Booming SA Inc. consumers (#432)

Simon Shares

• GameStop closed at US$90 on Tuesday.
• Jeff Bezos to step down as Amazon CEO.
• Apple knockout results.
• Ford to spend R15.8billion on local plant upgrade.

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Booming SA Inc. consumers?

We're seeing decent updates from local retailers so far this year, which is odd. Now let's be clear, decent not knock it out the park.

• Distell (JSE code: DGH) lost 41 days of sales in the second half of 2020 yet expects HEPS to be + 8.6% - +13.6%.
• Motus (JSE code: MTH) expect HEPS to be 0% - 5% higher, sent the stock up some 20% in two days.

A few possible reasons;

• Lockdown so we have money to spend
• Working from home saving on transport
• Social grants increased

36One calculate some R100bn extra from social grants but also people taking money out of pension schemes & retrenchment packages. The risk here is that this is temporary, which is certainly the 36One fear.

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