Has Trump Shown us how Tariffs Resolve?

🎯 Tariff Talks: Where Are We Now? Simon Brown recaps the evolution of Trump-era tariffs, with recent developments around: US-China deal: effective 54% tariff on Chinese goods, 10% on US goods UK, Mexico, Canada, Vietnam likely settling around 10% Expectations for other regions like EU, Saudi Arabia, South Africa Conclusion: tariff escalation seems contained, reducing recession risks Key Insight: Markets are stabilising as the worst-case tariff scenario is dialed back. 💊 Trump vs. Big Pharma Trump targets high drug prices in the US, pushing for: 30-day deadline for pharmaceutical companies to lower prices Unclear legal basis; possible price controls debated Pharma stocks bounce back slightly after initial drop Simon's Take: Healthcare is risky for investors due to constant regulatory pressure — he stays away. 💡 Lewis Group: Surprise Trading Update Lewis expects a 55–65% EPS increase, sparking: A ~16% stock price surge Ongoing share buybacks and high dividends (7.8% yield) Strategy: loan book expansion, carefully managing bad debts Verdict: Strong fundamentals, still looks cheap. Simon and analysts are bullish. 📈 🛒 Boxer's Debut Results First results since Boxer listed: Modest headline earnings (new shares diluted results) 25 new superstores & 35 liquor stores planned annually Operating margins on par with Shoprite* (~5.5%) Stock trading at fair valuation (R64.77), analysts' target: R76.66 Insight: Promising growth but priced in. Shoprite still Simon's preferred pick. 🏪 🏅 AngloGold Ashanti*: Cash Flow Soars Highlights from AngloGold's trading update: 7x increase in free cash flow New dividend policy: $0.125 quarterly minimum + 50% of FCF 26% production increase (aided by Egypt acquisition) Concerns: strong rand + weak gold price pressure the stock Simon's Position: Holds the stock, likes the dividends — cautious on expansion. 🪙 🏘️ Calgro M3 vs. Balwin Property sector comparison: Calgro M3*: Sub-R1m homes, shifting from gov't subsidies to open market Balwin: Mid-to-high-end units (R1.1m–R3m+), annuity income from parks & amenities Both cautious due to election risks and past invasions Bottom Line: Simon owns Calgro, likes both for their contributions to housing. 🏡 Simon Brown * I hold ungeared positions. All charts by KoyFin | Get 10% off your order