Simon Shares

I have been talking about a cracking (broken?) consumer for a few months now. Two recent surveys show exactly this data.

• BankservAfrica’s five-year review of Take-home Pay and Private Pensions in South Africa for February 2018 – February 2023
  • "The average nominal salary Take-home Pay Index, increased from R12,573 to R15,438, +22.8%." But CPI was 26.6% and take home pay had kept track until last year.
• Debt Busters Debt Index | Q1 2023 survey
  • "Nominal incomes were 2% higher than 2016 levels, however when cumulative inflation growth of 40% is factored in for the same seven-year period, consumers’ purchasing power diminished by 38% over this period.".

• Rand trades at worst level ever on Friday, R19.5169/US$.
• Transaction Capital (JSE code: TCP), last week I sad the worst may be behind them. Well with the ZAR collapsing equalling more inflaiton and rates and petrok increases. Maybe not for SA Taxi or WeBuyCar.

• Purple Group* (JSE code: PPE) rights issue. Full details on 18 May. It will be R105m from Purple Shareholders and R45m from Sanlam at Easy Equities level. Total R150m
• Local PGM production down 14% in Q1.
• Calgro M3 (JSE code: CGR) results saw HEPS just above 150c while the stock trades at ±300x. Value or value trap?
• Sold my Sun International (JSE code: SUI) as price go backwards and I protecting profits. Excluding dividends ±70% return since November 2021.
• OpenAI Sam Altman goes before US Congress to propose licenses for AI.
  • Pulling the ladder up behind you to stop others.
    • I have been using ChatGPT via Bing and Google Bard. For investors they mostly useless.
• Octodec (JSE code: OCT) results. Large discount to NAV and DY ±14%.
• Investing in mega trends

* I hold ungeared positions.

Simon Brown