Plague diary, week four: This entry has been abridged by the lockdown’s long weekend, but it was, I’m delighted to report, a short and spectacular session. Not only was the veggie patch not violated by the pesky primates (whereabouts, at the time of writing, unknown), but I had a rare rocket in the portfolio.
The share price of pharmaceuticals group Ascendis — where I have dosed up and down in recent weeks — took off like a Benzedrine addict being chased by a rabid Doberman.
In truth, I was a little baffled by the sudden price action last Wednesday through into Tuesday’s morning trading session. The fact that Ascendis’s Cyprus-based subsidiary, Remedica, manufactures chloroquine was hardly a revelation — and some punters had highlighted this fact on Twitter some weeks ago already (when Ascendis was trading under 40c). Obviously some market watchers are now of the view that Remedica, which has been slated for sale in Ascendis’s debt-culling exercise, has become a lot more marketable. Presumably banks might also be more willing to give Ascendis — which seems to be ticking over operationally — a little more leeway on loans. Still, sans Remedica I’m not sure how excited I could be about Ascendis. Consequently I took enough profit on Thursday to cover my cost of investing and buy a lunch at Magica Roma (when it reopens).
I can now also enjoy a carefree ride through whatever eventually transpires at Ascendis (and with a bit of luck grab some more Adcock Ingram). A little more alarming is that I have depleted my vitamin B tablets (made by an Ascendis subsidiary), which means I have to train harder in the backyard gym to keep the stress levels at tolerable levels (for the rest of the family).
At the time of writing I’m rather pleased to report that I have managed to fit in a 30-to 35-minute aerobics session on 13 out of the 14 lockdown days. I motivate myself with a "training soundtrack" — some righteously strident riffs from Rage Against the Machine and The Stooges — with a warm-down and stretch session facilitated by Miles Davis’s So What or the pastoral plucking of Pat Metheny. Speaking of exercising (options), I know last week I bemoaned the timing of the dash of cash mobilised from my offshore unit trusts. With the rand now back below R18/$, I feel more justified in my decision, and having a lighter bond in this testing time should preclude those all-too-regular 3am panic attacks.
Rupert to the rescue
In terms of investing, it was a quiet week. I added to my position in Reinet — a decision I certainly did not rue when reading last week’s riveting cover story in the FM.
I’m glad to have some of my measly savings entrusted to Johann Rupert, in a vehicle purpose built for capital preservation over the longer term. I also took a few more Sabvest when the price dipped under R27. On the other hand, I skimmed off a little of my position in Hosken Consolidated Investments — perhaps secretly hoping I get another chance to buy back at levels seen last month. Trellidor, Argent Industrial, Zeder, PSG Group and Montauk Energy are on the watch list, but my sense is that there may still be a better time to buy. I did snaffle a few Libstar — not a difficult decision when I cast an eye over this company’s food brands scattered all around our kitchen. Then could not resist a small punt of aluminium extrusion specialist Hulamin at under 90c.
Hulamin carries a market capitalisation of just R280m. When I think of the sprawling plant and equipment as well as the "green" aspects of aluminium products, I’m sure a takeover must be a distinct possibility. Market talk is that there is a large seller offloading Hulamin, so this might still keep a lid on a price rebound in the short term. I also took a few Naspers, where an intriguingly large discount persists despite the group’s best efforts to nullify this.
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