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This will be our last newsletter message for the year. And what a year it has been! Some stocks have done amazingly well, and others have been a huge disappointment. Lots of highs and lows, but never a dull day. We have certainly been kept very busy. We will be working and online throughout the forthcoming weeks, over the festive season. We will be replying to your emails and able to execute on any client requests, including share sales and purchases. The office phone line 078 533 1063 will be fully operational. If you have any requests please call us on that number. Alternatively (actually much better) email us on support@vestact.com. We will get back to you promptly.
We wish everyone a very happy and safe festive period. Bring on 2018!
To market to market to buy a fat pig. Local markets were jittery again yesterday. Shares in Europe and the US have been stable, this looks like a developing market sell off. The Santa Clause rally is sticking to the snowy areas. It is far too hot here in SA for that thick red jacket. All eyes on this weekend, what a huge moment in our history. Steinhoff continued it's relief rally, up 25.8% yesterday. Expect more of that today, judging by it's price in Germany.
Byron's Beats
I am very glad that the JSE did not suspend trade in Steinhoff. It is one thing owning a share that has been caught out for fraud, it is another being forced to hold it because trade is suspended. Let investors and the collective market treat the share the way it deserves. Especially if the share is trading freely in Germany.
Of course the downside risk to that is if the share gets irrationally crushed and this self fulfilling prophecy collapses the company. It seems that the risk has paid off and the company will survive. Although things are still very fragile. All eyes on the meeting with the bankers next week and hopefully some sort of numbers from the company.
Market Scorecard. The All share index closed down 0.8%. Retailers, banks and resources all sold off. Even Naspers was off 3%. Local news has started to slow as South Africans head to the beaches. Dischem did a sneaky book build at their elevated share price and Naspers had an investor day in New York. Bob Van Dijk did mention that they will be exploring structural options to try and close the value gap with its stake in Tencent. Interesting. I have the webcast open to watch later today. In the US the S&P edged higher by 0.2%. Democrat Doug Jones won the Alabama senate seat. This could pose as a thorn in Trumps tax cuts, lets wait and see.
Bright's Banter
Venmo vs Apple
Earlier this month, Apple announced a new feature called Apple Pay Cash that allows its users in the U.S. to be able to send money to friends and family via iMessage. The aim is to eventually have this service available to all Apple users with an iPhone, iPad, Apple Watches etc. This feature was announced at the Apple's annual developers' conference in June to compete head on with services such as Venmo and Jack Dorsey's Square Cash.
Venmo is a PayPal owned payment app which is very popular amongst millennials as it is a convenient way to send money to friends and family. I like how American companies get so excited about these solutions to their payment problems when South Africans have been enjoying this for so many years, but we digress.
Venmo has benefitted from being a first mover. Their total payment volumes increased from $2.1 billion in the third quarter of 2015 to $9 billion in the most recent quarter. Our money here at Vestact is on Apple Pay Cash to eat Venmo's lunch. Apple has over a billion active devices which could potentially support this service, all they have to do is press the button on their next iOS update and voilà, we will be able to do geopayments to anyone without having to log in to our banking apps. What a time to be alive!
You will find more statistics at Statista
Home again, home again, jiggety-jog. Steinhoff is up another 19% on the open. At least the rest of our market has followed suit. It is green all round, for now. Futures in the US look flat, I wonder how these tax negotiations will go with one less Republican Senator.
Sent to you by Team Vestact.