MTBPS: the deficit is deafening
Medium-Term Budget Policy Statement (MTBPS) – just reading it out loud is more of a mouthful than Finance Minister Tito Mboweni’s finest roast chickens on Twitter. This is different to the annual budget speech which presents the country’s finances for the next financial year. The MTBPS gives context to the budget speech for the forthcoming year, giving the market details …
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Leverage: the driver of margin
Have you ever read a results announcement and wondered how revenue can grow by perhaps 7%, yet profit before tax somehow grows by 20%? It seems like an innocuous question, yet the answer holds the key to why many companies are successful and others fail. Top-line growth (i.e. revenue growth) is obviously important, but as revenue growth starts to reach …
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Leverage: the driver of margin
Have you ever read a results announcement and wondered how revenue can grow by perhaps 7%, yet profit before tax somehow grows by 20%? It seems like an innocuous question, yet the answer holds the key to why many companies are successful and others fail. Top-line growth (i.e. revenue growth) is obviously important, but as revenue growth starts to reach …
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Adapt-ing to accounting standard issues
Adapt IT is a JSE small cap operating in the IT industry. The company is worth around R390m which is unremarkable. The remarkable news is that it was worth only R160m at the end of September. This is the thing with smaller companies on the JSE: they trade sideways for extended periods and experience significant jumps or drops based on …
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Adapt-ing to accounting standard issues
Adapt IT is a JSE small cap operating in the IT industry. The company is worth around R390m which is unremarkable. The remarkable news is that it was worth only R160m at the end of September. This is the thing with smaller companies on the JSE: they trade sideways for extended periods and experience significant jumps or drops based on …
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Tesla: best quarter in history
- Global
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China, Electric vehicles, Elon Musk, Energy, Ford, General Motors, Gigafactory, Solar, Tesla, Toyota, Volkswagen
- October 25, 2020
Tesla has released its much-anticipated Q3 results. “Alright, so Q3 was our best quarter in history.” Those were the opening words of Elon Musk on the Tesla Q3 earnings call. A sales record combined with free cash flow of $1.4bn is certainly impressive, but as ever I remain concerned about the hype around this company which does not operate in …
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Netflix shareholders are getting nervous
Netflix is the N in FAANG – but I maintain that it’s not the potential cash cow that the other Big Tech companies are. Perhaps N should stand for Nervous, a fair description for shareholders at the moment. Netflix is the only FAANG company that I don’t directly hold shares in. This is because I don’t buy in to the …
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Netflix shareholders are getting nervous
Netflix is the N in FAANG – but I maintain that it’s not the potential cash cow that the other Big Tech companies are. Perhaps N should stand for Nervous, a fair description for shareholders at the moment. Netflix is the only FAANG company that I don’t directly hold shares in. This is because I don’t buy in to the …
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Steinhoff fine: punishing the wrong people
Steinhoff misrepresented its accounts by literally billions of Euros. It was a scandal that rocked the market when it was uncovered in 2017, putting the Christo Wiese empire into a tailspin and sending shockwaves through the accounting profession. Sentiment of entrepreneurs towards listed companies turned sour. If they couldn’t trust the Steinhoff financials, why should they trust the financials of …
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Being listed isn’t always a gas
A listed company, for example on the Johannesburg Stock Exchange (JSE), allows its shares to be traded publicly on the exchange. This enables anyone to put in a bid for the shares which could match with an offer from an existing shareholder and… …BINGO magic happens. Shares have been traded, there’s a new shareholder on the shareholder register and the …
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