Financial Mail articles from October 2011

Financial Mail archives from October 2011

MINING BENEFICIATION . Life beyond digging.
October 28, 2011... Byline: Charlotte Mathews MINING BENEFICIATION Life beyond digging Beneficiation is beyond the ordinary scope of activities of mining companies the margins are not as high and the mining houses don't have the skills EBRAHIM TAKOLIA Next month...

GIMME. Poetry in your ears.
October 28, 2011... Byline: Larry Claasen GIMME Poetry in your ears Why read books when you can listen to them? Amazon's audio book website, Audible.com allows you to do just that. So instead of getting irritated by the nonsense on local radio stations in...

DID YOU HEAR?
October 28, 2011... It is generally difficult for anyone to find anything good to say about the taxi industry. So when Julius Malema sang the praises of the industry this week, it was something to cherish. Malema, who blamed several forces for machinations to...

A greater Chinese threat.
October 28, 2011... Byline: Roger Lee A greater Chinese threat Having just read another episode of the ongoing Walmart saga, and how government and Cosatu would like to force the company to buy local goods, the thought struck me: Walmart is a corporate entity...

Skeletons in the closet.
October 28, 2011... Byline: Stafford Thomas STORE CARDS Skeletons in the closet When it comes to conspicuous consumption, what consumers want is clothing. It's an aspiration that retailers are exploiting to the hilt. According to the National Credit Regulator...

FAMOUS BRANDS - RESTAURANTS & BARS.
October 28, 2011... Byline: Marc Hasenfuss FAMOUS BRANDS RESTAURANTS & BARS Price: R44,00 6m Aug T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R4,2bn 2012 1,0 179 120 80 PE: 17,5 2011 0,9 162 112 70 Sector PE: 15,5 t s +12% +10% +7% +14% It's tempting to place...

Climate Change in numbers.
October 28, 2011... Climate Change in numbers 2013 is when SA's main carbon-emitting sectors must finalise their carbon budgets in line with gradually limiting the country's emissions to 583Mt of C0 by 2020 and by 614Mt by 2025. 34% below business as usual...

Interview - Deputy head of Solidarity Dirk Hermann is closing his Absa account. QUESTIONS & ANSWERS. Nothing personal.
October 28, 2011... QUESTIONS & ANSWERS Nothing personal Deputy head of Solidarity Dirk Hermann is closing his Absa account. Maarten Mittner spoke to him about the reasons and why he is no fan of the bank You criticised Absa more than a year ago for interfering...

FOOD PRICES. Trouble ahead.
October 28, 2011... Byline: Shannon Sherry FOOD PRICES Trouble ahead As food inflation gallops ahead of general inflation, new figures show that farmers are also struggling to make ends meet. In time this will place further upward pressure on food prices as some...

ECONOMICS MINI-BUDGET. Living beyond our means.
October 28, 2011... Byline: Claire Bisseker ECONOMICS MINI-BUDGET Living beyond our means The mini-budget confronts some hard truths about SA's public finances and seeks to steer them back onto a sounder footing WHAT IT MEANS: SA cannot afford a big government....

HOUSING. Open invitation.
October 28, 2011... Byline: Claire Bisseker HOUSING Open invitation In a desperate attempt to tackle the housing backlog government is taking any help it can get WHAT IT MEANS: Government looks to business to house workers. Contributions will be overseen by...

Generic drug makers up in arms.
October 28, 2011... Byline: Xolile Bhengu Generic drug makers up in arms SA manufacturers of generic drugs have accused multinational pharmaceutical companies of dirty tactics to maintain their market dominance. At issue is a drug patent holder's right to...

GRAND PARADE. Surprise nomination.
October 28, 2011... Byline: Marc Hasenfuss GRAND PARADE Surprise nomination Uys Meyer, the prime mover at Cape Townbased asset management firm BlueAlpha, is a surprise nomination to the board of black-owned gaming company Grand Parade Investments (GPI). Meyer...

BANKING. SA's first green bank.
October 28, 2011... Byline: Marc Hasenfuss BANKING SA's first green bank Former COO of 20/20 bank in SA, Chris Loker, has launched SA's first green financing company, a tentative step towards what could become SA's first green or sustainable bank. Newly...

ESKOM. Costly delays.
October 28, 2011... Byline: Charlotte Mathews ESKOM Costly delays WHAT IT MEANS: Kusile contractors facing various obstacles. Eskom's delays give rise to R200m+ claims Eskom has had to pay the four construction companies doing the R5bn civil works at Kusile...

REAL PEOPLE DOING UNREAL THINGS. A platform for youth.
October 28, 2011... Byline: Matiba Mutheiwana REAL PEOPLE DOING UNREAL THINGS A platform for youth Every country's future rests in the hands of its youth and, according to international business leader and One Young World cofounder Kate Robertson, SA's youth...

Interview - Chris Immelman, head of Pam Golding's international division. 7 QUESTIONS FOR ...
October 28, 2011... Byline: Ruan Jooste Chris Immelman, head of Pam Golding's international division FM: What is demand for London property like? Immelman: Consistently strong. Not peaks and troughs like other international properties. What is the reason for...

Bites.
October 28, 2011... Bites The second Stellenbosch at Summer Place in Hyde Park, Sandton, kicks off on Wednesday, November 9. The wine, food, music and art extravaganza proved a hit last year; this year, it promises to be an even better display of all things...

CINEMA. Don't touch me!
October 28, 2011... Byline: Peter Wilhelm CINEMA Don't touch me! What makes us human may be our downfall the horror is all too plausible CONTAGION Directed by Steven Soderbergh Lead roles: Gwyneth Paltrow Matt Damon Laurence Fishburne Marion Cotillard Kate...

HEALTH. Body boosters.
October 28, 2011... Byline: Yvonne Fontyn HEALTH Body boosters Nutritional science is showing why your mother was right when she told you to eat your vegetables. Johannesburg-registered dietician Ashleigh Caradas says adding fruit and veggies to a meal increases...

Save that smile.
October 28, 2011... Byline: Yvonne Fontyn Save that smile Brushing and flossing after meals goes a long way towards good oral health maintenance, but there is more the individual can do, says Prof Ahmed Essop, head of the department of general dental practice in...

JAZZ CD REVIEW. Top bebop on a budget.
October 28, 2011... Byline: Don Albert JAZZ CD REVIEW Top bebop on a budget Wanting to replace some of your best LPs with CDs? Jazz enthusiasts can now enjoy Blue Note, the best-known jazz label in the world, at the unbelievable price of R50 a CD at all major...

Assaggi. Indelible influence. FOOD FOR THOUGHT.
October 28, 2011... Byline: Justice Malala FOOD FOR THOUGHT Indelible influence JUSTICE MALALA ***** Assaggi Post Office Building, Rudd Road, Illovo. Tel: (011) 268-1370 ***** Tutu **** Excellent *** Good ** Gaddafi * Zuma Nothing has changed... The new...

RUGBY. Get the laws straight.
October 28, 2011... Byline: David Williams RUGBY Get the laws straight Is it my imagination, or are the provinces playing faster, snappier, cleverer rugby than the Springboks did at the World Cup? The Currie Cup semifinal at Ellis Park between the Lions and...

LONDON PROPERTY. Get a good tax driver.
October 28, 2011... Byline: Ruan Jooste LONDON PROPERTY Get a good tax driver Investing in London real estate has proved popular, but UK and SA regulation can add to the cost, writes London is fast becoming a city of tenants, with Russian, Asian and Middle...

ADVERTISING AWARDS. Tongue-tied.
October 28, 2011... Byline: Zweli Mokgata ADVERTISING AWARDS. Tongue-tied Is the existing awards system holding back respect for vernacular advertising? WHAT IT MEANS: Draftfcb Cape Town tops Pendoring league. Afrikaans will stay at heart of awards The...

Interview - Jamie Boyes, analyst at Catalyst Fund Managers. 9 QUESTIONS FOR ...
October 28, 2011... Byline: Joan Muller Jamie Boyes, analyst at Catalyst Fund Managers Is there still money to be made in global listed real estate or have SA investors missed the boat? There's no doubt the easy money has already been made, with global listed...

ALERT STEEL. Back to basics.
October 28, 2011... Byline: Charlotte Mathews ALERT STEEL Back to basics Alert Steel is taking the battle for market share in steel products out of the cities and into the villages. This year the AltX-listed group, in which WBHO holds an effective 19% after...

CAPEVIN . Tight grip on bottle.
October 28, 2011... Byline: Marc Hasenfuss CAPEVIN Tight grip on bottle Last week's AGMs of Capevin Holdings (unlisted) and Capevin Investments (listed on the JSE) investment companies that own shares in liquor giant Distell as their only investment were...

CLICKS GROUP - DRUG RETAILERS.
October 28, 2011... Byline: Xolile Bhengu CLICKS GROUP DRUG RETAILERS Price: R39,50 Yr Aug T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R10,6bn 2011 14,1 897,7 250,1 125 PE: 15,82 2010 13,2 770 212,3 106,2 Sector PE: 21,42 t s +6,2% +16,5% +18% +18% Clicks...

GOODERSON - LEISURE.
October 28, 2011... Byline: Zweli Mokgata GOODERSON LEISURE Price: 55c 6m Aug T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R68,75m 2011 49,5 1,2 75 PE: 24,23 2010 44,8 0,7 46 Sector PE: t s +10,2% +74% +63% Despite a severe decline in international tourism,...

KAP INTERNATIONAL. Big bag of stuff to carry.
October 28, 2011... Byline: Marc Hasenfuss KAP INTERNATIONAL Big bag of stuff to carry Do we really need another unfocused industrial conglomerate? Apparently we do. Steinhoff's R8,9bn proposal to inject a number of its noncore businesses into KAP International...

NEW LISTINGS. Risk in a time of upheaval.
October 28, 2011... Byline: Marc Hasenfuss NEW LISTINGS Risk in a time of upheaval Companies listing during this period of market uncertainty have to ensure all their ducks are in a row to have any chance of succeeding DAVID SYLVESTER It might be a period of...

Market watch.
October 28, 2011... Byline: Andrew McNulty Market watch Investor confidence may still be fragile, but several of the JSE's top 40 stocks surged to 12-month or record highs this week. An easing of the fear that's been haunting the markets since July may have...

PICK N PAY. Signs of recovery.
October 28, 2011... Byline: Stafford Thomas PICK N PAY Signs of recovery How much worse can it get? It's a question long-suffering Pick n Pay shareholders have good reason to ask after a 39% slump in headline earnings per share (HEPS) in the six months to...

PREMIUM PROPERTIES - REAL ESTATE.
October 28, 2011... Byline: Joan Muller PREMIUM PROPERTIES REAL ESTATE Price: R15,12 6m Aug T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R2,37bn 2011 251,1 69,18 50,4 55,8 Yield: 7,5% 2010 218,8 71,2 64 58,7 Sector yield: 8% t s +14,3% -2% -21,3% -4,9% The drop in...

UNIT TRUSTS. Rand hedge pays off.
October 28, 2011... Byline: Stephen Cranston UNIT TRUSTS Rand hedge pays off International bonds are considered to be one of the best asset classes to invest in, at least as a way to diversify from domestic assets. But this diversification has come at a cost....

VALUE GROUP. Spending on capital.
October 28, 2011... Byline: Lise Pretorius VALUE GROUP Spending on capital Rising fuel prices, fuel industry strikes and general economic lethargy have meant lower volumes per customer for JSE-listed transport & logistics company Value Group. But by forging...

All taxed out.
October 28, 2011... Byline: Gavin Lewis All taxed out Nazmeera Moola's column, (Economic Viewpoint October 21) refers. She postulates that one of the factors that may lift the economy out of recession is a revival in consumer spending, premised on...

Investor's Notebook.
October 28, 2011... Byline: Stephen Cranston Investor's Notebook It is easy for unsuccessful investors to sneer at competitors who indulge in market timing. This is a swear word among orthodox valuation-based managers. But tactical asset allocation (TAA), to use...

The cons of a weak rand.
October 28, 2011... Byline: Dewald de Lange The cons of a weak rand Trying to convince proponents of a weak rand that this would not be beneficial is becoming tiresome. Let's say King Shaka discovered gold in Zululand, and the travelling merchant Marco Polo...

More than a few unkind cuts.
October 28, 2011... Byline: Elise van der Pijl More than a few unkind cuts About 18 months ago I purchased a basic two-bedroom unit on a life-right basis in a retirement village in Ruimsig. The purchase price was R920 000. At 58, I believed, this would be my...

ECONOMIC INDICATORS.
October 28, 2011... 3,2 percent The number of company liquidations dropped by 3,2% y/y in September to 330, Statistics SA reported. Total liquidations in the third quarter of 2011 grew by 2,1%, compared with the same period in 2010. But the number of company...

WINNERS & LOSERS.
October 28, 2011... WINNERS & LOSERS WINNER Doug Oberhelman Biggest heavy equipment maker Caterpillar's chair and CE posts profits up 44% to US$1,14bn the best quarter for sales in our history with orders at a record high; 2011 revenue of $58bn is expected. ...

Global strength, local relevance.
October 28, 2011... Byline: Lance Harris BROAD-BASED BEE CONTRIBUTOR Global strength, local relevance T-Systems was one of the first multinational ICT groups to bring broad-based black economic empowerment (BBBEE) shareholders on board, through a deal signed in...

ICT ENVIRONMENTS. Managing complexity.
October 28, 2011... Byline: Lance Harris ICT ENVIRONMENTS Managing complexity SA companies, like most organisations around the world, are struggling to manage the complexity of their ICT environments while using technology to drive business innovation. They are...

A culture of openness.
October 28, 2011... Byline: Lance Harris SUCCESSFUL MERGER A culture of openness The integration of two businesses following a merger usually results in a sharp drop in employee morale. Yet the opposite was true at T-Systems SA after its acquisition of...

Issuance on the rise.
October 28, 2011... Byline: Evan Pickworth Issuance on the rise Bond issuance has been dominated by government paper for over a year in SA's primary market. At the end of August 2011, the total nominal value of bond listings on the JSE amounted to R1,25trillion,...

On the comeback trail?
October 28, 2011... Byline: Evan Pickworth On the comeback trail? With funding in debt markets likely to be cheaper than bank loans, corporate bond activity could be on the up and up in the decade ahead. The looming Basel 3 accord will only serve to increase...

Not all bad.
October 28, 2011... Byline: Evan Pickworth Not all bad But the debt climate continues to create uncertainty WHAT IT MEANS: A high number of SA bonds are owned by foreigners, which is a major concern Trading bonds is not for sissies, but the tough times this year...

THE AWARDS. Rewarding excellence.
October 28, 2011... Byline: Evan Pickworth THE AWARDS Rewarding excellence For eight consecutive years I-Net Bridge MD Anina Morley has watched the Spire Awards grow from strength to strength. And she believes the prestige and recognition that comes with winning...

DERIVATIVES. Still challenges ahead.
October 28, 2011... Byline: Evan Pickworth DERIVATIVES Still challenges ahead This time last year, Bernard Claassens, Bonds & Bond Derivatives manager at the JSE, wanted listed bond derivatives to grow 100%, matching the stellar growth of single stock...

EMERGING MARKETS. How to take aim.
October 28, 2011... Byline: Evan Pickworth EMERGING MARKETS How to take aim By 2025, emerging markets will account for more than half of the world's saving and investment. This is the startling finding of a recent McKinsey report, which says these shifts will...

DEALMAKING. The eye of the storm.
October 28, 2011... Byline: Evan Pickworth DEALMAKING The eye of the storm Futuregrowth chief investment officer Andrew Canter caused a stir when he said at an investment conference in August that buying takkies on eBay was fairer than trading SA bonds. ...

Entrenched risk maturity.
October 28, 2011... Byline: Jocelyn Newmarch Entrenched risk maturity Medscheme's safety net lies in the legal, governance, risk and compliance department, whose job it is to mitigate potential legal, reputational or financial risks to the group. In short, this...

Valuable contribution.
October 28, 2011... Byline: Jocelyn Newmarch Valuable contribution Despite dazzling technological advances and sophisticated IT systems, health care remains an industry that is deeply personal. For companies that want to compete effectively in this space,...

MANAGED CARE. Set on promoting good health care.
October 28, 2011... Byline: Jocelyn Newmarch MANAGED CARE Set on promoting good health care In a society that is so polarised between public and private health care, Medscheme's vision creating a world of sustainable health care is especially pertinent. Adequate...

CUSTOMER CARE. The people come first.
October 28, 2011... Byline: Jocelyn Newmarch CUSTOMER CARE The people come first Medscheme's first chief operating officer, Kevin Aron, says he's determined to deliver an efficient, seamless and customer-centric service. Our core business is to ensure services...

BRAND STRATEGY. A meaningful difference.
October 28, 2011... Byline: Jocelyn Newmarch BRAND STRATEGY A meaningful difference Many corporates are quick to make extravagant promises, but delivering on their word is a lot harder. Medscheme's overall vision is to create a world of sustainable health...

Solid plans in place.
October 28, 2011... Byline: Jocelyn Newmarch STRATEGY Solid plans in place Plans to revamp the entire health-care sector have been a generator of news headlines ever since government said it was looking at introducing a National Health Insurance (NHI) system in...

IT SOLUTINOS; It's about the right key.
October 28, 2011... Byline: Jocelyn Newmarch IT SOLUTIONS It's about the right key Medscheme's ICT operation is a strategic and core asset in helping the organisation drive efficiencies and cut costs without compromising quality of service. This is not an easy...

OPPORTUNITIES. Focus on solutions.
October 28, 2011... Byline: Jocelyn Newmarch OPPORTUNITIES Focus on solutions These days, Africa is the new darling of investors. Its mineral resources are in great demand, particularly by China, but, increasingly, corporates are also looking for ways to tap...

RISK MANAGEMENT. Converting losses into wins.
October 28, 2011... Byline: Jocelyn Newmarch RISK MANAGEMENT Converting losses into wins No-one is more aware of the importance of cost control than Medscheme. With more than 3million lives under management, and an average of 150 000 calls received every month,...

OFFSHORE EXPANSION. Foresight and insight.
October 28, 2011... Byline: Jocelyn Newmarch OFFSHORE EXPANSION Foresight and insight Right now, Medscheme is sitting pretty. Celebrating 40 years in the health industry, it has successfully tied up a 2009 merger with Old Mutual Healthcare. As a result, it is...

Perfect fit.
October 28, 2011... Byline: Jocelyn Newmarch Perfect fit This leading health scheme administrator, with strong BEE credentials, is focused on robust growth WHAT IT MEANS: The private sector has a huge role to play in sharing experiences with government Directors...

DEMOCRATIC ALLIANCE LEADERSHIP. Limited significance.
October 28, 2011... Byline: Prakash Naidoo DEMOCRATIC ALLIANCE LEADERSHIP Limited significance Regardless of who wins this week's election to become the DA's parliamentary leader, the party's fortunes in the 2014 election are unlikely to be affected. Ahead of...

INWARD INVESTMENT WALMART/MASSMART. How to deter investors.
October 28, 2011... Byline: Lindo Xulu INWARD INVESTMENT WALMART/MASSMART How to deter investors At times in the competition appeal court in Cape Town last week, the proceedings seemed like an exercise in futility. Apart from the SA Commercial, Catering &...

YOU COULD WIN.
October 28, 2011... 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...

Critical choices.
October 28, 2011... Byline: NAZMEERA MOOLA Critical choices I'm writing this a few days before the SA finance minister announces treasury's latest three-year budget plan. Over the weekend Europe's leaders have groped towards a solution to their debt crisis. The...

Whither the beloved country?
October 28, 2011... Whither the beloved country? Instead of being a buffer, the Judicial Service Commission has become a bridge to political interference Cabinet ministers come and go, though perhaps not nearly as often as we might like. They are politicians and we...

Desmond at 80.
October 28, 2011... Byline: Barney Mthombothi Desmond at 80 A few years ago, Desmond Tutu returned home after a year's sabbatical in the US. The Arch was not his convivial self. He looked gaunt and haggard. He said he was back home to rest. He was suffering from...

EXECUTIVE MOVES.
October 28, 2011... Marteen Michau, the former head of RMB Private Bank's fiduciary and tax division, has joined Sanlam Private Investments. Michau has 19 years' experience in managing tax, fiduciary and international advisory matters. Wiseman Nkuhlu has joined the...

Invest in justice.
October 28, 2011... Byline: MARK HEYWOOD Invest in justice In its diagnostic report, the national planning commission (NPC) recognises the important role played by civil society and says: More deliberate efforts are needed to ensure that the voices of those who...

Rebooted yet again.
October 28, 2011... Byline: DUNCAN MCLEOD Rebooted yet again Though he's been widely praised for firing two of his ministers this week, President Jacob Zuma's cabinet reshuffle has ruffled the technology industry. There are fears that redeploying communications...

FM FOX.
October 28, 2011... Workers at the Tongon gold mine in C'te d'Ivoire operated by Randgold Resources, whose CEO, Marc Bristow, expects to be producing 1,2moz of gold a year by 2015 at 20% profit even if gold falls to US$1 000/oz. A boy on a makeshift raft in...

Let business get on with it.
October 28, 2011... Byline: Derek Excell Let business get on with it Sadly the paranoia shown by the ANC government over the arrival of the world-class operator Walmart reflects how little support there is for private business in our government. You have...

Another Week.
October 28, 2011... Another Week AFRICA A large natural gas field containing up to 425bn cubic metres of gas is discovered off the Mozambique coast by Italian energy giant Eni, raising the prospect of more gas being found off East Africa. President Jacob Zuma...

COMINGS & GOINGS.
October 28, 2011... COMINGS & GOINGS Andrew Holness Jamaica's former education minister has been sworn in as the new prime minister. At 39, he is Jamaica's youngest ever head. He replaces Bruce Golding, who resigned over a US extradition of a gang leader. Tom...

Out of control.
October 28, 2011... Byline: Stafford Thomas CONSUMER DEBT Out of control Despite legislation to curb excessive lending, consumers are drowning in debt, reports WHAT IT MEANS Total bad consumer debt is 8% of GDP 46,7% of credit accounts are impaired Put simply,...

DEBT COUNSELLING. Lifeline in rising waters.
October 28, 2011... Byline: Stafford Thomas DEBT COUNSELLING Lifeline in rising waters Consumers are now better protected from creditors WHAT IT MEANS: 6 000 people seek debt relief each month. Debt restructuring can benefit creditors too With correct...

Tarnished gems.
October 28, 2011... Byline: Sean Clinton Tarnished gems The fact that Israel stands accused of far worse crimes than Zimbabwe, including war crimes, is completely overlooked The Kimberley Process (KP) was severely flawed from the outset when vested interests...

Hope for tariff relief.
October 28, 2011... Byline: Lise Pretorius ELECTRICITY Hope for tariff relief The growing voice of SA's Energy Intensive User Group seems to have been heard. It has been warning government and Eskom that the country's electricity price path will threaten...

ABSA. Work to do in Africa.
October 28, 2011... Byline: Maarten Mittner ABSA Work to do in Africa Absa CEO and Barclays Africa chair Maria Ramos recently unveiled a new phase in the bank's African expansion strategy by involving management already focused on the local market. A new...

Relaxed rules for inward listings.
October 28, 2011... Byline: Andrew McNulty Relaxed rules for inward listings Proposed liberalisation of rules governing inward listings on the JSE could encourage investment flows and may make the local exchange more attractive for foreign companies that have...