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Simon’s weekly wrap: Right-sizing post lockdown, green investment and big tech’s risk

This week MoneywebNOW looked at timelines for the travel and leisure industry to normalise, the home DIY trend, Kruger International’s wind farm preference shares, the US anti-trust threat to big tech, value fashion vs secondhand garments, Combined Motor Holdings’ new normal, and more.
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South African vehicle sales under the hard lockdown collapsed to some 20 per day, as dealerships were closed and mostly unable to sell. Since then there has been a bounce back – as seen in Combined Motor Holdings’ interim results. Its rental business has also been right sized for a world in which people are traveling a lot less. I spoke to CEO Jebb McIntosh about the results and perhaps the biggest show of confidence: the dividend payment.

News that Cathy Pacific is to lay off another 5 900 staff indicates just how tough the travel and leisure industry is right now. We are traveling and holidaying again, but the airlines in particular are still operating at fractions of their capacity. I spoke to Viv Govender about the timelines for this industry to return to normal, as well as the home DIY trend we saw from the excellent Cashbuild first quarter update.

Green social investing certainly should be on any investor’s radar but locally we have had very few options, until now. Kruger International has bought just such an option via the Tsitsikamma Community Wind Farm in the Eastern Cape. Mia Kruger tells us these preference shares will be included in two of its funds, adding a new dimension that also brings solid yield and lower volatility.

The US Congress has published its big tech anti-trust report and at over 400 pages it is heavy reading. But how much of a threat is it to the companies mentioned (Apple, Alphabet, Facebook and Amazon)? I spoke with Anchor Capital’s Henry Biddlecombe and he agrees that while this adds risk, it’s not enough to consider exiting.

Also this week:

FNB’s Wayne McCurrie discusses Clicks’ annual results, Altron’s interim results and the Kumba Iron Ore’s third quarter update. AlphaWealth’s Keith McLachlan shares his preferred infrastructure stock and Rob Noble of RunwaySale talks about the sustainability of value fashion vs secondhand garments.

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