July 22, 2020
Day 119 of lockdown and Covid-19, cases may be moderating? Monday is 4 months of lockdown.
From @keithmclachlan on Datatec valuations
Westcon at $600m x R16.50 = R9bn + Logicalis x 10 PE x R16.50 = R5bn = R14bn..
Less 10% head office = R12.6bn equity value against R5bn current market cap..
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— Simon Brown (@SimonPB) July 22, 2020
I have never been a gold bull, in fact, the phrase I most used for gold stocks was that the only time you buy a gold stock was when you closed a short.
But golds time has arrived and the miners are going wild even with a vaccine at some point this trend is likely to continue.
The stimulus in the US and EU is massive and while stock markets are doing great, and maybe they can be propped up forever (certainly it worked post 2008/9 crisis) the underlying economies are not doing so great.
Gold ETFs are an easy way to get exposure but they have no leverage, so less risk and less reward. Gold miners offer that leverage so will do way better, but also bring a bunch of risk.
The Rand also brings risk as it strengthens.
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