Best-laid plans for SAs private hospital groups
The Covid-19 pandemic has not evolved as initially expected and the impact on the South African private healthcare sector has been complex. We investigate the potential longer-term implications of the pandemic’s fallout on the operations of South Africa’s big three hospital groups: Life Healthcare, Netcare and Mediclinic. Preparing to peak The lockdown measures that were […]
Trawling for opportunity
For thousands of years, humans have relied on fishing to provide a reliable and sustainable food source. Today, commercial fishing has morphed into a global industry, with significant barriers to entry and large amounts of capital investment required. We explore the South African fishing industry and consider its ability to meet the insatiable global demand […]
Investment in motion
Bearings are mechanical devices that enable motion between two parts by reducing the frictional forces between objects and providing a surface to roll on enabling faster, smoother and less energy-intensive movement. From large manufacturing equipment to roller skates, ceiling fans to bicycles, bearings are found in almost anything that has moving parts. Svenska Kullagerfabriken (SKF), […]
The behemoths of US banking
The evolving COVID-19 pandemic has wrought havoc on the global economy and banks find themselves in the eye of the storm. Their funding lines have been disrupted, many of their customers will struggle to repay their debts and, as interest rates and customer transactional activity declines, their income will reduce. Bank shares have been some […]
Is the sun setting on South African gold?
South Africa is well known for its abundant commodity endowment with massive reserves of chrome ore, platinum group metals (PGMs), diamonds and, most prominently, gold. Over a century of mining gold in South Africa has resulted in many mines reaching depths of over four kilometres, where natural rock temperatures frequent 50°C and rock pressure is […]
Opportunity in Omnia
Omnia is a diversified group that supplies chemicals and specialised services to the chemical, mining and agricultural sectors in Africa. Although the company has generally delivered good returns over the long term, recent earnings have been weak. Omnia has made considerable capital investments over the last five years, which are expected to result in meaningful […]
Still lots of room at the inn
The South African hotel landscape boasts many large, home-grown brands that have managed to remain relevant despite the arrival of several international hotel groups over the last 20 years. We discuss the South African hotel industry, its challenges and opportunities, and the outlook for two JSE-listed entities – City Lodge Hotel Group and Tsogo Sun […]
Fast fashion, if you are not first you are last
For fashion retailers, speed and flexibility are increasingly important. Instant gratification has become the norm and clothing retailers are in a race to bring the latest trends to market. As a result, traditional bulk, bi-annual ordering is being replaced by regular, small batch replenishment. We examine why the accompanying quick response manufacturing (QRM) has been […]
Sappi skids from magazines to clothing
Originally a South African forestry and paper milling company, Sappi is today a global leader in sustainable woodfibre products and solutions. Their acquisition-led global growth strategy, however, provides a sobering view of how a company can misread its market, destroying substantial shareholder value in the process. Sappi’s South African business is therefore still their biggest […]
Curro class of 2030
Every parent wants a better future for their child and most are willing to make sacrifices to achieve this, but the reality in South Africa is that very few can afford to do so. With our consistently poor scoring in global benchmarking studies, it is no secret that the South African government school system is […]
