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Daniel Broby's  Instablog

Daniel Broby is Chief Investment Officer of Silkinvest (http://www.silkinvest.com). Silk invest is a specialist in frontier market investments. He runs a team based in London, Egypt, South Africa and Morocco. He joined Silkinvest having sold the hedge fund he founded (Danfonds Frontier Markets... More
My business:
Silk Invest
My blog:
riskbooks.com/Invest...
My book:
A Guide to Equity Index Construction
  • Not the fire sale the market believes

    Nampak Ltd is moving forward with the sale of under-performing and non-core assets following the dramatic 39% decline in its headline earnings per share. Some have suggested that this is a fire-sale by a panicked management which only recently fended off a partial takeover by Bidvest. 

    Africa’s second largest packaging producer does have good assets. The company recently invested nearly R100-million in the printing capability and capacity of its cartons and labels divisions. Hardly the move of a management engaged in a fire-sale.
    Nampak should, however, be looked at from its operating performance. The management is not being totally transparent about the true profitability of the company. It scared off Bidvest by releasing a profit warning last October. The warning, that earnings would fall 60-80 per cent, turned out to be way to pessimistic. In apparently unrelated incidents, a non-executive of the audit committee resigned a month later, followed by the CFO who resigned three months later.
    More »
    Tags: Africa, Packaging
    Jul 07 08:53 am | Link | Comment!
  • How not to get exposure to Emerging Middle East & Africa (GAF)

    The SPDR S&P Emerging Middle East & Africa

    At first blush an ETF in exotic markets with an expense ratio of 0.59%, a p/e ratio of 9 and a dividend yield of 4.5% looks attractive. Indeed, with turnover of only 7 per annum, the SPDR S&P Emerging Middle East & Africa ETF even appears to be well managed. Having risen from a low of USD 34.14 on the 9th March, to the current price USD 47.78, it is even performing well. Why then does GAF almost always appear in the most ‘shorted’ threshold securities list?
     
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    Tags: GAF
    May 13 04:37 am | Link | Comment!
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