EPISODE · Sep 16, 2025 · 22 MIN
Three Stocks with Cash & Shares Worth more then their Market Cap
from WorldWide Markets with Simon Brown · host www.JustOneLap.com
🌍 World Wide Markets Ep. 648 – Cash-Rich Companies, Fed Cuts & China's Housing Woes Host: Simon Brown Date: 17 September 2025 📉 China's Housing Market New house prices fell 2.5% YoY – still negative since May 2022. Bottomed in October 2023 (-5.9%) and now trending upward. Reflects weak Chinese consumer confidence, similar to South Africa 🇨🇳🇿🇦. Evergrande's collapse still casts a shadow. Chinese New Home index YonY 🏦 Central Banks in Focus FOMC (US): Decision due Wednesday evening. Market expects 25bps cut, with more cuts likely in Oct & Dec. US unemployment says "cut", inflation says "don't cut" – a real policy squeeze. Trump pushing for FOMC shake-up & questioning quarterly reporting 📊. MPC (SA): Decision Thursday. Inflation at 3.5%, close to target. Mixed economist views: some say no cuts until 2027, others see cuts sooner. Fed cuts could influence SARB moves via rand 💵➡️🇿🇦. 📊 Trump vs. Quarterly Results Trump suggests companies report every six months instead of quarterly. Argument: reduces costs and red tape. Counterpoint: US market's strength lies in transparency & discipline from frequent reporting. Unlikely to change, but sparks debate on market "exceptionalism" 🇺🇸. 🏢 Three Stocks With More Cash & Investments Than Market Cap 1. 📰 Caxton (JSE:CAT) 💰 Cash: R3bn + R1.3bn stake in Mpact. Market cap: R4.4bn → stock "almost free" if stripped for parts. Dividend payer, PE \~7, yield \~5%. Not flashy, but offers Buffett-style margin of safety. 2. 🚚 Supergroup (JSE:SPG) 💰 Cash: R5.2bn, but liabilities of R9.5bn linked to assets held for sale. Supply chain, dealerships, fleet solutions. Debt-heavy, UK exposure risky 🇬🇧. Verdict: less attractive vs. Caxton. 3. 🛒 Pick n Pay (JSE:PIK) Owns 65.6% of Boxer → worth \~R20bn. Plus R5bn cash, R1bn debt, R2.8bn deferred tax asset. Market cap \~R20bn → potential undervaluation. PE ugly now, but 2027/28 earnings growth could re-rate it. Selling down Boxer stake could unlock value. ⚒️ Mining & M&A Anglo American buying Teck Resources (Canada, copper focus). * Increases copper weighting to \~⅔ of revenue. Head office shifting to Toronto 🇨🇦. Deal raises takeover questions – could BHP* come back for Anglo? 🇨🇳 Nvidia vs. China China says Nvidia violated anti-monopoly laws (linked to 2020 acquisition). Also probing Texas Instruments for "dumping". Comes as US-China trade talks continue, TikTok deadline looms ⏳. Possible bargaining chip in ongoing negotiations. Simon still holds Nvidia. 🧠 Next Week: Second Brain Special Simon explains how to build & use a "second brain" for decision-making & information management. Because our brains are great at decisions 🧠✔️ … but terrible at remembering ❌. 👉 Powered by Standard Bank Global Markets & SHYFT – The global money app for forex, travel, shopping, payments & investments. Simon Brown * I hold ungeared positions. All charts by KoyFin | Get 10% off your order
What this episode covers
🌍 World Wide Markets Ep. 648 – Cash-Rich Companies, Fed Cuts & China's Housing Woes Host: Simon Brown Date: 17 September 2025 📉 China's Housing Market New house prices fell 2.5% YoY – still negative since May 2022. Bottomed in October 2023 (-5.9%) and now trending upward. Reflects weak Chinese consumer confidence, similar to South Africa 🇨🇳🇿🇦. Evergrande's collapse still casts a shadow. Chinese New Home index YonY 🏦 Central Banks in Focus FOMC (US): Decision due Wednesday evening. Market expects 25bps cut, with more cuts likely in Oct & Dec. US unemployment says "cut", inflation says "don't cut" – a real policy squeeze. Trump pushing for FOMC shake-up & questioning quarterly reporting 📊. MPC (SA): Decision Thursday. Inflation at 3.5%, close to target. Mixed economist views: some say no cuts until 2027, others see cuts sooner. Fed cuts could influence SARB moves via rand 💵➡️🇿🇦. 📊 Trump vs. Quarterly Results Trump suggests companies report every six months instead of quarterly. Argument: reduces costs and red tape. Counterpoint: US market's strength lies in transparency & discipline from frequent reporting. Unlikely to change, but sparks debate on market "exceptionalism" 🇺🇸. 🏢 Three Stocks With More Cash & Investments Than Market Cap 1. 📰 Caxton (JSE:CAT) 💰 Cash: R3bn + R1.3bn stake in Mpact. Market cap: R4.4bn → stock "almost free" if stripped for parts. Dividend payer, PE \~7, yield \~5%. Not flashy, but offers Buffett-style margin of safety. 2. 🚚 Supergroup (JSE:SPG) 💰 Cash: R5.2bn, but liabilities of R9.5bn linked to assets held for sale. Supply chain, dealerships, fleet solutions. Debt-heavy, UK exposure risky 🇬🇧. Verdict: less attractive vs. Caxton. 3. 🛒 Pick n Pay (JSE:PIK) Owns 65.6% of Boxer → worth \~R20bn. Plus R5bn cash, R1bn debt, R2.8bn deferred tax asset. Market cap \~R20bn → potential undervaluation. PE ugly now, but 2027/28 earnings growth could re-rate it. Selling down Boxer stake could unlock value. ⚒️ Mining & M&A Anglo American buying Teck Resources (Canada, copper focus). * Increases copper weighting to \~⅔ of revenue. Head office shifting to Toronto 🇨🇦. Deal raises takeover questions – could BHP* come back for Anglo? 🇨🇳 Nvidia vs. China China says Nvidia violated anti-monopoly laws (linked to 2020 acquisition). Also probing Texas Instruments for "dumping". Comes as US-China trade talks continue, TikTok deadline looms ⏳. Possible bargaining chip in ongoing negotiations. Simon still holds Nvidia. 🧠 Next Week: Second Brain Special Simon explains how to build & use a "second brain" for decision-making & information management. Because our brains are great at decisions 🧠✔️ … but terrible at remembering ❌. 👉 Powered by Standard Bank Global Markets & SHYFT – The global money app for forex, travel, shopping, payments & investments. Simon Brown * I hold ungeared positions. All charts by KoyFin | Get 10% off your order
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Three Stocks with Cash & Shares Worth more then their Market Cap
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