Financial Mail articles from October 2010

Financial Mail archives from October 2010

Interview - Jens Montanana, CEO of Datatec - 9 QUESTIONS FOR ...
October 29, 2010... Byline: Larry Claasen Jens Montanana, CEO of Datatec You have made some acquisitions but have ruled out a large one. Why? We've never done large deals. Large mergers are the most difficult to integrate. We prefer to take over medium to small...

ENTREPRENEUR. Hand in hand for brands.
October 29, 2010... Byline: Lise Pretorius ENTREPRENEUR Hand in hand for brands Seven out of 10 new businesses in SA fail within the first three years because of a lack of financial and management experience. The Black Entrepreneurship Initiative, a project of...

FAMOUS BRANDS. Messy, in a good way.
October 29, 2010... Byline: Sasha Planting FAMOUS BRANDS Messy, in a good way Things are about to get messy at Famous Brands' subsidiary Steers. Well, that's what its latest advertising campaign says, anyway. The burger chain, which has received some management...

VALUE GROUP - TRANSPORTATION SERVICES.
October 29, 2010... Byline: Sasha Planting VALUE GROUP TRANSPORTATION SERVICES Price: R3,66 6m Aug T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R726,9m 2010 740,7 41,1 13,7 6 PE: 7,69 2009 635 53,0 19,4 6 Sector: 12,01 t s 17% -22% -29% One-off BEE equity costs of...

VERIMARK - BROADLINE RETAILERS.
October 29, 2010... Byline: Sasha Planting VERIMARK BROADLINE RETAILERS Price: R1,20 6m Aug T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R137m 2010 200 17 9,8c PE: 3,72 2009 129 (11) (10,1) Sector: 18,9 t s +56% n/a n/a New management, new products and revived...

OASIS CRESCENT - ALT-X.
October 29, 2010... Byline: Stephen Cranston OASIS CRESCENT ALT-X Price: 1250c 6m Sept Rev (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R468m 2010 28,0 18,4 49,5 49,5 PE: 11,7 2009 26,1 17,2 50,8 50,8 Sector: 10,6 t s +7% +7% -3% -3% The fund has a well diversified...

DID YOU HEAR?
October 29, 2010... A man is gravely ill, lying in a hospital bed. He asks his wife to come closer so he can tell her something. Once his wife is close to him, he says: My dear, you have been with me through thick and thin. She responds: That is a vow I took when I...

YOU COULD WIN.
October 29, 2010... YOU COULD WIN by sending news snippets, wit and gossip to Did You Hear? Published entries win R200. Please include your name, address and telephone number or you will not be eligible. Send entries to:fmdidu@fm.co.za * BDFM employees are not...

Held to account.
October 29, 2010... Byline: NAZMEERA MOOLA Held to account A colleague's cleaner faced the devastating loss of her 23-year-old son from TB last weekend. As she tried to deal with her grief, she attempted to organise a funeral in the Eastern Cape while she was...

World economy needs co-operation.
October 29, 2010... World economy needs co-operation The rhetoric in the communique issued after the summit of G20 leaders in Korea last weekend was difficult to fault. The group's finance ministers and central bank governors met with a sense of urgency to address...

Credibility starts, and ends, at home.
October 29, 2010... Credibility starts, and ends, at home Those wise in the ways of doing business in the rest of Africa know that the easy part is to identify a market and appoint a management team. The real homework that has to be done is less obvious. Is it easy...

Bush's slow poison.
October 29, 2010... Byline: BARNEY MTHOMBOTHI Bush's slow poison Americans go to the polls next week in an election seen as a referendum on Barack Obama two years after he swept into office amid a wave of emotions and euphoria, a historic victory that held the...

End this oligopoly.
October 29, 2010... Byline: ANOOSH ROOPLAL End this oligopoly In the wake of the financial crisis, the highly concentrated global audit industry is again on the agenda of official think-tanks. Concern about the dominance of the Big Four has been voiced recently...

Perfect for purpose.
October 29, 2010... Byline: DUNCAN McLEOD Perfect for purpose When Apple announced the iPad tablet computer earlier this year, some analysts wondered if that spelt the end for Amazon.com's Kindle e-reader. On the contrary, the next-generation Kindle is flying...

Another Week.
October 29, 2010... Another Week AT HOME Cabinet adopts a new growth path for the country that places employment at the centre of government economic policy. Its target is to create 5m jobs in the next 10 years, to reduce unemployment from 25% to 15%. It is based...

Bites.
October 29, 2010... Byline: Linda Stafford Bites South meets north for a wine, food, music and art extravaganza when Stellenbosch winelands' finest descend on Gauteng for a celebration of the good things in life. Stellenbosch at Summer Place takes place on the...

Resting on laureates.
October 29, 2010... Byline: Ayanda Mtshali Resting on laureates Justice Malala states that SA [is] a state with three Nobel peace prize winners (Food For Thought October 22). This is not the case. We've had four previous winners in this category: Albert Luthuli,...

ECONOMIC POLICY. Pulling together.
October 29, 2010... Byline: Carol Paton ECONOMIC POLICY. P ulling together Government seems to have settled the debate on the direction of economic policy with job creation at its heart, but politicians are still low on solutions WHAT IT MEANS: Private sector...

COMPANIES. Prudence the watchword.
October 29, 2010... Byline: Andrew McNulty COMPANIES Prudence the watchword Government's new growth plan and this week's medium-term policy statement should be seen as positive for companies and investors on several levels. It could lead to stronger and more...

CAPITAL CONTROLS. Radical shift for some.
October 29, 2010... Byline: Andrew McNulty CAPITAL CONTROLS Radical shift for some The new measures to reduce exchange and capital controls are significant for investors, international and domestic companies and individuals. There will still be some...

MINIBUDGET. In safe hands.
October 29, 2010... Byline: Claire Bisseker MINIBUDGET In safe hands Fears that national treasury is losing its iron grip on government finances will be allayed by this year's minibudget WHAT IT MEANS: Debt and spending growth to be cut. Minibudget is...

Terms of (currency) trade.
October 29, 2010... Byline: Philip Mohr Terms of (currency) trade The media has carried many excellent reports and contributions on currencies and exchange rates in recent weeks. Unfortunately some participants, including respected economists and institutions,...

ECONOMIC INDICATORS.
October 29, 2010... 7 percent FNB's house price index revealed that pricing has slowed slightly. In the third quarter, average house prices increased by 7% y/y, down from 11,3% previously. FNB expects prices to increase by 6,4% in 2010, after which it says prices...

Unemployment.
October 29, 2010... Byline: Razina Munshi Unemployment SA's official unemployment rate for the third quarter of 2010 is 25,3%. This is fractionally higher than the 25,2% of the second quarter, but is substantially worse than the 24,4% recorded during the third...

THE UGLY DUCKLING - ELLIES.
October 29, 2010... Byline: Larry Claasen THE UGLY DUCKLING ELLIES 1. Cash positive + 2. Revenue up + 3. Share ignored + 4. Dividend paid + 5. Profitable + The electronics goods group produced respectable numbers in its results for the year to end-April. Revenue...

COMPANIES ACT. More delays on the cards.
October 29, 2010... Byline: Prakash Naidoo COMPANIES ACT More delays on the cards SA business and corporate lawyers are growing alarmed that the crisis at the Companies & Intellectual Property Registration Office (Cipro) could affect the long-awaited...

INFORMAL ECONOMY. New look at small traders.
October 29, 2010... Byline: Lise Pretorius INFORMAL ECONOMY New look at small traders SA's informal economy is growing at 10,9% more than three times the rate of the economy as a whole. Globally, the bottom of the pyramid, made up of those who live off between...

INDIGENOUS RESOURCES. Permission to sip.
October 29, 2010... Byline: Shannon Sherry INDIGENOUS RESOURCES Permission to sip The makers and exporters of some of the best-known SA products derived from indigenous plants and organisms have laid themselves open to criminal prosecution by failing to acquire...

MICROFINANCE. Small to big and back.
October 29, 2010... Byline: Stafford Thomas MICROFINANCE Small to big and back Mzansi accounts may mean little to South Africans who take banking for granted, but for millions of others these simple, low-cost accounts have opened the door to transactional...

SABC. Kindly remain seated.
October 29, 2010... Byline: Carol Paton SABC. Kindly remain seated Broadcaster on the brink thanks to SABC head's to-ing and fro-ing WHAT IT MEANS: Nicholson finally gets thumbs-up as CEO. Four of the board's 12 members have left Ben Ngubane, the chairman of...

Still open for business.
October 29, 2010... Byline: Stephen Cranston Still open for business It was enough to make the usually unflappable Errol Kruger use some intemperate language. The registrar of banks told the FM (Money & Investing October 22) that global bank HSBC's decision...

MCCARTHY LTD. Life of Brians.
October 29, 2010... Byline: David Furlonger MCCARTHY LTD. Life of Brians One, McCarthy, shaped its past. The other, Joffe, dictates its future WHAT IT MEANS: McCarthy confidence launched Toyota. Family links have been broken It started life as a bicycle...

MINING. Transform or be damned.
October 29, 2010... Byline: Zweli Mokgata MINING Transform or be damned Mining companies face potentially heavy penalties next year when government evaluates transformation levels as part of the new mining charter. National Union of Mineworkers general...

NURSES. An old training model.
October 29, 2010... Byline: Xolile Bhengu NURSES An old training model The department of health is proposing an overhaul of nursing training in an effort to deal with the chronic backlog in qualified nurses and falling standards in the profession. As part of...

SUBURB WATCH. Fear of falling.
October 29, 2010... Byline: Ian Fife SUBURB WATCH. Fear of falling Temporary gloom unlikely to stop the long upturn ahead for SA property WHAT IT MEANS: Prices could fall by 2,5% next year. But first signs of real growth now showing The SA house market is...

CONSUMER PROTECTION ACT. Definition difficulties.
October 29, 2010... Byline: Stafford Thomas CONSUMER PROTECTION ACT Definition difficulties Four years in the making, the Consumer Protection Act (CPA) will place power in the hands of consumers when it comes into force in March 2011. For suppliers it will bring...

GIMME. Multimedia marvel.
October 29, 2010... Byline: Kate Thompson GIMME Multimedia marvel 2010 has been a year of big phone launches, with major players like Research in Motion, Samsung and Apple introducing their super phones to the world. The jostling for position has resulted in...

ECONOMIC ACTIVITY. Leading up.
October 29, 2010... Byline: Razina Munshi ECONOMIC ACTIVITY Leading up The Reserve Bank's latest economic activity indicator suggests the economy may not be headed for the previously expected bump in the months ahead. SA's leading indicator rose by an impressive...

LABOUR LAW. Directors have rights.
October 29, 2010... Byline: Prakash Naidoo LABOUR LAW Directors have rights As key aspects of the Companies Act come into effect in the next year, one feature of the new law is the heightened role and responsibility of directors, including penalties for those...

MINING. The jobs test.
October 29, 2010... Byline: Charlotte Mathews MINING The jobs test WHAT IT MEANS: Mining has potential to create 100 000 jobs. Indirect effect would be 2,5 times greater Everyone in the mining industry needs to help demonstrate that it can contribute to the...

The world's women in numbers.
October 29, 2010... Byline: Sasha Planting The world's women in numbers 57m more men than women exist in the world, according to a UN report titled The world's women 2010: trends and statistics, documenting women's advancement, or lack of it, in the past decade....

METRO RESTAURANT CAFE & BAR. THE PLACE TO BE OR NOT TO BE. Puff with the best.
October 29, 2010... Byline: Yvonne Fontyn THE PLACE TO BE OR NOT TO BE. Puff with the best METRO RESTAURANT CAFE & BAR Where: Benmore Gardens Shopping Centre. Mood: Black diamond In the 1990s governments began introducing smoking bans in most countries...

PROFILE. Fresh to the fray.
October 29, 2010... Byline: Zweli Mokgata PROFILE Fresh to the fray If Ivan Moroke is worried about stepping into giant shoes, he doesn't show it. When he becomes MD of advertising agency TBWA\Hunt\Lascaris Johannesburg on January 1, it will be after a...

Interview - TouchStone Resources director Anthony Turton. QUESTIONS & ANSWERS. Water quality leaks.
October 29, 2010... Byline: Lise Pretorius QUESTIONS & ANSWERS Water quality leaks asks water resource scientist and TouchStone Resources director Anthony Turton about the state of SA's water supply and management There is a lot of talk about a national...

QUOTE OF THE WEEK - MERVYN KING.(Quotation)
October 29, 2010... QUOTE OF THE WEEK For all the clever innovation in the financial system, its Achilles heel was and remains the absurd levels of leverage represented by a heavy reliance on short-term debt. The broad answer to the problem is [that] banks should...

REAL PEOPLE DOING UNREAL THINGS. A buzz on board.
October 29, 2010... Byline: Jacqui Pile REAL PEOPLE DOING UNREAL THINGS. A buzz on board Brian Steinhobel Industrial designer THE UNREALITY CHECK. Worked as a military diver and was buzzed by sharks on numerous occasions Took 20 years to refine the Shark...

Bob Rightford. WHERE ARE THEY NOW? On the first page.
October 29, 2010... Byline: Zweli Mokgata WHERE ARE THEY NOW? On the first page Bob Rightford is in the process of writing the story of one of SA's most powerful advertising firms. The man who led the establishment of what is today known as Ogilvy SA says he...

OBITUARY. Ian Fife.
October 29, 2010... Byline: Linda Stafford OBITUARY Ian Fife Ian Fife, who died suddenly on Wednesday morning at age 67, was a tough and uncompromising property writer and editor, not least because he himself was involved in property. His knowledge of the...

Chinese lessons.
October 29, 2010... Byline: William Sonnenberg Chinese lessons Ken Owen's letter Don't sneer at China in the October 22 issue is characteristically pompous and flawed. Surely the Chinese don't have a mandate on life being serious? There are millions of South...

Put SA first.
October 29, 2010... Byline: Tony Ball Put SA first Why does SA continue giving away customs duties as part of the Southern African Customs Union? Surely it is time for us to put our requirements first instead of looking after our neighbours? My other gripe is...

BOOKS. Wake-up call.
October 29, 2010... Byline: Richard Steyn BOOKS Wake-up call INFECTIOUS GREED: How Deceit and Risk Corrupted the Financial Markets By Frank Partnoy. 473 pages. Profile R289,95 Infectious greed was the term used by former Federal Reserve chairman Alan Greenspan...

CINEMA. Beasts in a jungle.
October 29, 2010... Byline: Peter Wilhelm CINEMA Beasts in a jungle Well produced and acted, but the plot stretches credulity The Girl with the Dragon Tattoo Directed by Niels Arden Oplev. Lead roles: Noomi Rapace Michael Nyqvist Sven-Bertil Taube This is the...

HEALTH. It's not too late.
October 29, 2010... Byline: Yvonne Fontyn HEALTH It's not too late Exercise not only benefits overall health, but also prevents illness and injuries, especially in old age, finds Healthy, fit individuals are less sick and if they do get sick, they make a quicker...

JAZZ CD REVIEW. Subtly awesome.
October 29, 2010... Byline: Don Albert JAZZ CD REVIEW Subtly awesome Abdullah Ibrahim, like his mentor Duke Ellington, is a composer who plays the piano, which certainly does not mean the two of them are mediocre pianists. Ellington was a wonderful pianist....

GIVEAWAY.
October 29, 2010... GIVEAWAY The FM and Sony Music are giving away five copies of Abdullah Ibrahim's CD Bombella. E-mail fmcompetition@ fm.co.za before November 5 to enter the draw. Please put CD giveaway in the e-mail subject line, name the CD you want to win and...

The Birdcage Resturant. FOOD FOR THOUGHT. Pity about the people.
October 29, 2010... Byline: Justice Malala FOOD FOR THOUGHT Pity about the people JUSTICE MALALA ***The Birdcage 82 Jan Smuts Avenue, Corner Cotswold Drive, Saxonwold, Johannesburg. Tel: (011) 646-6315 *****Excellent ****Good ***Passable **Malema *Lekota/Shilowa...

Interview - Michelle Constant, Business & Arts SA. COFFEE WITH THE FM. Connected by art.
October 29, 2010... Byline: Sue Grant-Marshall COFFEE WITH THE FM Connected by art with Business & Arts SA CEO Michelle Constant at Lulu in Parktown North, Johannesburg HOW SHE CHILLS: Walking through Emmarentia's botanical gardens. Travelling: I'm curious...

RUGBY. In the grand tradition.
October 29, 2010... Byline: David Williams RUGBY In the grand tradition After the Currie Cup final on Saturday between the Sharks and Western Province in Durban (which will surely be won by the home side), thoughts will turn almost immediately to the November...

TRENDS. All alone with a network.
October 29, 2010... Byline: Sue Grant-Marshall TRENDS All alone with a network examines the contradictions of the tech generation The generation that will be in charge of a world running out of water and other natural resources by the middle of this century is...

ARCELORMITTAL SA. Earnings not the big issue.
October 29, 2010... Byline: Charlotte Mathews ARCELORMITTAL SA Earnings not the big issue ArcelorMittal SA (Amsa), the country's largest steelmaker, will announce domestic steel prices for November and December this week but expects they will be stable or...

DIAMONDS. Hard to come by.
October 29, 2010... Byline: Charlotte Mathews DIAMONDS Hard to come by Investments by major diamond miners to extend production are not going to solve the supply shortfall that underpins the rise in rough diamond prices. Expansion plans at the Jwaneng mine owned...

Diamond: Verimark. Dog: SilverBridge.
October 29, 2010... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond Verimark Judging by the astonishing turnaround in Verimark's fortunes in the past year, the home makers of SA appear to have reacted to global financial turmoil by parking...

GOLD. Loses ground.
October 29, 2010... GOLD Loses ground After soaring to a record high of around US$1380/oz this month, the price of gold has pulled back somewhat with gold futures currently trading at around US$1340/oz. The gold price has risen more than 20% since the start of this...

METALS. Index strong.
October 29, 2010... METALS Index strong Since the start of this month, base metals have rallied considerably, with the RMB base metals index (which includes all six industrial metals on the London Metals Exchange) up more than 6%. The major contributors to the rise...

OIL. Narrow range.
October 29, 2010... OIL Narrow range Since the start of this month, the price of Brent crude oil has been fluctuating above the US$80/bbl level. Oil has been trading in a narrow range of around $80-$85/bbl, notwithstanding wild price swings during this period. Last...

Crisis watch.
October 29, 2010... Byline: Andrew McNulty Crisis watch For most investors, the market crash of 1987 was unexpected, in its speed and severity. It happened 23 years ago last week. There were some warning signals, including declines in prices on Wall Street in...

TRENCOR. End of an era.
October 29, 2010... Byline: Andrew McNulty TRENCOR End of an era Trencor's share traded at record highs last week, after holding company Mobile Industries confirmed a plan to eliminate the pyramid control structure. This could bring to an end decades of control...

JSE. Rethink resources.
October 29, 2010... Byline: Garth Mackenzie JSE Rethink resources The JSE resources sector has underperformed the rest of the market for the past year. That trend seems to have changed recently, however. The resources index has seen a strong rally since late...

EQUITIES. Hidden gems.
October 29, 2010... Byline: Stafford Thomas EQUITIES. Hidden gems Stronger and stable GDP growth is the key driver in attracting investors to small-cap stocks WHAT IT MEANS: Solid value lurks among smaller caps Caution is required as risk is higher It's time...

ORION REAL ESTATE - REAL ESTATE HOLDING & DEVELOPMENT.
October 29, 2010... Byline: Razina Munshi ORION REAL ESTATE REAL ESTATE HOLDING & DEVELOPMENT Price: 20c Yr Dec T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R126,1m 2010 75 64 8,4 PE: 666,67 2009 57,2 169,4 53,59 Sector: 10,67 t s +31% -62% -84% Orion...

PICK N PAY. Girded for battle.
October 29, 2010... Byline: Sasha Planting PICK N PAY Girded for battle Bronwen Rohland, Pick n Pay's new marketing director, is a formidable operator. Credited with managing the group's R500m SAP implementation and its evolving supply chain strategy, she will...

PREMIUM PROPERTIES - PROPERTY LOAN STOCKS.
October 29, 2010... Byline: Stephen Cranston PREMIUM PROPERTIES PROPERTY LOAN STOCKS Price: R17,35 6m Aug Rev (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R2,26bn 2010 218 118 53,9 58,7 PE: 6,6 2009 198 106 60,6 51,9 Sector: 10,6 t s +10% +11% -10% +13% The fund...

LISTED PROPERTY. Vividend good in parts.
October 29, 2010... Byline: Ian Fife LISTED PROPERTY Vividend good in parts On the face of it the proposed listing of a new property loan stock company, Vividend, is what the sector needs. Its small initial property portfolio, worth R425m, won't attract the big...

STANDARD BANK Taking bums off seats.
October 29, 2010... Byline: Stephen Cranston STANDARD BANK Taking bums off seats Most banks have been quietly trimming their work forces through natural attrition and early retirement. But Standard Bank's decision to retrench or end the contracts of more than 2...

On the back foot.
October 29, 2010... Byline: JC Mould On the back foot Thank goodness Unisa's graduate school of business is now offering a bog- standard master's degree in business administration (MBA), according to the article Renewal (Unisa SBL Corporate Report October 22)....

SIZE. Beyond constraints.
October 29, 2010... Byline: Andrew Gillingham SIZE Beyond constraints Size matters in almost everything, including the investment world where actively managed funds may hit the wall in terms of their performance if they grow too large a constraint that does not...

COSTS. Clearing misconceptions.
October 29, 2010... Byline: Andrew Gillingham COSTS Clearing misconceptions One of the issues that appears to be slowing institutional adoption of exchange traded funds (ETFs) in portfolios is a misunderstanding of the costs associated with the products in...

Developing.
October 29, 2010... Byline: Andrew Gillingham Developing Market share for these funds needs to grow further WHAT IT MEANS: There is less than R30bn in ETFs. Demand has come from retail investors Adoption by SA institutional and retail investors has been slower...

Balancing the portfolios.
October 29, 2010... Byline: Andrew Gillingham Balancing the portfolios There are 25 different exchange traded funds (ETFs), with more being listed each year, providing financial advisers with a wide range of options when they are structuring portfolios for their...

MANAGEMENT. Active vs passive route.
October 29, 2010... Byline: Andrew Gillingham MANAGEMENT Active vs passive route There is a continuing debate as to whether active or passive management is the best approach in a well structured portfolio. Vladimir Nedeljkovic, head of exchange traded funds...

OFFERINGS. Changes are revolutionary.
October 29, 2010... Byline: Andrew Gillingham OFFERINGS Changes are revolutionary When exchange traded funds (ETFs) were first launched in SA back in 2000 they were fairly standard products tracking broad market indices. Since that time the range on offer has...

Surviving.
October 29, 2010... Byline: Lisa Witepski Surviving Still with some lustre, despite recent troubles WHAT IT MEANS: These investments provide a hedge against the rand's depreciation over time Remember that it is costly and potentially risky to try to feed your...

COMMUNICATION. Speaking with one voice.
October 29, 2010... Byline: Tamara Oberholster COMMUNICATION Speaking with one voice There are few infrastructural projects in SA that compare to the Gautrain in terms of size and scale. And Dr Barbara Jensen, communication & marketing director for the...

EMPOWERMENT. Catalyst for development.
October 29, 2010... Byline: Tamara Oberholster EMPOWERMENT Catalyst for development From the start, the Gautrain project has been seen as a huge opportunity to boost socioeconomic development in SA, and the project has delivered in this regard on multiple...