Load shedding has been a headache for us all.
If you hoped it would end thanks to maintenance Eskom did during lockdown - you were disappointed. As our economy has been opening up we've sporadically had load shedding, with a turn very close to the highest amount of reduced supply in SA's history.
It's become clear that the solution to this problem likely won't come from Eskom alone…
... ››› more
Eskom recently submitted documents to the Centre for Environmental Rights (CER) stating that it could possibly keep its Grootvlei, Camden and Hendrina power stations open as late as 2030. These are all power stations at the end of their lives, that would have been shut in part starting this year!
Eskom is doing this to keep extra capacity in the grid, and avoid load shedding.
But here's t... ››› more
On 24 February 2020, I sent out an article:
Coronavirus + Eskom + Moody's + Chart = Rand disaster
At the time the South African rand was trading at R14.20.
I predicted that the USD/ZAR would move to the first target at R16.00 within a couple of weeks…
This was due to the following factors at the time…
• The Coronavirus was declared by the WHO as a global health emergency. ... ››› more
Speak to any financial advisor with half a brain and he'll tell you to go offshore.
Sure, South Africa may one day reclaim our early 2000 title of “investment darling of the emerging markets”, but it's not going to happen any time soon.
Our problems are simply too big. There's is no quick fix to Eskom, our ever-increasing sovereign debt or our 29% unemployment rate. So yes, that means ... ››› more
It's been a terrible start for the rand.
Last week we saw it hit R15.00, dropping it down over 6.07% for the year.
According to Bloomberg, the rand was the second-worst performing currency out of the 24 emerging-market currencies world-wide.
And it looks like this is only the beginning.
In today's article we'll discuss the four reasons why I expect the rand to plunge to R1... ››› more
Most people have notoriously bad memories.
Less than a month ago, the entire country was going through one of the most serious bouts of load shedding we have ever had.
Remember stage 6!!!
Yet after just a few weeks of consistent power supply, many have forgotten what it felt like and that it can return any day now!
Let's recap what happened in December.
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Electricity is fundamental to the way we live our lives. You simply can't live without it. Just consider the disastrous effect of load shedding this past week.
Roads in chaos, stockpiles of food rotting in refrigerators and many downstream services just grinding to a halt.
And yet, if you look at the big picture… And, I'm talking the development of mankind “big picture”, we've only h... ››› more
The JSE is down 3.95% for the past three months, 5.13% in the past six and we're only up 8% over the past three years.
With politics the way they are and the performance of the South African economy many investors are asking whether they should bail on SA listed stocks for good.
I'll give you my take on the situation now, let's first have a look at the facts:
SA’s economy is already... ››› more
Early on Tuesday last week, Finance Minister Tito Mboweni announced that Eskom will be receiving an additional R59 billion over the next two years, to help Eskom service its debt.
There are mixed reviews about the bill and how it will help South Africa.
Some people say this could be the light at the end of the tunnel and others say it's just another wait for an oncoming train…
As ... ››› more
In the last few months I've sent out a number of predictions on different resource companies.
And at the end of the first quarter, we managed to bank six winning resource company trades, generating over 200% in gains.
At the start of the second quarter for 2019, I have my eye on a new sector which I'm looking to trade and profit from.
Thanks to Moody's, Eskom and BRICs - Here's why I e... ››› more
If you're in your 50's you might have heard of ‘prescribed assets' before - for millennials this term might be ‘foreign'.
But it is very actual - in fact it's from the 1980's and it was part of the Apartheid government playbook.
In short - the government back then forced pension funds through legislation to invest up to 77.5% of their funds into parastatals and government bonds.
No... ››› more
South African stocks ended 2018 as the worst year since 2008.
The FTSE/JSE Africa All Share Index ended the year down 11%, its worst performance since 2008. But this was still better than the emerging market average of -17%...
It's fair to say that 2018 was a torrid year for investors especially considering it started very promising with SA's new president replacing Zuma…
But a strin... ››› more
In May 2018 I told investors about Eskom's impending coal supply shortage, the Eskom Coal Cliff.
For years Eskom hasn't invested in new coal mines, and it hasn't been willing to sign new contracts with large mining companies.
Whilst diversification of supply is a good idea, the fact remains there are only a handful of miners that can supply the massive volumes that Eskom requires to keep its... ››› more
On 13 August Wescoal, a small coal miner on the JSE, had sales equaling to 3.5 million shares for the day.
This is roughly equal to 18 times the average shares traded per day - for the last year!
Clearly there was major interest in the company…
And, considering that volume trade in the company is 30% higher since July than it has been for the past year you'd be right to guess there's so... ››› more
Eskom said earlier this month at its State of the System update it got National Treasury approval to embark on a major coal procurement. All in all Eskom needs to lock in about 85% of its primary energy requirements, which is in excess of 100 million tons of coal per year.
At the same time, the price of export coal has soared.
In short, this situation is a massive positive for coal miners.... ››› more
In an interview with Fin24 energy expert Ted Blom said that the possibility of load shedding this winter is larger than the Day Zero water crisis in Cape Town…
Eskom responded by saying that its “Recovery plan to avoid load shedding working well.”
Acting CEO Phakamani Hadebe briefed the media saying, “Only six out of 15 power stations are experiencing coal shortages.”
... ››› more
There is only one way to profit from Eskom's Coal Cliff - and SA's energy revolution and that is to invest in these Three Penny Stock Eruptors:
HERE'S HOW TO CLAIM YOUR COPY TODAY Read it and you will discover:
Penny Stock Eruptor #1:
A coal miner that's set to quadruple production and come to Eskom's rescue
Penny Stock Eruptor #2:
The only such business in Africa, with th... ››› more
There is only one way to profit from Eskom's Coal Cliff - and SA's new energy revolution and that is to invest in these three Penny Stock Eruptors:
Penny Stock Eruptor #1:
A coal miner that's set to quadruple production and come to Eskom's rescue
Penny Stock Eruptor #2:
The only such business in Africa, with the technology to turn refuse into electricity
Penny Stock Eruptor #3:
A So... ››› more
There are two approaches to making money from the markets.
The well-trodden path. The path almost everyone seems to take. The one that grinds out a decent return over the course of a life. Safety first.
If you're patient, if you're willing to wait 30 or 40 years for a meaningful return on your capital… that is the path for you. Go out today, buy an ETF and never look at an individual sha... ››› more
Rolling black outs are something we've become used to here in SA during the cold winter months. But rolling black outs in March, that's a bit early isn't it. Apparently not. Earlier today, Eskom warned that “seven days of continuous rain have affected [its] power stations in Mpumalanga and is still affecting coal mines”. The result? The production of electricity has come into jeopardy leaving ... ››› more
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