ALEC HOGG: Something very interesting, Dave. You will remember our good friend Deon Basson. He was often in the studio with us, an investigative journalist of great repute, who focused his attention on a company called Sharemax. Now Julius Cobbett at Moneyweb has been doing the same thing, finally getting his hands on financials not looking good at all. And today comes the news that Sharemax looks to be listing perhaps on the JSE. Niki Vontas is the chief executive of a company called Bonatla. It’s a small business. It’s only an 8c share, or that was at one stage a 65c share, and it is going to be the vehicle through which Sharemax apparently is going to be listing all of its properties. Niki joins us now.
Is this you making this takeover option – in other words, the flea trying to eat the elephant, or has Sharemax approached you, Niki, to use Bonatla as a vehicle?

NIKI VONTAS: Well, we are not a flea, and Alec, good evening. It’s effectively what they call the Babanaltla [?].

ALEC HOGG: OK, but you are a R40m company, and they are a R5bn company. So you are not a flea, you are a mouse against an elephant, I guess.

NIKI VONTAS: Exactly. It’s basically David against Goliath, to be a little more novel. But you know in business, Alec, size doesn’t count. It’s more intellect that counts. And effectively we, a few months ago if you remember, we did a hostile takeover of the Bluezone portfolio, which was an embattled syndication company. We had to spend R30m of our cash to settle creditors, clean up this company with a Section 311 compromise, and with a lot of dirt, with a  lot of malpractice, and eventually 1 500 shareholders gave the vote of confidence on this small portfolio. Obviously the Sharemax property company is a much bigger exercise, and it’ll require much more work, and it’s not going to be a very easy transaction.

ALEC HOGG: Ja, the Bluezone itself is pretty controversial, and you are managing to put that down.

NIKI VONTAS: Yes, we basically settled the creditors, settled the arrears due to Nedbank, spent R30m including legal fees, because we undertook to support the shareholders’ fight against all odds. And obviously Sharemax is going to be a very difficult exercise. It’s not going to be easy because it’s obviously much more of a takeover by Bonatla than a walk in the park.

ALEC HOGG: You’ve only given yourself 15 days to do a due diligence on 39 companies in this rather murky operation.

NIKI VONTAS: We have employed a very professional team of specialists … Sanlam Properties, and they’ve already done comprehensive work for the last two weeks effectively.

ALEC HOGG: All right. So you are confident you’ve got enough time. Have you spoken with the Sharemax directors at all? Are they supporting this takeover?

NIKI VONTAS: Yes, and I think they know they have to support it.

ALEC HOGG: Why?

NIKI VONTAS: Because I think the developments in which they are engaged cannot be any more funded internally through the syndication operations, especially the villa. Secondly some of the structurings that were used in the past, especially the debentures, obviously have to be reviewed, because obviously the debenture structure is one that becomes a dinosaur in property funding, and all the trends are towards equity.

ALEC HOGG: But this has been your initiative – this has been your idea?

NIKI VONTAS: It is my initiative and  I’m told that there were another seven bidders against us that came to the front long before us in fact, because obviously we are most probably the last in the list.

ALEC HOGG: Interesting times, and we will be following this very closely – the very controversial takeover possibility of the mouse of the elephant.

courtesy of Moneyweb

JSE up in thin volumes

Aug 16 2010 

Johannesburg – The JSE ended slightly firmer on Monday, with light total volumes and low total value traded underscoring nervousness among investors who remain on the sidelines due to heightened global economic uncertainty.

At its close the JSE all share index added 0.21%, with resources gaining 0.32% and gold miners climbing 0.64%. But platinum miners fell 1.10%. Banks rose 0.85% and industrials eked out 0.11% gain, and financials were 0.17% higher.

The rand was bid at 7.26 to the dollar from 7.31 at the JSE’s close on Friday. Gold was quoted at $1 224.80 a troy ounce from $1 212.28/oz at the JSE’s previous close, while platinum was at $1 532.00/oz from $1 520.50/oz before.

Mpho Mojalefa, a trader at BJM Client Services, said low value traded and light volumes indicated that investors were not prepared to commit themselves amid lack of direction.

Mojalefa said foreigners were buying US bonds, spreads were widening in Europe and gold price was higher, underlining uncertainty about the global economic recovery. “The US manufacturing data came below expectations,” he said.

Earlier, Japan reported downbeat economic data that raised concerns about the global economic recovery.

Dow Jones Newswires reported that US stocks fell early on Monday after weaker-than-expected reports on New York-area manufacturing and Japan’s gross domestic product fuelled concerns over slowing global growth.

The Dow Jones Industrial Average shed 55 points in early trading as investors flocked to safer havens.

The price of gold rose to its highest level in six weeks, while the yield on the benchmark 10-year Treasury note fell to its lowest level in more than a year.

- I-Net Bridge

Article from Fin24

We once again managed to trade sideways, as most companies are probably busy with budget and strategy meetings. Local importers and exporters showed little interest in the currency markets yesterday. Most traders are still trying to figure out what impact the Soccer World Cup will have on the local currency. For now we remain in tight ranges until fresh economic indicators give some direction to the currency markets.

Developed countries may slip back into recession if they abandon strategies deployed to battle the global financial crisis too early, the head of the International Monetary Fund warned on Monday. Recovery in private demand and employment are necessary conditions for governments to begin unwinding policies designed to support their economies, though the right timing depends on specific conditions in each nation, Dominique Strauss-Kahn said. “Recovery in advanced economies has been sluggish,” he told reporters in Tokyo. “We have to be cautious because the recovery has been fragile.” Marek Belka, the head of the IMF’s European department, echoed Strauss-Kahn’s comments, saying the continent’s economy was not yet on solid ground. Current levels Rand / Usd 7.3800-7.4300 Rand / Euro 10.6200-10.6700 Rand / Sterling 12.1000-12.1500 Jpy / Rand 12.20-12.25 Jpy / Usd 90.43 Usd / Euro 1.4388 Gbp / Usd 1.6400 Gold $1 136.00 Expected ranges Rand / Usd 7.3500-7.5500 Rand / Euro 10.5500-10.7500 Rand / Sterling 12.0000-12.2000 Jpy / Rand 12.10-12.30 ]]> http://rdgbrokers.co.za/2010/01/budgetsoccer-world-cup/feed/ 0 http://rdgbrokers.co.za/2010/01/great-telkom-service/ http://rdgbrokers.co.za/2010/01/great-telkom-service/#comments Tue, 19 Jan 2010 23:55:04 +0000 RDG Brokers http://rdgbrokers.co.za/?p=319 Hi All

Apologies for not keeping my site up to date, however our local ADSL provider is the culprit for this delay, so I ventured out and got myself a backup by way of a 3G Vodacom contract to keep myself and you up to speed.  I logged a complaint with Telkom in December and of course they denied the fault is theirs but be rest assured it is”pathetic”.  I would like to see their promise fullfilled for the 2010 world cup 100%.  Okay

Not to worry articles are about to follow!!

Regards

Ricardo

Courtesy of Accredinet

The dollar was under pressure on all fronts on Thursday, after breaking down to 15-month lows the previous day, and looked in peril of marking a 14-year low against the yen as Japan signaled it was watching but unlikely to step in. Dealers said short-term players continued to sell the dollar against the Japanese currency, after it fell to a 10-month low of 87.21 yen JPY= on Wednesday, although Japanese companies were buying dollars at the lower levels, helping keep it off the low. The catalyst for Wednesday’s breakdown, which took the greenback to a 15-month low against the euro and a basket of currencies, was an indication from the Federal Reserve that the dollar’s fall has been orderly and interest rates will stay low for some time. Market players said it was likely to remain under pressure in potentially volatile trading on Thursday, when U.S. markets are closed for Thanksgiving. But talk of an options barrier at 87.00 yen, as well as expected buy orders ahead of last January’s 13-year low of 87.10 yen, could lend it some support. Current levels Rand / Usd 7.3300-7.3800 Rand / Euro 11.1000-11.1500 Rand / Sterling 12.2500-12.3000 Jpy / Rand 11.75-11.80 Jpy / Usd 86.70 Usd / Euro 1.5105 Gbp / Usd 1.6688 Gold $1 193.00 Expected ranges Rand / Usd 7.3000-7.5000 Rand / Euro 11.0500-11.2500 Rand / Sterling 12.1500-12.3500 Jpy / Rand 11.70-11.90

article courtesy of Accredinet Financial Solutions

Swift interest rate hikes aimed at containing inflation in product and asset prices could cause another downturn in the slowly recovering economies of the United States and Europe, the head of the World Bank said. “Waiting for bubbles to burst and then cleaning up the aftermath is now a new lesson of what not to do,” World Bank President Robert Zoellick said in an article published in Wednesday’s Financial Times. “But tightening interest rates too abruptly — especially where recoveries are weak, such as in the U.S. and Europe — could trigger another downturn.” Zoellick noted that Australia’s central bank had already raised interest rates, which may put Asian countries with close links to Australia’s economy under pressure to follow suit. “But raising rates while the Fed keeps its rates close to zero would cause Asian currencies to appreciate. This would make their exports more expensive and decrease overseas sales, hurting recoveries based on exports.” He said there was also competition from China: “The renminbi is tied to a declining U.S. dollar that makes Chinese goods cheaper to buy than those of Asian rivals.” Current levels Rand / Usd 7.4000-7.4500 Rand / Euro 11.1400-11.1900 Rand / Sterling 12.3300-12.3800 Jpy / Rand 11.85-11.90 Jpy / Usd 88.38 Usd / Euro 1.4988 Gbp / Usd 1.66618 Gold $1 177.00 Expected ranges Rand / Usd 7.3500-7.5500 Rand / Euro 11.1000-11.3000 Rand / Sterling 12.2000-12.4000 Jpy / Rand 11.80-12.00 ]]> http://rdgbrokers.co.za/2009/11/gdp-outperforms-expectations/feed/ 0 http://rdgbrokers.co.za/2009/11/south-africa-out-of-recession/ http://rdgbrokers.co.za/2009/11/south-africa-out-of-recession/#comments Tue, 24 Nov 2009 15:43:59 +0000 RDG Brokers http://rdgbrokers.co.za/?p=305

South Africa’s rand continued to trade sideways with little interest shown by local traders. We have 3rd GDP figures released today which will give us an indication of the state of our local economy, economists expect 0.2 percent growth. Most major currencies are trading sideways which will probably contribute to another quiet day locally. We will see exporters close to 7.60/$ and importers will probably look to buy currency below 7.50/$. The dollar fell broadly on Monday after dovish comments from a U.S. Federal Reserve official added weight to expectations that U.S. monetary policy would stay ultra-loose for a prolonged period. The dollar fell to a six-week low against the yen and the euro gained more than three quarters of a percent against the greenback. Moves were exacerbated by thin liquidity with Tokyo markets shut and ahead of Thursday’s U.S. Thanksgiving holiday. St. Louis Federal Reserve President James Bullard said on Sunday that the central bank should keep alive its mortgage-related asset purchase program beyond a planned end date to help stimulate the economy. Traders were also encouraged to sell dollars in favour of higher-yielding and perceived riskier currencies as gold prices jumped to record highs, European shares rose 1.4 percent and oil prices CLc1 gained more than 1 percent.
Current levels
Rand / Usd	7.5000-7.5500
Rand / Euro	11.2300-11.2800
Rand / Sterling	12.4500-12.5000
Jpy / Rand	11.75-11.80
Jpy / Usd	88.83
Usd / Euro	1.4930
Gbp / Usd	1.6562
Gold	$1 167.00
Brent	$79.40
Expected ranges
Rand / Usd	7.4000-7.6000
Rand / Euro	11.1500-11.3500
Rand / Sterling	12.4000-12.6000
Jpy / Rand	11.70-11.90

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