Daily Market Blog: Card is king

30-JAN-15

"The company has monster margins, remembering that their job is to process the payment, they are neither a bank or financial institution, they are a technology business that benefits from increased consumer payments. They have the payment networks and whilst Bitcoin and some other "unique" payment methods may be adopted by out there consumers, the internet shopping and ecommerce shift is a huge opportunity for them."





To market, to market to buy a fat pig. There was a period, like the Grand old Duke of York, when we were up (we were up!) and then we were down (we were down). There were also periods of being neither halfway up or down, in equities markets it is one or the other, I remember a day when the local market was around flat, that hardly ever happens. By the end of the local session we were off, pretty much across the board. There was of course the small matter of the new(ish) Reserve Bank Governor Lesetja Kganyago delivering the deliberations of the MPC. He is from the Eastern Cape, from a small town by the name of Alexandria. If I am not mistaken, that is the region where Woolies sources their long life milk. Those in the know will confirm that it is before Kenton-on-Sea, if you are coming from the Port Elizabeth side. When there is enough rain, it is certainly a beautiful part of the world. It is a great story, the rise through the ranks (for the SARB governor), a masters from the London School of Economics through to ultimately his appointment as chief of the bank last November. I have not seen a note with his signature yet, Michael pointed out yesterday, have you?

Read More...

What we do at Vestact

Vestact manages money for private clients, in Rands in Johannesburg and in US Dollars in New York. We offer individualised investment accounts, and a high level of personalised service. Through low fees and effective stock-picking, we have delivered industry-beating investment performance. For a longer description of how we go about the business of asset management at Vestact, click here.

To open an account, call us on 087 985 0939, or come in and visit us at our offices at 24 Crescent Drive, Melrose Arch, Johannesburg.

Stocks which we currently recommend

Amazon.com is the world's leading online retailer.

Apple is global leader in tablet and smartphone technology.

Aspen is a rising global star in generic pharmaceuticals.

BHP Billiton is the world's largest industrial commodity mining company.

Bidvest is a diversified services company, which may re-organise its portfolio.

Cerner provides IT solutions in the healthcare industry.

City Lodge is a growing mid-priced hotel group in urban areas of SA.

Discovery is a healthcare services administrator and life insurer.

Facebook is a dominant social media platform provider.

Famous Brands is SA's largest quick-service restaurant group.

General Electric is a diversified investment holding company.

Google is the world's biggest search engine and online advertising platform.

Johnson & Johnson is the largest consumer healthcare and pharma company.

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Luxottica is the world's largest branded sunglass maker and retailer.

MTN Group is an emerging markets mobile telecoms giant.

Massmart is a big-box discount retailer in Africa, now 51% owned by Wal-Mart.

Mediclinic owns hospitals in SA, the UAE and Switzerland.

Naspers is an in emerging markets company focussed on digital TV & Internet.

Nike is a global designer and retailer of sporting equipment.

Omnia is a fertiliser and explosives producer.

Richemont is a luxury brands company expanding in Asia.

Sasol is a global player in chemicals and fuels technology.

Starbucks is a roaster, marketer and retailer of coffee.

Stryker makes hip and knee joint replacements and hospital beds.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Visa is a global payments technology company.

Woolworths is SA's leading organic food retailer & clothing business.

Archived Reports

CNBC Africa Hot Stoxx Videos

Newsletter Sign Up

Sign up for our free daily market newsletter.

Paul Theron's Tweets

Sasha Naryshkine's Tweets

Byron Lotter's Tweets

Michael Treherne's Tweets