In Episode 53 of Magic Markets, we kicked things off with a brief discussion on Jerome Powell (who is now apparently considered “hawkish”) and the Turkish Lira, which is rather broken.
We then moved from fiscal balance sheets to company balance sheets. In particular, we explored what happens when bad balance sheets happen to good people.
In the aftermath of the pandemic, we’ve seen companies struggle with unsustainable debt. In some cases, this is an opportunity for large new equity investors or existing anchor shareholders to increase their stakes at a depressed valuation.
By working through examples like Tongaat, Brait and EOH, we show how important the balance sheet can be.
Magic Markets is your invitation to be part of our discussions on macro themes and company-specific news in the markets.
Corporate governance failures. Frauds. Accounting misstatements. A “hole in the balance sheet” – unfortunately, these breakdowns in trust happen on the market. When they do, the repercussions are severe not just for shareholders in the company in question, but potentially for the market as a whole. Have you noticed that JSE corporates are doing fewer acquisitions in exchange for shares these days? Mr Price just bought Yuppiechef for over R400m in cold, hard cash. Before the Steinhoff era, entrepreneurs were more inclined to accept shares in listed companies in exchange for their businesses. Those days are gone. What impact do the likes of Greensill and Wirecard have on their respective industries? How can investors and traders spot scandals and take advantage of them? Tongaat Hulett. EOH. This episode is packed with commentary by hosts The Finance Ghost and Moe-Knows on the companies that previously dominated the headlines for all the wrong reasons. Episode 17 of Magic Markets is brought to you by Elite Risk Acceptances. Visit the Elite Risk website for bespoke insurance cover for wealthy individuals. Elite Risk Acceptances is part of the Old Mutual Group of companies. ...
It's an April Fools' show, yet we only discuss things that have actually happened. It says a lot for the character of the markets that many of the current topics could probably double up as pranks. Other than Cathie Wood's ARK investing in John Deere in a space fund (?!?), the really interesting story in the markets has been the Archegos Capital Management blowup. A few banks have found themselves severely on the wrong end of this hedge fund disaster. Some retail investors would've been hurt as well. In Episode 19 of Magic Markets, hosts The Finance Ghost and Mohammed Nalla (Moe-Knows) discuss how hedge funds work and how this has happened. There's also a discussion around investing in IPOs, with a dad joke thrown in along the way for good measure. ...
In Episode 88 of Magic Markets, Justine Brophy of AnBro Capital Investments joined us to look back at the stocks that we talked about in Episode 80 with the AnBro team. The performance of those stocks has been strong, highlighting the importance of stock picking in a volatile and difficult market. Through this process, we get insights into AnBro’s investment process and the way that the investment team looks at these opportunities. In a world of exciting tech companies that make big promises about the future, it’s important to only invest in business models that you understand. This has been one of the secrets of success for AnBro. Episode 88 of Magic Markets is brought to you by AnBro Capital Investments, an authorised Financial Services Provider FSP number 48371. Invest in the future. Invest in growth. Visit investinunicorns.com for more information. ...
