Not a particularly specific blog posting but something I thought I would throw out into the ether.
I had an interesting interview with Jon Maguire the Chief Investment Officer of a UK fund management company called Cru. Scanning some of the news sites, I see that Maguire and Cru have raised a few hackles in SA and the UK.
Whether people like them or their investment methodology is not of any particular consequence to me. However I did want to touch on one of the comments he made.
One of the sectors they believe provide some great opportunities are the African agricultural sectors. "Farming" will never hold the appeal of high finance or technology, but the reality is there will always be mouths to feed, there is a global shortage of food (i.e. plenty of demand for the product) and with banking on the back foot agriculture is one of the areas where they are seeing some opportunities.
They've invested in places like Malawi, where farming is a relatively low cost investment.
With the global economy facing a massive downturn, food remains a highly defensive industry in which to be in - as they say when things go pear shaped there are always two sectors you can rely on - Food and Beer!
Would be interesting to hear from other entrepreneurs and investors about issues for or against the South African / African agriculture sector as a viable industry to consider.
Sunday, November 23, 2008
Buildmax
This isn't really a "Venture Capital" type post, but more in the line of private equity transactions that ordinary SA investors may be interested.
Two of the top SA private equity players - Brait and Peregrine have stakes in JSE listed Buildmax.
The profile of Buildmax according to Sharenet is:
Buildmax has recently been repositioned as one of Africa?s leading empowered opencast mining contractors and the largest in South Africa in the niche of coal mining. The company further provides bulk earthworks and construction materials to the mining and construction industries. Specifically the Equipment - Services business unit is involved in opencast mining projects from greenfields stripping to mine closure and rehabilitation and offers bulk earthworks for civil engineering projects. The Construction Materials business unit houses sand quarry operations, aggregate distributors and cement brick and block manufacturers.
The Brait guys have been extremely bullish on the prospects for Buildmax based on their coal exposure and have recently taken a nice stake in the business. The theory is to follow the "Energy" type businesses as they try to meet SA's constantly growing need.
Buildmax is listed on the JSE and currently trades at around 95c a share. The company trades on an historical price to earnings (PE) ration of 4 times earnings.
If it is good enough for the top private equity guys it might be good enough for the ordinary investment plebs like me!
Two of the top SA private equity players - Brait and Peregrine have stakes in JSE listed Buildmax.
The profile of Buildmax according to Sharenet is:
Buildmax has recently been repositioned as one of Africa?s leading empowered opencast mining contractors and the largest in South Africa in the niche of coal mining. The company further provides bulk earthworks and construction materials to the mining and construction industries. Specifically the Equipment - Services business unit is involved in opencast mining projects from greenfields stripping to mine closure and rehabilitation and offers bulk earthworks for civil engineering projects. The Construction Materials business unit houses sand quarry operations, aggregate distributors and cement brick and block manufacturers.
The Brait guys have been extremely bullish on the prospects for Buildmax based on their coal exposure and have recently taken a nice stake in the business. The theory is to follow the "Energy" type businesses as they try to meet SA's constantly growing need.
Buildmax is listed on the JSE and currently trades at around 95c a share. The company trades on an historical price to earnings (PE) ration of 4 times earnings.
If it is good enough for the top private equity guys it might be good enough for the ordinary investment plebs like me!
Wednesday, November 12, 2008
Can you help?
I know that in South Africa, we tend to become somewhat immune to stories of violence committed against young kids.
However I'm making a call to mobilise any resources I can to assist. I received a message from a guy who runs a children's home in JHB. Over the last four years he has seen plenty of bad things and has regularly had to hit people up for cash.
I received the following SMS from him this evening and when he says things are bad - he means things are bad.
"Dear friends, we have a little girl named Kim (aged 6) who was badly raped - the worst we have ever seen. The cost of the reconstructive surgery is R100 000. My company is able to contribute R50000 and we are seeking sponsors for the difference"
I completely appreciate that things are tight at the moment but I have committed to assisting in the fundraising efforts.
If you are able to assist in any way please drop me a mail at marc@rival.co.za or contact me on 082-561-1585 to discuss further.
Kind regards,
Marc Ashton
www.ManufacturingHub.co.za
However I'm making a call to mobilise any resources I can to assist. I received a message from a guy who runs a children's home in JHB. Over the last four years he has seen plenty of bad things and has regularly had to hit people up for cash.
I received the following SMS from him this evening and when he says things are bad - he means things are bad.
"Dear friends, we have a little girl named Kim (aged 6) who was badly raped - the worst we have ever seen. The cost of the reconstructive surgery is R100 000. My company is able to contribute R50000 and we are seeking sponsors for the difference"
I completely appreciate that things are tight at the moment but I have committed to assisting in the fundraising efforts.
If you are able to assist in any way please drop me a mail at marc@rival.co.za or contact me on 082-561-1585 to discuss further.
Kind regards,
Marc Ashton
www.ManufacturingHub.co.za
Wednesday, November 5, 2008
Innovation Fund Invites South Africans to Submit Proposals for Investment in their novel inventions
The Innovation Fund is inviting investment proposals from all South Africans with novel and inventive technological ideas that are commercially viable.
The Innovation Fund, which is an initiative of the Department of Science and Technology mandated to promote technological innovation through investment in development and commercialisation of novel and inventive South African technologies, is inviting investment proposals from all South Africans with novel and inventive technological ideas that are commercially viable.
In announcing this invite the Innovation Fund’s Senior Commercialisation Manager Duncan Raftesath said, “this invite is based on the Innovation Fund’s firm belief in the inventiveness of South Africans, their ability to invent technologies and apply them in solving real life problems. Through this invite we are calling on South African scientists, engineers and inventors to come up with truly novel and inventive technologies that have a commercial case and we will help them finalise their R&D, protect their intellectual property and commercialise their inventions.”
Investments will be made available through the Innovation Fund’s investment programmes which are the Technology Advancement Programme (TAP), Seed Fund and the Patent Support Funds. Projects that need investments to finalise their Research and Development will receive investment through the Technology Advancement Programme which invests in late stage (i.e. where proof of science already exists) research and development of novel and inventive technologies. TAP investments are up to R15 million per project over five (5) years. Projects that have already developed novel and inventive technologies but need investment to take their technologies to the market will receive investment through the Seed Fund, which invests in early commercialisation/ start up activities aimed at taking technological innovations to the market. Total value of Seed Fund investments will be on case by case bases. The last programme that seeks investment proposals is the Patent Support Fund which is comprised of instruments targeted at SMMEs and Techno-entrepreneurs. The Patent Support Fund’s instruments are meant to assist with the costs associated with the protection of intellectual property through the patenting system. Each successful SMME will receive an investment of up to R750 000.
All interested individuals, SMMEs and research institutions must submit their proposals by the end of this financial year, 31 March 2009. Another open call will commence from 1 April 2009. Further information and application forms are available on the Innovation Fund’s website www.innovationfund.ac.za.
The Innovation Fund, which is an initiative of the Department of Science and Technology mandated to promote technological innovation through investment in development and commercialisation of novel and inventive South African technologies, is inviting investment proposals from all South Africans with novel and inventive technological ideas that are commercially viable.
In announcing this invite the Innovation Fund’s Senior Commercialisation Manager Duncan Raftesath said, “this invite is based on the Innovation Fund’s firm belief in the inventiveness of South Africans, their ability to invent technologies and apply them in solving real life problems. Through this invite we are calling on South African scientists, engineers and inventors to come up with truly novel and inventive technologies that have a commercial case and we will help them finalise their R&D, protect their intellectual property and commercialise their inventions.”
Investments will be made available through the Innovation Fund’s investment programmes which are the Technology Advancement Programme (TAP), Seed Fund and the Patent Support Funds. Projects that need investments to finalise their Research and Development will receive investment through the Technology Advancement Programme which invests in late stage (i.e. where proof of science already exists) research and development of novel and inventive technologies. TAP investments are up to R15 million per project over five (5) years. Projects that have already developed novel and inventive technologies but need investment to take their technologies to the market will receive investment through the Seed Fund, which invests in early commercialisation/ start up activities aimed at taking technological innovations to the market. Total value of Seed Fund investments will be on case by case bases. The last programme that seeks investment proposals is the Patent Support Fund which is comprised of instruments targeted at SMMEs and Techno-entrepreneurs. The Patent Support Fund’s instruments are meant to assist with the costs associated with the protection of intellectual property through the patenting system. Each successful SMME will receive an investment of up to R750 000.
All interested individuals, SMMEs and research institutions must submit their proposals by the end of this financial year, 31 March 2009. Another open call will commence from 1 April 2009. Further information and application forms are available on the Innovation Fund’s website www.innovationfund.ac.za.
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