Brendon Hubbard of Clucas Gray on what the smart money is doing
05 October 2023 - 05:00
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A Cashbuild outlet in Rustenburg, North West. Picture: MARTIN RHODES
Brendon Hubbard, portfolio manager at Clucas Gray
BUY: Hosken Consolidated Investments
Hosken Consolidated Investments (HCI) is an attractive share due to its 49.9% holding in Impact Oil & Gas. The latter holds stakes, together with TotalEnergies, in two oil blocks off the Namibian south coast, called Venus. Next year HCI plans to sell its stake in the Venus oilfield for $500m-$1bn. In addition to the Venus oilfield, Impact also owns stakes in other offshore oil deposits in South Africa in the Orange River Basin (south of Venus), and in the Transkei and Algoa fields. Also, it’s expected that parliament will expedite the promulgation of the Upstream Petroleum Resources Development Bill, which is required before any drilling offshore can begin on identified areas.
SELL: Cashbuild
The building supply sector is under pressure, and Cashbuild is no exception. After the Covid pandemic, there was a huge wave of home renovations in the country. But that didn’t last, and there is now a serious hangover in the renovations market, which is aggravated by South Africa’s grim macroeconomic situation.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
BROKERS’ NOTES: Buy HCI, ditch Cashbuild
Brendon Hubbard of Clucas Gray on what the smart money is doing
Brendon Hubbard, portfolio manager at Clucas Gray
BUY: Hosken Consolidated Investments
Hosken Consolidated Investments (HCI) is an attractive share due to its 49.9% holding in Impact Oil & Gas. The latter holds stakes, together with TotalEnergies, in two oil blocks off the Namibian south coast, called Venus. Next year HCI plans to sell its stake in the Venus oilfield for $500m-$1bn. In addition to the Venus oilfield, Impact also owns stakes in other offshore oil deposits in South Africa in the Orange River Basin (south of Venus), and in the Transkei and Algoa fields. Also, it’s expected that parliament will expedite the promulgation of the Upstream Petroleum Resources Development Bill, which is required before any drilling offshore can begin on identified areas.
SELL: Cashbuild
The building supply sector is under pressure, and Cashbuild is no exception. After the Covid pandemic, there was a huge wave of home renovations in the country. But that didn’t last, and there is now a serious hangover in the renovations market, which is aggravated by South Africa’s grim macroeconomic situation.
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Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.