Financial Mail articles from May 2012

Financial Mail archives from May 2012

West Africa Cable System in numbers.
May 25, 2012... Byline: Larry Claasen West Africa Cable System in numbers 14500km is the length of the West Africa Cable System (Wacs), an undersea telecommunications submarine cable that stretches from London to Yzerfontein, on the SA west coast. 14...

Investor's Notebook.
May 25, 2012... Byline: Stephen Cranston Investor's Notebook Should private equity and hedge funds continue to be lumped together? I keep coming back to this issue both as a journalist and as a trustee. There seems to be a doughty predictability to private...

DID YOU HEAR?
May 25, 2012... Did You Hear?'s Facebook buddy posted this interesting thought on his wall: If a male player is called a womaniser, what do we call the female equivalent? Maniser? The post attracted several suggestions including maleniser and manuser. ...

DID YOU HEAR? YOU COULD WIN.
May 25, 2012... YOU COULD WIN by sending news snippets, wit and gossip to Did You Hear? Published entries win R200. Please include your name, address and telephone number or you will not be eligible. Send entries to:fmdidu@fm.co.za * BDFM employees are not...

Taking stock.
May 25, 2012... Byline: Nazmeera Moola Taking stock Global markets have lost about US$4trillion in value in recent weeks mainly due to the renewed uncertainty around Greece. Unfortunately, the news flow is not going to turn positive any time soon. The next...

Youth subsidy is an imperative.
May 25, 2012... Youth subsidy is an imperative In its 2011 discussion paper, Confronting youth unemployment: policy options for SA, national treasury provides a chilling statistic. According to treasury, SA makes up just 0,5% of the global labour force, yet the...

JPMorgan's loss is a lesson for all.
May 25, 2012... JPMorgan's loss is a lesson for all JPMorgan's trading loss of US$2bn has humbled another imperious CE. It has strengthened the hand of politicians and regulators calling for tougher rules for banks and again reminded investors of the risks in...

A Greek contagion.
May 25, 2012... Byline: BARNEY MTHOMBOTHI A Greek contagion The world is in a bloody mess. The Greeks, who gave us Plato, Aristotle, if not civilisation itself, are about to give us a collective heart attack. They could take us all to purgatory where...

EXECUTIVE MOVES.
May 25, 2012... Leon Crouse has been appointed as a nonexecutive director on the MMI board. He has also been appointed to the boards of Momentum Group and Metropolitan Life. Crouse is the group finance director of Remgro. Arthur Taute, a board member of...

TRANSFER PRICING. Muddy waters indeed.
May 25, 2012... Byline: Ruan Jooste TRANSFER PRICING Muddy waters indeed Recent amendments to SA transfer pricing (TP) rules will have far-reaching effects on cross-border transactions between related parties. The legislation was promulgated on April 1 to...

Common approach.
May 25, 2012... Byline: NEIL RANKIN Common approach In the past few weeks there has been a lot of argument about government's proposed youth wage subsidy, and even physical conflict. A number of concerns and claims have been made, but which are valid? Wage...

Cellphone scuffle.
May 25, 2012... Byline: DUNCAN McLEOD Cellphone scuffle Extraordinary events took place behind the scenes in SA's cellphone industry in the past week. Alan Knott-Craig played his first hand as Cell C CEO, slashing prepaid voice prices, and Vodacom reacted...

Another Week.
May 25, 2012... Another Week AFRICA PetroSA partners with China's Sinopec to build its stalled Mthombo refinery at Coega, estimated to cost US$10bn and produce 400 000 barrels/day. US president Barack Obama announces a US$3bn plan to boost food security and...

FM FOX.
May 25, 2012... Chris Mahlangu, one of two farm workers charged with the murder of white supremacist AWB leader Eugene Terre'blanche in 2010, was found guilty while his co-accused, Patrick Ndlovu, was acquitted. Israeli goods produced in the occupied...

COMINGS & GOINGS.
May 25, 2012... COMINGS & GOINGS Stephen PellConstruction group Aveng has appointed Pell as an executive director. He has held senior executive positions at Murray & Roberts, Stocks Building Africa and Stefanutti Stocks. Sarath FonsekaSri Lankan...

Freedom at the fuel pump.
May 25, 2012... Byline: Lise Pretorius FUEL INDUSTRY REGULATION Freedom at the fuel pump Record petrol prices raise the question of whether deregulation of the industry would create more competition and bring down prices The only thing that could possibly...

Pumping the profits.
May 25, 2012... Byline: Lise Pretorius SASOL Pumping the profits A large portion of fuel sold inland is from Sasol's Secunda plant, but the price includes pipeline costs WHAT IT MEANS Sasol benefits from status quo Deregulation may not help consumers Oil...

Regulation 101.
May 25, 2012... Byline: Lise Pretorius Regulation 101 SA's regulated petrol price at the pump is made up of domestic and international components and is calculated by the Central Energy Fund (CEF) on behalf of the department of energy. The international...

So slow to go green.
May 25, 2012... Byline: David Furlonger CLEAN FUELS So slow to go green It will cost the SA petroleum industry at least R38bn at present prices over the next five years to gear up for the latest generation of clean fuels. That is a drop in the ocean...

Understanding inflation.
May 25, 2012... Byline: Philip Mohr Understanding inflation One of the first things economics students are (or at least should be) taught is to distinguish between levels and rates of change. One of the areas in which confusion between the two is...

What's wrong with Wonga?
May 25, 2012... Byline: Gerald Mallinick What's wrong with Wonga? I refer to the article Wonga(ful) idea (Fox May 18). If your journalist Larry Claasen is correct that Wonga CEO Kevin Hurwitz envisages charging R250 for a 10-day loan of R1 000 in respect of...

MOTOR INDUSTRY. European blues.(Industry overview)
May 25, 2012... Byline: David Furlonger MOTOR INDUSTRY European blues Europe's economic uncertainty will continue to dog SA exports of built-up vehicles to that continent for the immediate future, says Honda Motor Europe president Manabu Nishimae. ...

MINING SISHEN RIGHTS . Advantage ICT.
May 25, 2012... Byline: Lindo Xulu MINING SISHEN RIGHTS Advantage ICT Both SIOC and Kumba have made an application for leave to appeal against the finding that certain portions of the warrant were not sufficiently precise Two important judgments were handed...

AGRICULTURE WHEAT . Reduced to chaff.
May 25, 2012... Byline: Shannon Sherry AGRICULTURE WHEAT Reduced to chaff Wheat farmers have asked for tariffs on wheat imports to be revised as the area planted in SA has fallen to its smallest in more than 100 years. The department of agriculture's crop...

Another double standard?
May 25, 2012... Byline: J van Heerden Another double standard? Your article Big talk and small print (Features May 11) refers. Standard Bank has not withdrawn its adverts on free products and wonderful service. It still advertises no commission or fees. To...

BEE SHARE STRUCTURES. Brimstone's rethink.
May 25, 2012... Byline: Marc Hasenfuss BEE SHARE STRUCTURES Brimstone's rethink WHAT IT MEANS Dual share: scheme may be changed Result would be greater liquidity One of the few remaining N-share structures left on the JSE could be dismantled. At an AGM...

DURBAN TRANSPORT. U-turn indicated.
May 25, 2012... Byline: Shaun Harris DURBAN TRANSPORT U-turn indicated For years Durban's municipal bus service has been in a mess. City manager S'bu Sithole accepts this, earlier this month telling a city council meeting that the bus service had been...

FUEL CELLS. Hope for a new market.
May 25, 2012... Byline: Charlotte Mathews FUEL CELLS Hope for a new market Fuel cell technology took a step forward earlier this month when Anglo Platinum launched a prototype underground locomotive powered by platinum fuel cells. A fuel cell converts...

MUNICIPAL INFRASTRUCTURE. Wasting the future.
May 25, 2012... Byline: Razina Munshi MUNICIPAL INFRASTRUCTURE. Wasting the future Mismanagement and an inability to spend budgets are holding back much-needed infrastructure upgrades WHAT IT MEANS: Lack of investment has created acute backlog. Skills...

101 - Shadow banking.
May 25, 2012... Byline: Maarten Mittner What is shadow banking? It refers to financial activities outside the regulated banking system. Hedge funds are a good example, but it includes money market funds and special investment vehicles, such as credit...

CORPORATE BOND MARKET. Keeping powder dry.
May 25, 2012... Byline: Stafford Thomas CORPORATE BOND MARKET Keeping powder dry SA corporates are under fire for cutting debt and building up a huge cash pile R520bn at last count. It may not help promote economic growth but strategically, corporate SA...

DEAL OF THE WEEK. AVI steps into Green Cross.
May 25, 2012... Byline: Stafford Thomas DEAL OF THE WEEK. AVI steps into Green Cross Simon Crutchley CEO AVI THE LOWDOWN: A unique opportunity to add SA's leading comfort footwear brand to AVI's successful Spitz premium footwear and Kurt Geiger men's...

ENTREPRENEUR. Logical extension.
May 25, 2012... Byline: Larry Claasen ENTREPRENEUR Logical extension When Gerald Naidoo started his technology consulting business, Logikal Consulting, he thought it would be a breeze. He envisaged a work week that lasted only three days, allowing him to...

GIMME. Model in a business suit.
May 25, 2012... Byline: Matiba Mutheiwana GIMME Model in a business suit Ultrabooks, the slick thinner siblings of laptops, are quickly taking their rightful place in the business world. The uptake comes as more businesses shift towards a more mobile...

PRIVATE EQUITY FUNDS. Small deals, record year.
May 25, 2012... Byline: Stephen Cranston PRIVATE EQUITY FUNDS Small deals, record year Total funds under management in SA private equity reached a record R115,8bn in December 2011. This makes it more than three times larger than the domestic hedge fund...

PROFILE. Drawing a line.
May 25, 2012... Byline: Lindo Xulu PROFILE Drawing a line In the wake of the 2008 financial crisis, politicians have been determined to step up regulation over that part of the financial sector some regard as the main driver of the casino economy. And it's...

LISTED PROPERTY. Wheeling and dealing.
May 25, 2012... Byline: Joan Muller LISTED PROPERTY Wheeling and dealing The flurry of new listings, mergers and acquisitions in the JSE's R167bn listed property sector continues unabated. The latest round of corporate action involves Capital Property Fund,...

Interivew - Koos Pretorius, Federation for a Sustainable Environment. QUESTIONS & ANSWERS. Look downstream.
May 25, 2012... Byline: Charlotte Mathews QUESTIONS & ANSWERS Look downstream Federation for a Sustainable Environment's Koos Pretorius tells why Exxaro is under fire for draining a wetland Exxaro says its Leeuwpan coal mine applied for and was granted...

Move to stabilise rooibos market.
May 25, 2012... Byline: Shannon Sherry Move to stabilise rooibos market Rooibos tea is brewing up a storm globally, but its Cederberg, Western Cape-based growers are stuck in a time warp, preventing the industry from taking full advantage of the demand. ...

HOUSING. Fewer build.
May 25, 2012... Byline: Joan Muller HOUSING Fewer build The number of South Africans building new homes has tumbled by 60% over the past five years, reflecting continued sluggish demand for residential property. Home building data released by Stats SA last...

WHERE ARE THEY NOW? Life after the council.
May 25, 2012... Byline: Shaun Harris WHERE ARE THEY NOW? Life after the council Many Durban residents look back on Sybil Hotz's four-year term as mayor in the early 1980s with nostalgia. It was a time when the city council got things done, not least getting...

Interview - Riason Naidoo, director of the Iziko SA National Gallery (Isang). 7 QUESTIONS FOR ...
May 25, 2012... Byline: Prakash Naidoo Riason Naidoo, director of the Iziko SA National Gallery (Isang) FM: Why are our art collections important? Naidoo Art acts as a critical mirror of society and a visual archive. FM: What are the greatest threats to...

ART GALLERIES. Priceless heritage at risk.
May 25, 2012... Byline: Prakash Naidoo ART GALLERIES Priceless heritage at risk Even as a new generation of art lovers discovers public galleries, poor funding poses a threat, writes A country's public art collection should stand as a representation of its...

ART REVIEW. Women object.
May 25, 2012... Byline: Chris Thurman ART REVIEW Women object Not Me Not Mine; Faena Where Standard Bank Gallery, Johannesburg Until June 9 In a protest-obsessed Johannesburg, the twin exhibitions sharing the split-level space at the Standard Bank Gallery...

BOOK OF THE WEEK. Less stuff is more.
May 25, 2012... Byline: Richard Steyn BOOK OF THE WEEK Less stuff is more Prosperity Without Growth Economics for a Finite Planet By Tim Jackson 276 pages Earthscan Prof Tim Jackson's short and brilliantly argued book addresses head-on the biggest dilemma of...

CINEMA. Bad sex.
May 25, 2012... Byline: Peter Wilhelm CINEMA Bad sex Brilliantly crafted and with a fine lead performance, Shame is still a difficult movie to recommend Shame Directed and co-written by Steve McQueen Lead roles: Michael Fassbender Carey Mulligan James Badge...

FOOD FOR THOUGHT. March of progress.
May 25, 2012... Byline: Jutice Malala FOOD FOR THOUGHT March of progress J USTICE MALALA 5/5 Tashas le parc Shop UM 29A Hyde Park Shopping CentreCorner Jan Smuts Avenue and William Nicol Drive Tel: (011) 325-5008 5/5 Madiba 4/5 Excellent 3/5 Okay 2/5 Zuma...

THE PLACE TO BE OR NOT TO BE. Bumpy road to bliss.
May 25, 2012... Byline: Brendan Ryan THE PLACE TO BE OR NOT TO BE Bumpy road to bliss FATEHPUR SIKRI Where: Agra, India Mood: Awe inspiring Everybody has heard of the Taj Mahal, India's premier tourist attraction in the city of Agra. But an architectural...

RUGBY. Pining for Pienaar.
May 25, 2012... Byline: David Williams RUGBY Pining for Pienaar Remember Ruan Pienaar? It seems so long ago that he was darting about in a Sharks and Springbok jersey, playing in just about every position from number 9 to number 15. In fact he left SA rugby...

Interview - Chris Venter, CEO of listed agriculture company Afgri. WONDERFUL WEEKEND. Fielding family.
May 25, 2012... Byline: Shannon Sherry WONDERFUL WEEKEND Fielding family Chris Venter, CEO of listed agriculture company Afgri, talks to Before joining Afgri I spent three years in New York managing Absa's operations in Latin America. When you take your...

BRAND VALUES. Breakthrough.
May 25, 2012... Byline: David Furlonger BRAND VALUES. Breakthrough At long last, an all-African brand has made it into the global big time MTN has become the first African company to crack the list of the world's 100 most valuable brands. The...

ADVERTISING SPENDING. Outdoor outdated.
May 25, 2012... Byline: Zweli Mokgata ADVERTISING SPENDING Outdoor outdated Official spending figures for outdoor advertising do not accurately reflect the size of the SA out-of-home market, says Primedia Unlimited group CEO Ken Varejes. He says...

EXPERIENTIAL MARKETING. New priorities.
May 25, 2012... Byline: Zweli Mokgata EXPERIENTIAL MARKETING New priorities New VWV CEO Kingsley Potter wants the brand experience agency to grow its international presence, particularly in Africa. The former chief marketing officer of SA Tourism recently...

AFRICAN BANK INVESTMENTS. Earnings still evaporating.
May 25, 2012... Byline: Maarten Mittner AFRICAN BANK INVESTMENTS Earnings still evaporating Shareholders at African Bank Limited (Abil) are unhappy about the company's subdued interim earnings growth of 25% to March at a time when the unsecured lending...

ADCORP/KELLY GROUP. Labour law games.
May 25, 2012... Byline: Stafford Thomas ADCORP/KELLY GROUP Labour law games One thing certain to put investors off is uncertainty. Employment market players Adcorp and Kelly Group have had more than their fair share of it since 2010 the future of labour...

BARLOWORLD. Mining holds the key.
May 25, 2012... Byline: Stafford Thomas BARLOWORLD Mining holds the key Prior to buying Bucyrus, Caterpillar could meet a quarter of the mining industry's needs. Now it can meet three quarters CLIVE THOMSON Barloworld remained firmly on a recovery path in...

CAPESPAN. Management shake-up.
May 25, 2012... Byline: Marc Hasenfuss CAPESPAN Management shake-up It's hardly surprising that minority shareholders in unlisted fruit and logistics business Capespan have been clamouring for clarity from directors as to where the biggest potential in the...

CIPLA MEDPRO. Is it up for grabs?
May 25, 2012... Byline: Shaun Harris CIPLA MEDPRO Is it up for grabs? The company has one of the best business models in SA but has not been great on disclosure PETER ARMITAGE Does Cipla Medpro's cautionary announcement on May 9 spell the end of this...

Diamond: Richemont. Dog: Eastern Platinum.DIAMONDS & DOGS.
May 25, 2012... Byline: Jamie Carr DIAMONDS & DOGS Diamond Richemont The gulf is widening between those who are happy to drop a couple of hundred grand of grown-up currency on a watch and those who are barely able to keep up with the mortgage repayments....

HOLDSPORT. On a good wicket.
May 25, 2012... Byline: Stafford Thomas HOLDSPORT On a good wicket Sports goods and outdoor equipment retailer Holdsport shone in its first year as a listed company, lifting its headline EPS 27,8% in the 12 months to February. This built on the small cap's...

INTERNATIONAL FINANCIAL REPORTING STANDARDS. A challenge for mining.
May 25, 2012... Byline: Charlotte Mathews INTERNATIONAL FINANCIAL REPORTING STANDARDS A challenge for mining Many smaller US companies see no point in using global accounting standards because they don't expect to raise capital internationally BOB GARNETT...

LISTED PROPERTY. New light on new listings.
May 25, 2012... Byline: Joan Muller LISTED PROPERTY New light on new listings Recently listed property stocks like Investec Property Fund, Rebosis Property Fund and Dipula Income Fund have delivered better-than-expected maiden results this month. That...

PPC. Cement set for price war?
May 25, 2012... Byline: Razina Munshi PPC Cement set for price war? SA's cement market may have been affected by the building industry collapse, but industry sales grew by 10% for the five months to February, according to PPC. The increase has been...

SAPPI/MONDI. Make or break strategy.
May 25, 2012... Byline: Stafford Thomas SAPPI/MONDI Make or break strategy Investing in Sappi takes a high level of conviction but after a decade of setbacks it is back on a recovery path. The make or break of Sappi's recovery and its future hangs on a...

SOVEREIGN FOODS. Exposed to the elements.
May 25, 2012... Byline: Shannon Sherry SOVEREIGN FOODS Exposed to the elements Poultry producer Sovereign Foods kept costs in check for the year to February as it grew earnings before tax by 55% to R55,4m. The group, which declined the FM's requests for...

VODACOM. Not-so-hot data.
May 25, 2012... Byline: Larry Claasen VODACOM Not-so-hot data Vodacom shareholders will have to wait a little longer to see if the mobile operator's fast-growing data services will become its major growth driver. Voice revenues for the financial year to...

CORONATION FUND MGRS - ASSET MANAGERS.
May 25, 2012... Byline: Marc Hasenfuss CORONATION FUND MGRS ASSET MANAGERS Price: R26,18 6m Mar T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R8,33bn 2012 912 450 94 95 PE: 13,4 2011 821 440 94,9 80 Sector PE: 11,5 t s +11% +2% -1% +19% The interims spooked...

INVESTEC - INVESTMENT SERVICES.
May 25, 2012... Byline: Maarten Mittner INVESTEC INVESTMENT SERVICES Price: R41,45 Yr Mar NII* (GBPm) EBT (GBPm) EPS (c) DPS (c) Mkt cap: R24,8bn 2012 699 257,6 31,8 17 PE: 13 2011 681,4 327,9 43,2 17 Sector PE: 14 t s +14% -21,4% -26% With constant crises...

MAZOR - BUILDING MATERIALS & FIXTURES.
May 25, 2012... Byline: Razina Munshi MAZOR BUILDING MATERIALS & FIXTURES Price: 170c Yr Feb T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R206,5m 2012 233,4 7,76 4,83 1,6 PE: 41,98 2011 186,8 10,9 8,16 2,8 Sector PE: 270,93 t s +25% -29% -41% -43%...

PIONEER FOODS - FOOD PRODUCER.
May 25, 2012... Byline: Shannon Sherry PIONEER FOODS FOOD PRODUCER Price: R57,49 Yr Mar T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R13,2bn 2012 9,2 404 129 44 PE: 14,43 2011 8,3 619 231,4 40 Sector PE: 15,81 t s +11% -35% -44% +10% Shifting consumption...

TSOGO SUN - LEISURE AND GAMING.
May 25, 2012... Byline: Zweli Mokgata TSOGO SUN LEISURE AND GAMING Price: R17,91 Yr Mar T/O (Rbn) EBT (Rbn) EPS (c) DPS (c) Mkt cap: R21,18bn 2012 9,03 2,60 140,2 60 PE: 17,87 2011 6,48 1,14 97,7 50 Sector PE: 16,14 t s +39% +108% +44% +20% Hotel occupancies...

No-frills approach.
May 25, 2012... Byline: Marc Hasenfuss RICHEMONT No-frills approach The numbers show that the company is prudent with cash, is wary of debt and invests in things it knows well WHAT IT MEANS: Chinese prospects remain promising Focus on cash flow and dividends...

COAL. Will pick up.
May 25, 2012... COAL Will pick up The Richards Bay coal price has tumbled further as fears over slowing demand in Europe as well as rising supplies across the region and at Chinese power plants placed downside pressure on prices. Demand is expected to pick up...

ECONOMIC INDICATORS.
May 25, 2012... 134,5 points The Reserve Bank's leading indicator of economic activity increased by 0,1% y/y to 134,5 points in March compared with a 0,2% decline in February. The indicator received a boost from a rise in job adverts. The indicator also...

Market watch.
May 25, 2012... Byline: Andrew McNulty Market watch IT company Datatec has had two good years. Its revenues and underlying earnings have grown fast, and the share has been favourably rerated. Since the beginning of 2010, the price has risen by almost 70%,...

BASE METALS . Under pressure.
May 25, 2012... BASE METALS Under pressure Base metals prices remained under pressure over the past week as the stronger dollar weighed on the complex. The declines across industrial metal prices have been slow and steady, with copper down 7% and aluminium down...

OIL . Fears put to rest.
May 25, 2012... OIL Fears put to rest The oil price is down 11% from March's highs due to factors that include concerns about slowing demand and improving supply conditions. Opec's production rose sharply in April after Saudi Arabia boosted output to 10m...

TECHNICAL ANALYSIS. Range bound.
May 25, 2012... Byline: Garth Mackenzie TECHNICAL ANALYSIS Range bound The gold price has spent the past nine months consolidating after its sharp rally to US$1900 in the third quarter of 2011. Recently the price of the metal has been a topical talking...

STOCK TAKE - FACEBOOK.
May 25, 2012... Byline: Larry Claasen STOCK TAKE FACEBOOK 1. Cash positive + 2. Revenue up + 3. Tradability + 4. Dividend paid - 5. Profitable + Is it a good idea to buy a holding in a social media company whose CEO can never be fired because he effectively...

WINNERS & LOSERS.
May 25, 2012... WINNERS & LOSERS WINNER Gwede Mantashe Treasury welcomed the ANC secretary general's call for government to be allowed to govern and his warning that delays to infrastructure policy implementation and a youth wage subsidy hurts SA's credit...

Rosy outlook.
May 25, 2012... Byline: Lisa Witepski Rosy outlook With a new MD at the helm, this firm is eyeing opportunities in the rest of Africa WHAT IT MEANS: Has a strong order book for the year Unsurpassed levels of service a priority With a new leader at the helm...

Visionary led.
May 25, 2012... Byline: Jenny de Wet Visionary led Further advances mark another revolutionary stage in how technology is being adapted to changing lifestyles WHAT IT MEANS: Trials on the use of this technology are under way globally and in the SA market...

METHODOLOGY. Behind the process.
May 25, 2012... Byline: Andre McNulty METHODOLOGY Behind the process All the rankings and other findings in this survey are based entirely on a poll by confidential questionnaire of the opinions of the SA brokerage firms' domestic institutional clients. ...

More skills.
May 25, 2012... Byline: Andrew McNulty More skills Despite all the odds, the industry shows resilience and signs of growth WHAT IT MEANS: More sell-side analysts cover SA The best analysts still keep their leads Judging by the number of broking firms and...