrobus, making it SA's second-largest municipal bus operator, after Durban. 532 buses make up the Metrobus fleet, which is wholly owned by the City...

101.
May 29, 2009... Byline: Razina Munshi What is the one-off electricity tax proposal? Reserve Bank governor Tito Mboweni says a one-off tax to finance Eskom's capacity expansion would be a better option for the average citizen than the power utility's proposed...

High-end smart phone.
May 29, 2009... Byline: Duncan McLeod GIMME High-end smart phone Nokia has announced a raft of new E-Series devices aimed at business users in recent months. The latest addition, the E75, a slider phone that opens to reveal a full Qwerty keyboard, has just...

R13bn lost to fraud.
May 29, 2009... Byline: Shoks Mzolo MEDICAL AID R13bn lost to fraud Billions of rand continue to flow out of medical schemes thanks, in part, to overservicing by health-care service providers and other fraudulent activities. The Board of Healthcare...

Still pushing the boundaries.
May 29, 2009... Byline: Sasha Planting WHERE ARE THEY NOW? Still pushing the boundaries Joe Pamensky, one of SA's longest serving cricket administrators, attended every one of the IPL games held at the Wanderers in Johannesburg. Though he prefers the...

Recession depression.
May 29, 2009... Byline: Claire Bisseker EYE OF THE STORM Recession depression Nobody in national treasury is committing suicide over the alarming revelation that SA's GDP contracted by 6,4% in the first quarter, according to the department. But perhaps they...

Head to head.
May 29, 2009... Byline: Prakash Naidoo INDUSTRIAL RELATIONS Head to head Cosatu is playing a high-stakes game how will government react? WHAT IT MEANS Government's first clash with labour. Can Zuma please both business and unions? There is no doubt Zuma owes...

Wielding real power.
May 29, 2009... Byline: Carol Paton THE PRESIDENCY Wielding real power Trevor Manuel is likely to take charge of government's medium-term strategic framework after this week's cabinet lekgotla, making him besides President Jacob Zuma the most powerful person...

Friends in high places.
May 29, 2009... Byline: Claire Bisseker TEXTILE SECTOR Friends in high places Having said no, the IDC is under pressure to save Patel's pet project WHAT IT MEANS Government is already compromised. Criteria for rescue packages needed. The battle to save...

Not always friendly.
May 29, 2009... Byline: Thebe Mabanga ALLIANCE POLITICS Not always friendly The warmth of the alliance between the governing ANC, Cosatu and the SACP is likely to be subjected to various cooling pressures. One early source of dispute, especially for the...

ATMs with Midas touch.
May 29, 2009... Byline: Matthew Hill GOLD COINS ATMs with Midas touch SA's avid ATM bombers must be salivating at the prospect. Teller machines dispensing gold that won't get shredded like notes by explosives are being introduced to the market. Unfortunately...

On the skids.
May 29, 2009... Byline: Thebe Mabanga EMPOWERMENT FINANCIERS On the skids WHAT IT MEANS Empowerment financing is at stake. Employment contracts may not be renewed Molefe has worked against the collective, and they want him out A FORMER UNIONIST, NOW PENSION...

Berg pseudo village.
May 29, 2009... Byline: Matthew Hill PLACE TO BE OR NOT TO BE Berg pseudo village Alpine Heath resort Where: Northern Drakensberg, KwaZulu Natal. Mood: Children's playground If children should be unseen and unheard, the Alpine Heath resort in the Northern...

A mine of information.
May 29, 2009... Byline: Thebe Mabanga PROFILE A mine of information Few of the ANC's newly elected portfolio committee chairmen and women in parliament come as well prepared as Fred Gona. The first-term MP and new chairman of the mining portfolio committee...

Quote of the week. LESETJA KGANYAGO NATIONAL TREASURY DIRECTOR-GENERAL.
May 29, 2009... QUOTE OF THE WEEK I can assure you we will revise growth downwards by October and, if we do record 0% growth, we would be doing very well LESETJA KGANYAGO NATIONAL TREASURY DIRECTOR-GENERAL commenting on government's earlier forecast of 1,2%...

An investor with heart.
May 29, 2009... Byline: Jacqui Pile REAL PEOPLE DOING UNREAL THINGS An investor with heart Peter Shrimpton Social investor THE UNREALITY CHECK Gave up venture capitalist career after being diagnosed with cancer. Launched three incubation funds for social...

State readies its case.
May 29, 2009... Byline: Carol Paton SABC FINANCES State readies its case Beleaguered SABC chair Kanyi Mkonza is unlikely to hang onto her job much longer as parliament readies for its final assault on the board appointed by former president Thabo Mbeki....

Nature strikes back.
May 29, 2009... Byline: Tim Anderson Nature strikes back Unless we change, we face a scenario of billions of people with nothing to do but scavenge for food before war and disease kill them off Iraj Abedian's analysis (Cover Story May 22) of what our new...

CINEMA. Darkness visible.
May 29, 2009... Byline: Peter Wilhelm CINEMA Darkness visible A hypnotic, adult tale that disturbs and compels speculation Blindness Directed by Fernando Meirelles. Lead roles: Julianne Moore; Mark Ruffalo; Alice Braga; Danny Glover; Gael Garcia Bernal;...

HOTEL. Welcome to the pleasuredome.
May 29, 2009... Byline: Linda Stafford HOTEL Welcome to the pleasuredome As it's supposed to be at the price, One& Only Cape Town is a bit of a spoiler for other hotel experiences, finds ONE& ONLY CAPE TOWN. Address: Dock Road, V& A...

LUNCH IN LONDON, DINE IN TOKYO.
May 29, 2009... Byline: Linda Stafford LUNCH IN LONDON, DINE IN TOKYO It doesn't come as a surprise that One& Only Cape Town's celebrity-chef restaurants are packed with locals, especially the more inventive Nobu. This despite the chefs themselves not...

FOOD FOR THOUGHT. Change on the menu.
May 29, 2009... Byline: JUSTICE MALALA FOOD FOR THOUGHT Change on the menu **** The Troyeville Hotel. 25 Bezuidenhout St, Troyeville. Tel: (011) 402-7709. ***** Obama; **** Excellent; *** Good; ** Poor; * S'bu Ndebele. I know the idea of being...

Sack the chauffeur!
May 29, 2009... Byline: David Furlonger MOTORING Sack the chauffeur! WHAT IT COSTS. Do you really want to know? If I'd ever travelled in a Flying Spur before, I'd notice a big difference in the new version, local Bentley boss Rens Rademeyer assured me....

THE FM INTERVIEW. Young blood.
May 29, 2009... Byline: Jacqui Pile THE FM INTERVIEW Young blood meets newish Southern Sun MD Graham Wood HOW HE CHILLS. Enjoys mountain biking, golf and spinning. Spending time with his two daughters The last time the FM interviewed Graham Wood,...

BRAIT. INVESTMENT SERVICES. BUY.
May 29, 2009... Byline: Shoks Mzolo BRAIT INVESTMENT SERVICES Price: R13 Yr Mar T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R1,44bn 2009 334,1 217,2 156,6 178,9 PE: 8,30 2008 272,6 411,2 367,7 150,3 Sector: 8,47 t s +23% -47% -57% +19% The globe may be...

Flurry in the chicken coop.
May 29, 2009... Byline: Sasha Planting AFGRI/SOVEREIGN Flurry in the chicken coop With both Country Bird and Afgri competing for Sovereign Foods' attention, one thing is certain the much-cherished family culture at the Port Elizabeth-based chicken operation...

Commodities. Strong metal.
May 29, 2009... COMMODITIES Strong metal Platinum for immediate delivery rose by almost 5% last week as the weakening dollar and increased demand expectations for the metal boosted prices. The price of platinum has fallen by more than 40% since reaching a...

Oil. Production flat.
May 29, 2009... OIL Production flat The price of Brent crude oil jumped 8% last week as the dollar fell to a four-month low. Rising global equities supported prices further. Renewed violence in Nigeria and problems at US refineries also boosted prices during...

Still only one real choice.
May 29, 2009... Byline: Duncan McLeod VODACOM/MTN/TELKOM Still only one real choice With Vodacom's drama-filled listing last week, SA investors now have three giant telecommunications operators on the JSE from which to choose. But it's clear that MTN, which...

MEDI-CLINIC. HEALTH-CARE EQUIPMENT & SERVICES. SELL.
May 29, 2009... MEDI-CLINIC HEALTH-CARE EQUIPMENT & SERVICES Price: R19,65 Yr Mar T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R11,65bn 2009 16,35 1 214 113,7 47,0 PE: 18,6 2008 9,58 1 085 144,9 41,9 Sector: 14,9 t s +71% +12% -22% +12%

Dubai spoils the party.
May 29, 2009... Byline: Shoks Mzolo MEDI-CLINIC Dubai spoils the party Is the market falling out of love with Medi-Clinic? The question arises because of the softening stock on the JSE, poor numbers from the Dubai business and the potential tapering off of...

Lots can be snapped up.
May 29, 2009... Byline: Matthew Hill MINING INVESTMENT Lots can be snapped up Selling risk to investors these days is a bit like trying to convince someone to grab a R100 note from inside the mouth of a snoozing crocodile. People got mauled by ruthless...

Mind the gap.
May 29, 2009... Byline: Ian Fife PROPERTY Mind the gap SA's big property funds have landed overseas waving their chequebooks. But their targets aren't waving back. The global financial meltdown has halted lending to the property industry. Lack of funding...

FREEWORLD. SPECIALITY CHEMICALS. HOLD.
May 29, 2009... Byline: Sasha Planting FREEWORLD SPECIALITY CHEMICALS Price: R5,85 6m Mar T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R1,2bn 2009 1,36 258 55,1 5 PE: 5,52 2008 1,32 252 66,3 Sector: 7,99 t s +3,4% +2,3% -16,8% n/a Turnover, revenue and cash...

PIONEER FOODS.FOOD PRODUCERS. BUY.
May 29, 2009... Byline: Sasha Planting PIONEER FOODS FOOD PRODUCERS Price: R27,90 6m Mar T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R5,6bn 2009 8,3 437,8 170 36 PE: 8,95 2008 6,9 314,1 145 30 Sector: 10,3 t s +20% +39% +18% +20% Higher sales prices managed...

Back in the black.
May 29, 2009... Byline: Shoks Mzolo SEKUNJALO Back in the black Sekunjalo seems to have turned the corner, in style. After a spell of red-inked income statements, the Cape-based investment company's interim numbers are looking up. But judging from the share...

Win some, lose some.
May 29, 2009... Byline: Sasha Planting TIGER BRANDS Win some, lose some On the face of it, Tiger Brands' first-half results were solid. But delve a little deeper and it is clear that it wasn't an easy six months for SA's biggest consumer goods company....