Financial Mail articles from May 2010

Financial Mail archives from May 2010

Beyond the office.
May 28, 2010... Byline: Yvonne Fontyn ENTREPRENEUR Beyond the office Deciding straight after matriculating in 1998 that he wasn't an office person, Mpho Mnisi focused from the start on becoming self-employed. A finalist in the TechnoServe Believe Begin...

DID YOU HEAR?
May 28, 2010... Fred asks his wife Mary if she will go to Builders Warehouse to pick up a hinge. She agrees to go. While she is waiting for the employee to finish serving a customer, her eye alights on a beautiful bathroom tap set. When the employee...

Share the pain.
May 28, 2010... Byline: Nazmeera Moola Share the pain It's just no fun being an MP in the UK anymore. First, last year's scandals put a stop to their ability to claim for moat drainage. Then staffing allowances were cut. And now the new coalition government...

One way to ruin a country.
May 28, 2010... One way to ruin a country Effective tactics, very poor strategy that has to be the verdict on the destructive strike by transport unions, in particular the intransigent Satawu. The withdrawal of labour is a democratic right, and in the case of...

Be realistic not unduly pessimistic.
May 28, 2010... Be realistic not unduly pessimistic Sentiment and asset values in financial markets have changed sharply in recent weeks. A sliding euro, increased volatility and jittery bond markets are symptoms of investors' concerns about Europe's sovereign...

See who salutes.
May 28, 2010... Byline: BARNEY MTHOMBOTHI See who salutes South Africans, it seems, are at last falling in love with their flag. The staging of the soccer World Cup in two weeks' time has suddenly unleashed some sort of latent affection for the country...

Longstride and the Lady.
May 28, 2010... Byline: Peter Wilhelm CINEMA Longstride and the Lady Scenes, colours and action attract the eye but somehow the story is lost Robin Hood directed by Ridley Scott Lead roles: Russell Crowe Cate Blanchett Max von Sydow William Hurt Mark Strong...

Rental is right model.
May 28, 2010... Byline: Soula Proxenos Rental is right model Tighter money supply and reluctance by banks to provide mortgage finance, especially to middle-market households in SA, makes rental an attractive alternative. Yet South Africans are holding onto...

Why fly?
May 28, 2010... Byline: DUNCAN McLEOD Why fly? Why do people fly all over the world? In many cases it's simply not necessary. And with interesting new videoconferencing technologies being developed, long-haul travel may eventually become the exception in...

Another week. At home.
May 28, 2010... Another Week AT HOME Real GDP at market prices rose 4,6% on an annualised basis in Q1 from 3,2% in Q4 last year, says Stats SA. SA requires R75bn over the next five years to maintain its road network, says transport minister Sibusiso Ndebele. He...

Fewer chickens cross the sea.
May 28, 2010... Byline: David Wolpert Fewer chickens cross the sea I refer to your report Chicken takes guts (Money & Investing May 21) on Astral Foods' interim results, in which it is stated that there are too many players in the poultry sector. The...

Good legislation, no expertise.
May 28, 2010... Byline: Jack Bloom Good legislation, no expertise It would be great if the Special Investigating Unit prosecutes under the Public Finance Management Act (Cover Story May 21), but my own experience is sobering. When I laid a charge against...

Money well spent.
May 28, 2010... Byline: Claire Bisseker DEBUNKING THE ECONOMIC MYTHS Money well spent More than 200000 World Cup visitors are about to arrive. But will SA really score? WHAT IT MEANS The World Cup has forced infrastructure development Debt is manageable Even...

Have a ball and chain.
May 28, 2010... Byline: Razina Munshi and Prakash Naidoo LEGACY FOR CITIES Have a ball and chain SA cities have bent over backwards in preparation for the World Cup, doling out more than R9bn from their own budgets just on stadiums. Billions more have been...

Man of the match.
May 28, 2010... Byline: Sharda Naidoo PLANNING A WORLD CUP Man of the match You can feel it. World Cup fever is finally here. But how do you plan an event this big? speaks to 2010 Local Organising Committee CEO Danny Jordaan about a decade of managing the...

Hidden benefits.
May 28, 2010... Byline: Stan du Plessis Hidden benefits There is something paradoxical in hosting the World Cup. It cannot be compared with other capital-intensive projects in which the country can realise a decent rate of return. STAN DU PLESSIS An improved...

Time to walk the talk.
May 28, 2010... Byline: Razina Munshi and Thebe Mabanga WORLD CUP TRANSPORT Time to walk the talk Pressure on SA's World Cup transport plan has eased as the estimated number of visitors to the tournament has dropped. The national transport department...

Economic Indicators.
May 28, 2010... Byline: Razina Munshi 20 percent Institutional and financial analysts are less optimistic about global stock market trends. In May, 20% (up from 18%) said there is a higher probability of another crash, according to Sanlam Investment...

Retail sales.
May 28, 2010... Byline: Razina Munshi Retail sales The above-expectation 1% y/y rise in retail sales during March, its first rise in 14 months, has raised hopes that consumer confidence may finally be on the mend. In February, the economy's most beleaguered...

Democratic sham.
May 28, 2010... Byline: John Galatis Democratic sham Your column (Editor's Note May 14), pointing out that our flawed electoral system should have been replaced 10 years ago, is one that should be screamed from all the rooftops. It is an issue that the DA...

Blank slate, squeaky chalk.
May 28, 2010... Byline: Sasha Planting INVESTING IN ANGOLA Blank slate, squeaky chalk At street level, the begging children, potholes, traffic congestion and heaving sidewalk markets make Angola's capital, Luanda, appear to be just another city in the...

Missing a message.
May 28, 2010... Byline: Carol Paton and Thebe Mabanga COPE CONFERENCE Missing a message There's been a lot of fighting, but not over policy, so what do the winners get? WHAT IT MEANS Cope battles itself on eve of conference Old habits learnt in the ANC haunt...

New look at old ways.
May 28, 2010... Byline: Sherry Shannon Sherry FOOD PRODUCTION New look at old ways The brain behind retail chain Woolworths' Farming for the Future initiative, Kobus Pienaar, is looking to the past for inspiration to solve today's food needs. The retailer...

Lamb to the slaughter.
May 28, 2010... Byline: Ian Fife PROPERTY AUCTIONS Lamb to the slaughter Bank, buyer trapped in cruel embrace when it all went wrong WHAT IT MEANS Rapid sale meant to clear the decks But cash-strapped city makes it a nightmare I know about process and I know...

Poverty in numbers.
May 28, 2010... Byline: Shannon Sherry Poverty in numbers US$3,5bn over three years was pledged last week by US president Barack Obama to Feed the Future, the US government's global hunger and food security initiative to develop agriculture. $18,5bn The...

Shirked responsibility.
May 28, 2010... Byline: Thebe Mabanga MINE REHABILITATION Shirked responsibility SA could pay as much as R30bn to rehabilitate mines. This estimate does not include indirect costs, nor has it been adjusted for inflation. The real cost could soar to R50bn....

Laying out the tools.
May 28, 2010... Byline: Carol Paton THE RAND Laying out the tools National treasury director-general Lesetja Kganyago says he and his officials are willing to debate the strength of the rand, but it is time to talk about the nuts and bolts of policy options....

Relentless heat.
May 28, 2010... Byline: Prakash Naidoo CIPRO Relentless heat Business is growing more and more alarmed about the impact that the crisis at the Companies & Intellectual Property Registration Office (Cipro) could have on foreign investment. Last week...

Crooks stay a step ahead.
May 28, 2010... Byline: Evan Pickworth CORPORATE FRAUD Crooks stay a step ahead Harvard University's index of African governance, released in December 2009, shows that SA slipped two places to ninth position in Africa due to declining levels of safety and...

Watch how you use power.
May 28, 2010... Byline: Robert Quarshie GIMME Watch how you use power The e2 wireless electricity monitor is a simple device designed to help consumers manage their power usage and save up to 20% on their lights account. Made and distributed by global energy...

A rev for East London.
May 28, 2010... Byline: David Furlonger JOULE ELECTRIC CAR A rev for East London Optimal Energy, the SA company behind the Joule all-electric car, hopes to build the vehicle in East London. The company has signed a memorandum of understanding with the...

MTN eyes top spot.
May 28, 2010... Byline: Stafford Thomas MOBILE PAYMENTS MTN eyes top spot WHAT IT MEANS MTN Uganda catching up with M-Pesa pay service MTN applying Uganda lessons elsewhere Few Ugandans have access to a bank branch or an ATM. But most do have a cellphone...

Target talks.
May 28, 2010... Byline: Charlotte Mathews SA ELECTRICITY PLAN Target talks Some of the assumptions in the papers on a 20-year integrated resources plan (IRP) for electricity released for comment by the department of energy earlier this month are going to...

Premier agri show.
May 28, 2010... Byline: Zohra Mohamed THE PLACE TO BE OR NOT TO BE Premier agri show ROYAL SHOW Where: Pietermaritzburg When: May 28-June 6 Now in its 159th year, the Royal Show in Pietermaritzburg is billed as SA's largest mixed agricultural show and the...

Message in a bottle.
May 28, 2010... Byline: Jacqui Pile PROFILE Message in a bottle Despite his SA-sounding surname, controversial entrepreneur and genomics pioneer Craig Venter is in fact a born and bred American. Venter, now famous for his recent announcement that his team of...

Essential issues.
May 28, 2010... Byline: Prakash Naidoo QUESTIONS & ANSWERS Essential issues All members of the National Union of Mineworkers at power utility Eskom will strike this week. speaks to NUM national spokesman Lesiba Seshoka What is this strike about? Three...

QUOTE OF THE WEEK - George Osborne.(Quotation)
May 28, 2010... Byline: George Osborne QUOTE OF THE WEEK Sitting at that table of 27 [European] finance ministers, I could not help but be conscious that I represented the country with the biggest budget deficit of all. But... Britain is now a leading voice...

The scent of hope.
May 28, 2010... Byline: Larry Claasen REAL PEOPLE DOING UNREAL THINGS The scent of hope Llewellyn Jordaan Social worker/ peace broker THEUNREALITYCHECK Convinced hardened gangsters to end gang wars Committed to uplifting Lavender Hill Got government to...

Board warns chief.
May 28, 2010... Byline: Carol Paton SABC Board warns chief The SABC board, appointed less than six months ago, is at loggerheads with group CE Solly Mokoetle and has warned him for fundamentally failing to report. The board has thrice written to Mokoetle,...

But wait, there's more.
May 28, 2010... Byline: Charlotte Mathews GOLD FIELDS But wait, there's more Gold Fields, currently building the last of SA's megamines at South Deep, is insuring its future by nurturing a number of smaller projects outside SA. Apart from exploring around...

Bringing in the ounces.
May 28, 2010... Byline: Charlotte Mathews JUNIOR GOLD MINERS Bringing in the ounces After more than 100 years SA's gold industry is on the wane, now ranking as the third-largest global producer WHAT IT MEANS But SA gold output is in long-term decline...

Bulls to weather Stormers.
May 28, 2010... Byline: David Williams RUGBY Bulls to weather Stormers That was a high-quality victory for the Bulls at Orlando Stadium on Saturday, and it will ensure they are clear favourites going into the final at the same venue. The final winning margin...

A nose for truth.
May 28, 2010... Byline: Chris Thurman ART A nose for truth I AM NOT ME, THE HORSE IS NOT MINE Where: Johannesburg Art Gallery until August 1 It is no exaggeration to state that William Kentridge is the most highly regarded SA artist. He has worked with...

How wrong we can be.
May 28, 2010... Byline: Richard Steyn BOOK OF THE WEEK How wrong we can be LORDS OF FINANCE By Liaquat Ahamed 564 pages Windmill Books R169 The subject matter of this book how four central bankers handled their respective economies, and each other, at the...

Tests of nerves.
May 28, 2010... Byline: Linda Stafford GOLF Tests of nerves The yardstick of prowess in team sport is how a nation performs in the World Cup or similar major tournaments. So why do our cricketers lag our golfers, wonders Jed Martin The early exit of the SA...

I'm going east to eat.
May 28, 2010... Byline: Justice Malala FOOD FOR THOUGHT I'm going east to eat JUSTICE MALALA **** Cornuti The Cradle; Kream The Cradle of Humankind; 570 Fehrsen Street, Brooklyn Bridge Tel: (011) 659 1622; Tel: (012) 346 4642/4 *****World Cup! **** Excellent...

AFRICAN BANK - HOLD.
May 28, 2010... Byline: Evan Pickworth AFRICAN BANK CONSUMER FINANCE Price: R29,38 H1 Mar T/O (Rbn) EBT (Rbn) EPS (c) DPS (c) Mkt cap: R23,6bn 2010 7,5 1,3 113,7 85 PE: 13,05 2009 7,4 1,5 116,6 85 Sector: 11,65 t s +2% -6% -2% n/a Better sales momentum has...

Crisis watch.
May 28, 2010... Byline: Andrew McNulty Crisis watch Pessimism about economies and markets is rising again, but now many of the concerns are centred on Europe and government debt in that region. This is simply the latest phase in a global crisis that...

DIAMONDS & DOGS.
May 28, 2010... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond SABMiller A solid performance from the world's second-largest brewer shows the benefits of a product that is as handy for celebrating as it is for drowning sorrows. The point...

Takes a knock.
May 28, 2010... GOLD Takes a knock The price of gold has fallen from its record highs, reached in early May, as investors started taking profits amid ongoing concerns over the eurozone economy. A number of austerity measures implemented by European governments...

Weighed down.
May 28, 2010... OIL Weighed down The price of Brent crude oil plunged amid ongoing tension over the eurozone economy, while the strengthening dollar continued to make dollar-denominated commodities more expensive for holders of other currencies. Brent crude was...

Questions for.... Murray Bolton, Joint CE, Cargo Carriers.
May 28, 2010... Byline: David Furlonger Murray Bolton, Joint CE, Cargo Carriers Your annual results to February 2010 show turnover last year fell from R483m to R444m. What does this do to your plan for Cargo to be a R1bn group by 2014? Cargo Carriers passes...

Readying for growth.
May 28, 2010... Byline: Sasha Planting FURNITURE RETAIL Readying for growth JD Group's annus horribilis, as chairman David Sussman called it, was not that long ago 2008, to be specific. Turnover fell by 14%, from R5,2bn to R4,5bn; bad debts began to spiral...

The right risk recipe.
May 28, 2010... Byline: Stephen Cranston HEDGE FUNDS The right risk recipe Hedge fund managers are a lot more imaginative when it comes to labelling their products than unit trust managers. Instead of a prosaic, but accurate, name like Investec Equity, they...

Safety in variety.
May 28, 2010... Byline: Evan Pickworth INVESTEC Safety in variety A strategy of building new revenue streams will serve specialist bank Investec rather well, but the sickly European economy and high bad debt detract from the overall joie de vivre. While CEO...

A question of strategy.
May 28, 2010... Byline: Stafford Thomas STANLIB BALANCED FUND A question of strategy Should investment focus be on equity, bonds, cash or offshore investment, and is property still in the running? At a time of uncertainty this asset allocation challenge is...

Sold in May.
May 28, 2010... Byline: Garth Mackenzie JSE Sold in May The JSE has certainly adhered to the sell in May and go away catch phrase this year, with the market staging a 13% pullback from its highs in rand terms, and a 20% pullback in US dollar terms during...

Back to life on the JSE.
May 28, 2010... Byline: Sasha Planting LIFE HEALTHCARE Back to life on the JSE Michael Flemming claims the stress of preparing for the listing of Life Healthcare on June 8 is killing him. I don't get paid to do this, he says. It's the volatility of the JSE...

PIONEER FOODS - HOLD.
May 28, 2010... Byline: Sasha Planting PIONEER FOODS FOOD PRODUCTS Price: R38 6m Mar T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R7,6bn 2010 7,9 379 87,9 0 PE: 14,41 2009 8,3 438 169,9 36 Sector: 12,08 t s -5% -13% -48% -100% Pressure on prices and volumes...

TIGER BRANDS - HOLD.
May 28, 2010... Byline: Sasha Planting TIGER BRANDS FOOD PRODUCTS Price: R168,82 6m Mar T/O (Rbn) EBT (Rbn) EPS (c) DPS (c) Mkt cap: R32bn 2010 10,3 1,46 662,2 270 PE: 11,80 2009 11,2 1,45 631,2 245 Sector: 12,08 t s -8% +0,7% +4,9% +10,2% Turnover was down,...

Fight for market share.
May 28, 2010... Byline: Sasha Planting SABMILLER Fight for market share Much has been made of the beer wars in the SA market. It's a battle that began when Heineken audaciously withdrew SABMiller's licence to brew Amstel in 2007. It escalated when Heineken...

Investor's Notebook.
May 28, 2010... Byline: Stephen Cranston Investor's Notebook For people with only a passing interest in institutional fund management, the Alexander Forbes Large Manager Watch (LMW) is the best place to start. A lot of people complain about the limited value...

The root of corruption.
May 28, 2010... Byline: Paul Hoffman, The root of corruption If the massive corruption in the arms deals is not addressed properly, there is little hope of conquering this endemic problem Your timely and comprehensive coverage of the scandalous corruption...

The circus goes on and on.
May 28, 2010... Byline: Alfred Seema The circus goes on and on I have given up trying to understand the politics of this country. Personalities and fame unfortunately come before the needs and struggles of the people. You just have look at the lackeys...

Who's fooling who?
May 28, 2010... Byline: Cliff Buchler Who's fooling who? What a poignant moment to see President Jacob Zuma wax emotional about the sorry state of a neglected informal settlement, and that he wants answers to the reason for this deterioration. But who is he...

CIC HOLDINGS - BUY.
May 28, 2010... Byline: Larry Claasen CIC HOLDINGS BUSINESS SUPPORT SERVICES Price: 230c Yr Feb T/O(N$bn) EBT(N$m) EPS (c) DPS (c) Mkt cap: R580m 2010 2,53 95,1 25,6 7 PE: 9,96 2009 2,50 48,9 20,6 5,5 Sector: 12,03 ts +12% +94,4% +24,3% +27,3% The...

HOSKEN CONSOLIDATED - HOLD.
May 28, 2010... Byline: Larry Claasen HOSKEN CONSOLIDATED EQUITY INVESTMENT INSTRUMENT Price: R79,80 Yr Mar T/O (Rbn) EBT (Rbn) EPS (c) DPS (c) Mkt cap: R10,56bn 2010 8,45 1,23 295,4 PE: 27,75 2009 7,43 1,64 254,3 Sector: 3,63 t s +13,7% -25,4% +16,2% The...

The ugly duckling - SPESCOM.
May 28, 2010... Byline: Larry Claasen THE UGLY DUCKLING SPESCOM 1. Cash positive 2. Revenue up 3. Share ignored 4. Dividend paid 5. Profitable The technology group's revenue did drop a little from R168m to R163m but overall it showed a steady improvement for...

About that cash ...
May 28, 2010... Byline: Charlotte Mathews RAISING CAPITAL About that cash... Shareholders in many smaller mining companies are having to swallow a bitter pill support management's call for cash or watch their investments deteriorate. There's been a...

Rebirth.(Company overview)
May 28, 2010... Byline: Kate Thompson Rebirth Bold developers spark the rejuvenation of Johannesburg's CBD WHAT IT MEANS Stimulating investment and development in Johannesburg Private investment follows JDA intervention [These developers] are risk takers and...

An upswing in activity.
May 28, 2010... Byline: Kate Thompson An upswing in activity Investment trends in inner city Johannesburg in the past decade WHAT IT MEANS The Johannesburg inner city region is the single biggest contributor to the economy of the city Johannesburg's inner...

Halala! Jo'burg is changing.(Awards list)
May 28, 2010... Byline: Kate Thompson WINNERS Halala! Jo'burg is changing The 2010 winners of the Halala Jo'burg awards were announced on May 12, at the culmination of a full-day seminar on inner city development held in Jo'burg. Living Jo'burg Within the...

On a rise.
May 28, 2010... Byline: Andrew McNulty On a rise Leading research firms do well in big sectors, some give greater attention to smaller firms WHAT IT MEANS: Fund managers rank analysts and firms. Global perspectives are important. Market downturns and the...

How the survey was done.
May 28, 2010... Byline: Andrew McNulty METHODOLOGY How the survey was done As in previous years, all the rankings and other findings in this survey are based entirely on a confidential poll of the opinions of the SA brokerage firms' domestic institutional...

Progress.
May 28, 2010... Byline: Stephen Cranston Progress Different leadership styles are evolving in the world of fund management WHAT IT MEANS: New models for chief investment officers. Inhouse boutiques can compete. There was once quite a simple management...

ALEXANDER FORBES SA MANAGER WATCH. BEST INVESTMENT VIEW. INVESTMENT DATA TO THE END OF MARCH 2010.
May 28, 2010... ALEXANDER FORBES SA MANAGER WATCH BEST INVESTMENT VIEW Objective: The portfolios are balanced (multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and are confined to investing in SA...

ALEXANDER FORBES GLOBAL MANAGER WATCH. BEST INVESTMENT VIEW. INVESTMENT DATA TO THE END OF MARCH 2010.
May 28, 2010... ALEXANDER FORBES GLOBAL MANAGER WATCH BEST INVESTMENT VIEW Objective: The portfolios are balanced (multiple asset class) portfolios, subject to the restrictions imposed by Regulation 28 of the Pension Funds Act and represent the managers' best...

Not quite elite returns.
May 28, 2010... Byline: Stephen Cranston HEDGE FUNDS Not quite elite returns The proposed changes to regulation 28 of the Pension Funds Act were a disappointment to the hedge fund business. There was no explicit reference to hedge funds at all. But there is...

Left to find a niche.
May 28, 2010... Byline: Stephen Cranston FEATURE MANAGER: OLD MUTUAL SELECT EQUITY Left to find a niche It was back in 2006 when Neil Brown and Richard Hasson were given the chance to start their own business. They had financial backing to set up their...

Child health in numbers.
May 21, 2010... Byline: Sasha Planting Child health in numbers 89% of women have their infants delivered by skilled health workers, but 2500 mothers die during or after childbirth each year. 67 in every 1000 SA children die of preventable causes before...

Did you hear?
May 21, 2010... A little old lady answers a knock on the door one day, only to be confronted by a well-dressed young man carrying a vacuum cleaner. Good morning, says the young man. If I could take a couple of minutes of your time, I would like to...

Did you hear prizewinners.
May 21, 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...

Wages of a rand peg.
May 21, 2010... Byline: NAZMEERA MOOLA Wages of a rand peg Several years ago South Africans were horrified at the thought that the rand was in danger of reaching 7-11 or seven to the US dollar and 11 to the pound. This would leave the rand excessively weak....

The risk of linking disparate countries.
May 21, 2010... The risk of linking disparate countries A global financial crisis started in 2007, and continued for at least another two years. By last year, it seemed to have stabilised, but much of the world had slipped into a recession. Most economies are...