Bulls n Bears Investors Notebook Issue 434: 08 February 2020

Sat Feb 8 03:13:04 CAT 2020

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Bulls n Bears Investors Notebook Issue 434: 08 February 2020

 <http://www.nicozdiamond.co.zw/> 

Bulls 'n Bears Investors Diary: Today's Events

Quotable Quote:

Relations are all about: Winning, Losing & Sharing.
Winning Trust, Losing ego

US dollar pay for tobacco farmers

The Reserve Bank of Zimbabwe (RBZ) says it has started working on refining
last year's shambolic tobacco payment modalities to ensure farmers receive
50 percent of their tobacco sales as hard currency. After getting half the
money for tobacco crop in US dollars, farmers will then receive the balance
in local currency. This comes after most tobacco growers last year got paid
the interbank equivalent of their US dollar dues. Farmer associations said
members failed to access their US dollar portion, although the policy
existed, because of the complex and long processes that were involved before
a farmer could eventually get the US dollars. The long process started with
an application placed with the merchant, who would send it to TIMB, which
would forward the request to the Reserve
<http://techsavvy.co.zw/2020/02/08/us-dollar-pay-for-tobacco-farmers/> Read
more >

'2020 will be bumpy ride for business once again'

THE business environment in Zimbabwe will continue to squeeze overburdened
firms and market players this year largely due to acute shortage of foreign
currency and depreciation of the Zimbabwe dollar, analysts say. Finance and
Economic Development Minister Mthuli Ncube sees the economy rebound by 3
percent in 2020, after a 6,5 percent projected decline last year, on the
back of improved power supply, good rains and a cocktail of incentives to
boost production. However, economic analysts expect the prevailing
challenges that haunted the economy for most of 2019 to persist, especially
persistent foreign currency shortages and a continually weakening domestic
currency. Analysts IH Securities, said the chief catalyst of Zimbabwe's
stagflation trap is burgeoning broad money supply, w
<http://techsavvy.co.zw/2020/02/08/2020-will-be-bumpy-ride-for-business-once
-again/> Read more >

For more business & financial updates log onto <http://www.bulls.co.zw/>
www.bulls.co.zw

Delta, a stock to watch in 2020

Lager beer volumes declined 43 percent for the quarter and 46 percent for
the nine months compared to the same period in the prior year. Although the
economy is experiencing headwinds that have reduced disposable incomes
affecting the beverages sector, analysts remain positive on beverages
manufacturer, Delta Corporation as one of the stocks to watch in 2020. The
beverages sector has not been spared from the troubles bedevilling the
economy and anticipated to continue posing challenges in the short-to-medium
term. Foreign currency shortages will keep the two listed beverages firms,
Delta and Afdis in a fix. Non-listed Schweppes cannot be excluded from the
grouping, together with dairy processor, Dairibord as their survival
strongly depends on consumer disposable incomes. Last...
<http://techsavvy.co.zw/2020/02/08/delta-a-stock-to-watch-in-2020/> Read
more >

Marange diamonds mining lacked accountability

Diamonds production figures and revenues reportedly earned from gems
exploited in Marange - Manicaland, might have been grossly exaggerated as it
emerged there was no accountability and transparency in the handling of the
precious mineral while record keeping was shambolic, Business Weekly can
reveal. During the height of alluvial rough diamond mining in Marange,
authorities in the old dispensation are on record that Zimbabwe was
producing over 25 percent of the world diamond production, while former and
late President Mugabe revealed the country could have lost over US$15
billion through some shade deals. However, despite reports that Zimbabwe
could have produced such quantum of diamonds in this close to US$100 billion
industry, it still has nothing to show as it is dogged by acute
<http://techsavvy.co.zw/2020/02/08/marange-diamonds-mining-lacked-accountabi
lity/> Read more >

Zim trade deficit hits record low

Zimbabwe recorded its narrowest trade deficit in nine years as shortage of
foreign currency as well as import controls reduced the country's import
bill to U$4,8 billion in 2019 from US$6,9 billion in 2018. Exports declined
last year for the first time since 2015, dropping 2,2 percent, according to
figures released this week by Zimstats. But imports fell more sharply,
decreasing 30,4 percent. That combination shrank the overall trade deficit
by 80 percent, to $548,2 million. The Zimbabwe economy has run trade
deficits for years and months but the last 3 months of 2019 saw net exports
being recorded helping in narrowing the overall trade outturn to its lowest
deficit in nine years. The trade outturn comes at a time the country has
been struggling to contain its import bill that h
<http://techsavvy.co.zw/2020/02/08/zim-trade-deficit-hits-record-low/> Read
more >

 <http://www.nedbank.co.zw/> 

Portnex operations under threat

Operational challenges at Kwekwe-based ferrochrome producer, Portnex Private
Limited, are threatening the future of the company with the firm yet to
begin production since the beginning of the year. The firm, which produces
ferrochrome using the Zimasco Western Plant on a five-year lease agreement,
has since failed to start production since the beginning of the year owing
to a number of challenges, chief among them prolonged load - shedding at the
plant. Unconfirmed reports also have it that the company is believed to be
swimming in debt, a situation that has resulted in the power utility, ZESA
switching off the plant. As a result, the company has since reportedly
retrenched some employees as a cost cutting measure. Since breaking for the
festive holidays in December 2019, th
<http://techsavvy.co.zw/2020/02/08/portnex-operations-under-threat/> Read
more >

Miners seek higher forex retention

The Zimbabwe Miners Federation (ZMF) is pressing Government for an upward
increase of gold foreign currency retention threshold to above 75 percent as
part of efforts to incentivise gold producers and encourage to deliver to
the national gold buying entity, Fidelity Printers and Refiners. Currently,
producers are entitled to a retention threshold of 55 percent of the gold
receipts, which miners argue is still low given the obtaining economic
challenges that have driven cost of mining through the roof. The sector is
capital intensive, requiring foreign currency for procurement of machinery
at a time the country's foreign currency coffers are low. Gold is the
country's top single foreign currency earner ahead of tobacco, and it
anchors the country's economic turnaround strategy th
<http://techsavvy.co.zw/2020/02/08/miners-seek-higher-forex-retention/> Read
more >

 <mailto:info at bulls.co.zw> 

Sugar bean a profitable crop

This season has experienced erratic rainfall patterns in most parts of the
country, leading to germination failure and poor performance by many crops.
Thus we are running again a column giving farmers advice on how to grow
sugar bean, a crop that has potential to perform within a short space of
time. Climate change vagaries have prompted the need for farmers to adopt
climate smart crops that help mitigate against the effects of climate
change. The false start to the season, recurrence of mid-season droughts,
heat waves, floods and the premature termination of the rainfall season over
the years has seen the need for farmers to diversify cropping programmes in
a bid to spread risk and increase chances of increased productivity in their
cropping plans. Diversification promotes farm...
<http://techsavvy.co.zw/2020/02/08/sugar-bean-a-profitable-crop/> Read more
>

Does Zimplats need a rethink on palladium?

Last month palladium hit an all-time record price of US$2556,95 per ounce,
higher than the platinum price at below US$1000 an ounce, and gold at just
over US$1500 an ounce. The irony of it is that palladium was long considered
as only one of the Platinum Group Metals (PGMs). The metal's skyrocketing
prices have raised questions over substituting it for platinum. Palladium
has various uses, including in ceramic capacitators found in mobile phones
and laptops, dental fillings as well as white gold jewellery. But 80 percent
of palladium produced is used in the manufacture of catalytic converters for
petrol cars, which perhaps points to its growing demand. Zimbabwe Platinum
Holdings (Zimplats)'s fourth quarter production numbers - albeit in the red
- show that palladium production
<http://techsavvy.co.zw/2020/02/08/does-zimplats-need-a-rethink-on-palladium
/> Read more >

3 NetOne Board Members Including The Chairman Resign

The NetOne board Chairman and 2 other board members tended in their
resignations yesterday, Technomag exclusively reported The development was
reportedly confirmed by the ICT postal and courier services minister Jenfan
Muswere who reportedly said it was the government's initiative to bring
sanity to the sector. Technomag reports that an audit conducted at the MNO
had strong implications against the board and another annual report pointed
out their weaknesses hence their decision to quit..
<http://techsavvy.co.zw/2020/02/08/3-netone-board-members-including-the-chai
rman-resign/> Read more > 

'Bulawayo companies to blame for tender losses'   

BULAWAYO City Council has said some companies based in the city fail to meet
tender requirements but end up crying foul after losing to outsiders. Local
businesses have in the past complained that the local authority was
sidelining them in the awarding of tenders. However, council officials have
blamed local companies for failing to do proper paperwork resulting in them
losing to outsiders.  <http://techsavvy.co.zw/> Read more >

Information Minister Commissions HD Studio For Independent Producers

Information and Broadcasting Services, Senator Monica Mutsvangwa has
commissioned a studio at the ZBC Pockets Hill for independent producers. ZBC
News reports that Mutsvangwa was full of praise for the state-run
broadcaster for ensuring that its competitors have access to facilities that
will enable them to play a diverse and critical role in the broadcasting
industry. The publication further reports that the studio has modern
technology such as lighting systems that allow up to two production sets
with four cameras, good editing suites, good acoustics and multiple video
recorders which can be configured to operate in ultra-high definition.
<http://techsavvy.co.zw/> Read more >

Traditional Food And Beverages Expo 2020 Around The Corner

Amagugu Heritage has reminded that the Traditional Food and Beverages Expo
2020 is fast approaching and those who would want to partake in the event
have to buy tickets in time. Amagugu Heritage held the inaugural Traditional
and Beverages Expo in 2016 "in a bid to raise citizen awareness on the
inherent nutritional value of traditional food and beverages" and this
year's expo is the fourth edition.  <http://techsavvy.co.zw/> Read more >

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

REST OF AFRICA

Counters Trading Under Cautionary

 Bindura Nickel Corp

CBZH

Dawn

Delta

Falgold

Fidelity

MedTech

Meikles

Turnall

Unifreight

Post your event (AGM, EGM, Analysts Briefing, etc) on the Investor Diary
free of charge and reach out to the market. We have annual gold prices since
1900, monthly since January 1971 and daily prices since January 2000. We
also provide historical ZSE prices on request.

DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls 'n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

Invest Wisely!

Bulls n Bears 

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