Thungela, and Purple Group + Consistency Meets Opportunity!

Hi there, 👋🏽

How can I protect my financial future? That’s a fair question considering our global uncertainty, but the time of opportunity. Peter Lynch has a great quote I want to share with you. But first…

In this edition:

The FinTwitter Favourites: Thungela and Purple Group were hot topics last week and we dive into more details here.

Woolworths vs Pick n Pay vs Shoprite: From food to flannel to fine wines these retailers are diverse and we made it simple with some stats.

Consistency Meets Opportunity: The Alpha Bucket and the Beta Bucket might be the synergy your investment portfolio needs.

In The News This Week 🗞

Local 🇿🇦

Thungela Resources Limited

• EPS and HEPS for H1 2023 are expected -66% to -75%.

• Coal prices have fallen sharply due to milder winter in Europe, softer gas prices, and increased coal supply to Asia.

• Net cash position of R14.0 billion as of 31 May 2023.

• Remains committed to its dividend policy and aims to target a minimum payout of 30% of adjusted operating free cash flow.

Purple Group Limited

• Successfully raised a total amount of R105 million through its rights offer.

• The rights offer was oversubscribed, with gross demand exceeding 113% of the available Rights Offer shares.

The Foschini Group Limited

• Group revenue +19.4% to R55.1 billion.

• Group gross margin -0.6% to 47.9%.

• Profit after tax +4.0% to R3.0 billion.

• Basic EPS +4.1% to 938.5 cents per share.

• A final dividend of 150.0 cents per share was declared, representing a decrease of 54.5%.

In the USA 🇺🇸 

Netflix

• Netflix is in talks to live-stream its first sporting event this fall: a celebrity golf tournament featuring professional golfers and Formula One drivers.

CPI

• CPI for May just came in at +4% YoY below expectations of +4.1%

Stock Spotlight 🔦

Woolworths vs Pick n Pay vs Shoprite

Would you like to see a video diving into these retailers? 👆🏽 Vote in the poll above which retailer you are looking at or holding.

The Knowledge Nugget 🧠

Consistency Meets Opportunity!

In a recent article by Josh Viljoen on “The Two-Bucket Approach: Balancing Consistency and Opportunity in Your Investment Portfolio”, he shares his insights into the benefits of the Alpha Bucket and Beta Bucket in your portfolio.

This is a premium article, so I can’t give too much away 🤫

Click here to explore the power of the Beta Bucket for stable returns and the Alpha Bucket for potential outperformance. Read the full article to learn how this approach can help you achieve your financial goals and make informed investment decisions.

PetMeUp is live!

We are excited to share PetMeUp with all our pet owners! We have been mentioning it over the last few weeks. What makes it different?

You make it personal with your pet. With our simple form, you complete your pet’s breed and choose your annual limit with the benefits you know your pet needs.

Plus you get a discount premium if you add a second pet. Get your pets covered with personal pet insurance.

Your Weekly Finance Quiz!

Getting back to finance, can you give this one a crack?

Real growth, as opposed to nominal growth, is growth…

• without adjusting for inflation

• adjusting for inflation

• without adjusting for interest

• adjusting for interest

If you got this one, start building your streak today!

The Weekly Update on YouTube

In this week’s stock watch, Higgo and Paul unpack Thungela’s latest results and future prospects. They also look at Purple Group’s rights offer, Foschini’s low profits, the future of Multichoice, and the latest US inflation figures.

Quote

“In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.” Peter Lynch

That’s all for this week’s edition of The Update.

Onwards and upwards

The Update is brought to you by Jonté Smit and Paul Roux.

Let us know if we missed something or if there are topics that you would like us to cover in upcoming editions.