JSEDirect 15 February 2024 ~ Inflation, it ain’t over. So what about rates?
Channel: JustOneLap
Date: 2024-02-14

Pick n Pay* Chart Analysis
Resistance zone around 26, potential to touch 26.70
Higher highs, higher lows, horizontal resistance
Target: 30 bucks to fill the gap
Comments on Pick n Pay’s potential under Sean Summers
No need for a rights issue, potential market spook if it happens
Simon’s position: Started building, considering more
Current status: Down 1.7%, trading at 25.30

Transaction Capital and WeBuyCars
Transaction Capital planning to list WeBuyCars
Unbundling process expected in March
Valuation: 7.5 billion rand
Key information: Founders’ put option on Transaction Capital is off the table
WeBuyCar’s strong performance in January with a record 14,000 cars sold
Market Cap of Transaction Capital: R6.5 billion
Opportunities and challenges in SA Taxi business
Overall assessment: Looking not too bad
Current stock level: 850c
Expectation of pro rata shares for Transaction Capital holders
Timing details expected in the circular.

Gold Price Movement
Gold weaker despite US and UK inflation data
Current gold price and chart analysis
Simon’s position in Anglogold Ashanti*
Observations on unexpected weakness in gold price after inflation data

Canal+ Offer for MultiChoice
MultiChoice facing a 105 rand Canal+ offer
Market sentiment: Canal+ likely to come back with a better offer
Current stock price: 104.63
Speculation on possible offer prices: 120, 135, or even 160
Market confidence in Canal+ making a mandatory offer

Global Market Trends and Dollar Strength
Dollar strength in global markets
DXY trading at 104.87
Money flowing into the US due to fear and concerns
Impact on Rand: Trading at 19.07
Market skepticism about inflation concerns

Inflation Analysis
Recent US and UK inflation data
Market reaction to inflation numbers
Central bank concerns about reaching inflation targets
Jerome Powell’s cautious approach and potential rate cuts
Local inflation expectations and potential rate cuts in South Africa
The challenge of getting back to the inflation target

* I hold ungeared positions.