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Bearing up
RE:CM AND CALIBRE (RACP) – the investment vehicle headed by well-known asset manager Piet Viljoen – is clearly in no hurry to plunge into the market. RACP’s quarterly portfolio as at end-March held pretty much the same position as at year-end 2010, with more than 90% of the portfolio still held in cash.
That means RACP didn’t take advantage of the early year market weaknesses and the recent jitters caused by political upheaval and earthquakes. It also means RACP is banking on there still being a big sell-off (ulp) in equities this year.
It might be difficult for RACP preference shareholders – the compiler of this column included – to endure such “inaction”, especially if the market continues to offer value. (The irrepressible Vic de Klerk has already been bending our ears about how much value RACP might have created by buying BAT and Woolworths for their respective yields.)
Things, of course, need to be viewed over the longer term and it really still is early days for RACP. Meanwhile, what we’d really like to know is which equities (the 9% portion of the portfolio) have cracked the nod at RACP.
Your wish is my command
CAPE EMPOWERMENT (CAP) is finally flexing its muscles at security group Command Holdings – currently suspended on the JSE. Command has been asked to host a shareholders’ meeting aimed at removing four directors and appointing four new ones – including CAP’s Jeremy de Villiers and Theodore Rai (the brother of Cape Empowerment Trust [JSE:CAE] prime mover Shaun Rai). Such a comprehensive board shake-up – the rationale of which is hopefully outlined in some detail in a circular – will need careful mulling.
But many Command shareholders are hacked off at Command’s frustrating suspension and will probably not resist board changes – especially if a shake-up hastens CAP’s efforts to merge its fast-growing security assets into the company.
The SPECtacle notes current Command CEO Shaffie “The General” Mowzer – now concluding the Comwezi acquisition – doesn’t appear to be in the firing line. Not yet, at least.
Under Lok and key
YOU’D BE FORGIVEN for mistaking William Tell Holdings [JSE:WTL] ’s recent board shuffling with a daytime TV soapie. The retrenchment of group CEO and founder Barry Lok – purportedly after a bout of strange behaviour – quickly followed the announcement of MD Wally van Coller’s immediate and unceremonious suspension. Things were clearly untenable, because it’s not every day you see the majority shareholder of a family-owned company booted out.
According to reports, Lok’s paranoia had reached spy-thriller proportions. That made the subjects of his accusations – from his executive team down to the average factory worker – feel justifiably awkward. The question is: Did Lok chase Van Coller away? If so, surely Van Coller should be reinstated?
Bum in the yoghurt
EARLY LAST YEAR Finweek noted what a sweet deal dairy group Clover had pulled off when it sold its 45% holding in the Clover-Danone joint venture back to food multinational Danone for around R1,1bn. Not only did Clover Industries Limited [JSE:CLR] cash in a JV arrangement at well above the book value (R600m in the annual report) but it still benefited from an arrangement to provide raw milk and distribution services to Danone for the next few years.
If there was a drawback, Clover did lose a sizeable foothold in the dairy products market (with the Danone-Clover JV holding an imposing 44% market share in the yoghurt category). But those clever cats at Clover will still get to cream off that market share with news that next month Danone will outsource all its merchandising services to Clover. Quite unbelievable, really….
RE:CM AND CALIBRE (RACP) – the investment vehicle headed by well-known asset manager Piet Viljoen – is clearly in no hurry to plunge into the market. RACP’s quarterly portfolio as at end-March held pretty much the same position as at year-end 2010, with more than 90% of the portfolio still held in cash.
That means RACP didn’t take advantage of the early year market weaknesses and the recent jitters caused by political upheaval and earthquakes. It also means RACP is banking on there still being a big sell-off (ulp) in equities this year.
It might be difficult for RACP preference shareholders – the compiler of this column included – to endure such “inaction”, especially if the market continues to offer value. (The irrepressible Vic de Klerk has already been bending our ears about how much value RACP might have created by buying BAT and Woolworths for their respective yields.)
Things, of course, need to be viewed over the longer term and it really still is early days for RACP. Meanwhile, what we’d really like to know is which equities (the 9% portion of the portfolio) have cracked the nod at RACP.
Your wish is my command
CAPE EMPOWERMENT (CAP) is finally flexing its muscles at security group Command Holdings – currently suspended on the JSE. Command has been asked to host a shareholders’ meeting aimed at removing four directors and appointing four new ones – including CAP’s Jeremy de Villiers and Theodore Rai (the brother of Cape Empowerment Trust [JSE:CAE] prime mover Shaun Rai). Such a comprehensive board shake-up – the rationale of which is hopefully outlined in some detail in a circular – will need careful mulling.
But many Command shareholders are hacked off at Command’s frustrating suspension and will probably not resist board changes – especially if a shake-up hastens CAP’s efforts to merge its fast-growing security assets into the company.
The SPECtacle notes current Command CEO Shaffie “The General” Mowzer – now concluding the Comwezi acquisition – doesn’t appear to be in the firing line. Not yet, at least.
Under Lok and key
YOU’D BE FORGIVEN for mistaking William Tell Holdings [JSE:WTL] ’s recent board shuffling with a daytime TV soapie. The retrenchment of group CEO and founder Barry Lok – purportedly after a bout of strange behaviour – quickly followed the announcement of MD Wally van Coller’s immediate and unceremonious suspension. Things were clearly untenable, because it’s not every day you see the majority shareholder of a family-owned company booted out.
According to reports, Lok’s paranoia had reached spy-thriller proportions. That made the subjects of his accusations – from his executive team down to the average factory worker – feel justifiably awkward. The question is: Did Lok chase Van Coller away? If so, surely Van Coller should be reinstated?
Bum in the yoghurt
EARLY LAST YEAR Finweek noted what a sweet deal dairy group Clover had pulled off when it sold its 45% holding in the Clover-Danone joint venture back to food multinational Danone for around R1,1bn. Not only did Clover Industries Limited [JSE:CLR] cash in a JV arrangement at well above the book value (R600m in the annual report) but it still benefited from an arrangement to provide raw milk and distribution services to Danone for the next few years.
If there was a drawback, Clover did lose a sizeable foothold in the dairy products market (with the Danone-Clover JV holding an imposing 44% market share in the yoghurt category). But those clever cats at Clover will still get to cream off that market share with news that next month Danone will outsource all its merchandising services to Clover. Quite unbelievable, really….
