Rowan Williams, portfolio manager at Nitrogen Fund Managers, on what the smart money is doing
21 November 2024 - 05:00
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Boxer is a soft discount retailer that is (for now) part of the broader Pick n Pay group. The Boxer business is uniquely positioned in the lower and mass market grocery retail sector to take advantage of the continued growth in demand for affordable and convenient groceries, tapping into a global consumer trend towards value-based retailing. The retailer has a long track record of delivery and as a separately listed entity is expected to maintain its double-digit growth in revenue and earnings, because it plans to double its 500-strong store base over the next seven years. Retail investors can participate in the IPO process or buy shares on the market on the listing day of November 28.
Sell: PGM miners
Platinum group metal (PGM) miners Impala Platinum, Anglo American Platinum, Northam Platinum and Sibanye-Stillwater have rallied hard from their lows as PGM prices bounced, partly driven by China’s stimulus announcements and the prospect of sanctions on exports by Russian PGM producers. However, the PGM price rally is fading. Automobile catalyst demand remains muted as new sales of vehicles with internal combustion engines continue to disappoint, notwithstanding the prospects of waning interest in electric vehicles, which do not include PGM metals. Most PGM miners continue to be cash flow negative at spot PGM prices and balance sheets remain stretched. We expect that PGM miners’ prices will continue to retrace as prices of these metals remain low.
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BROKERS’ NOTES: Buy Boxer, sell PGM miners
Rowan Williams, portfolio manager at Nitrogen Fund Managers, on what the smart money is doing
Buy: Boxer
Boxer is a soft discount retailer that is (for now) part of the broader Pick n Pay group. The Boxer business is uniquely positioned in the lower and mass market grocery retail sector to take advantage of the continued growth in demand for affordable and convenient groceries, tapping into a global consumer trend towards value-based retailing. The retailer has a long track record of delivery and as a separately listed entity is expected to maintain its double-digit growth in revenue and earnings, because it plans to double its 500-strong store base over the next seven years. Retail investors can participate in the IPO process or buy shares on the market on the listing day of November 28.
Sell: PGM miners
Platinum group metal (PGM) miners Impala Platinum, Anglo American Platinum, Northam Platinum and Sibanye-Stillwater have rallied hard from their lows as PGM prices bounced, partly driven by China’s stimulus announcements and the prospect of sanctions on exports by Russian PGM producers. However, the PGM price rally is fading. Automobile catalyst demand remains muted as new sales of vehicles with internal combustion engines continue to disappoint, notwithstanding the prospects of waning interest in electric vehicles, which do not include PGM metals. Most PGM miners continue to be cash flow negative at spot PGM prices and balance sheets remain stretched. We expect that PGM miners’ prices will continue to retrace as prices of these metals remain low.
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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.