David Shapiro on US giants Moderna and Peloton's fall from grace
As is customary for a Monday, Sasfin Securities David Shapiro gives us his insight on the latest developments taking place across local and international markets. The conversation starts by focusing on the price action in New York, where Moderna and Peloton have nosedived, as the world returns to normality. Shapiro notes the tailwinds that both companies had as a result of the pandemic and demand is unlikely to be sustainable as Covid-19 eases. Harry Smit, the representative of the Ascendis Activist Investors, was recently added to the board as a non-executive director. A big win for activism in South Africa and hopefully, the precedent has been set. Speculation surrounding MTN’s rumoured buyout of Telkom was also discussed, with Shapiro outlining it is unlikely the Competition Commission would allow this on anti-competitive grounds. The infrastructure drive implemented by the government seems to be well underway; construction group Raubex has posted good numbers. Lastly, small-cap retail investor favourites Renergen and the Purple Group are discussed.