Standard Bank's Asset Manager Eyes East Africa Growth
Standard Bank Group Ltd. intends to scale up its fund management units in Kenya and Uganda, started in the past two years, to become 'real competitors,' said Derrick Msibi, head of asset management at the lender and chief executive officer of Stanlib Asset Management Pty Ltd.
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Yahoo
40 minutes ago
- Yahoo
Cava Shares Crash. Should Investors Buy the Stock on the Dip or Run for the Hills?
Key Points Cava shares sank after its same-store sales growth slowed. The company still has a long expansion runway, and therefore, plenty of growth potential for the stock. 10 stocks we like better than Cava Group › Shares of Cava Group (NYSE: CAVA) plunged after the Mediterranean-themed restaurant operator's same-store sales growth slowed in its fiscal second quarter (ended July 13), missing expectations. The stock is now down nearly 40% year to date as of this writing. Let's dive into the company's latest results and prospects to see if investors should buy the dip or steer clear of the stock. Same-store sales growth slows After reporting double-digit growth in comparable-restaurant sales (comps) each of the past four quarters, Cava's growth slowed considerably in its fiscal Q2. Comps edged up just 2.1% with guest traffic largely flat. That was well below the 6.1% increase that analysts were expecting, based on market intelligence site StreetAccount's estimates, and a big slowdown from recent quarters. Metric Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2005 Comps growth 14.4% 18.1% 21.2% 10.8% 2.1% Traffic 9.5% 12.9% 15.6% 7.5% -- Price and product mix 4.9% 5.2% 5.6% 3.3% 2.1% Data source: Cava Group. The company started the quarter strong, but once it lapped the introduction of its popular grilled steak a year ago, growth slowed. In response, Cava plans to push forward with more menu innovations, including the introduction of chicken shawarma in the coming weeks and cinnamon sugar pita chips. It said tests of chicken shawarma in select markets went well, and it expects the new item to help drive comps. Overall revenue for the quarter climbed 20% year over year to $278.2 million. It opened 16 new restaurants in the period, bringing its total to 398 locations, a nearly 17% increase compared to a year ago. It entered two new markets during the quarter, in Pittsburgh and Michigan. Management now plans to open between 68 to 70 new locations this fiscal year, up from a prior forecast of 64 to 68. Long term, management's goal is to reach at least 1,000 stores by 2032. Its restaurant-level margins (RLMs) came in at 26.3% in the quarter, down slightly from 26.5% a year ago. RLMs measure how profitable a chain's individual restaurants are before corporate costs, and they're an important restaurant industry metric. The company's RLMs just trail the 27.4% figure of Chipotle Mexican Grill despite having much lower scale than its larger rival. On the profitability front, Cava's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 23% year over year to $42.1 million. The company also generated $98.9 million in operating cash flow in the quarter and free cash flow of $21.9 million. Management lowered its full-year comps outlook for the year, taking it from 6% to 8% growth down to a range of 4% to 6% growth. But it maintained its 2025 adjusted EBITDA outlook of $152 million to $159 million, and its RLM margin forecast of 24.8% to 25.2%. Should investors buy the dip? In hindsight, with the restaurant industry's comps growth slowing in general, combined with the lapping of the introduction of Cava's highly popular grilled steak, it may not be that big of a surprise to see the chain's comps growth slow dramatically. That said, it doesn't take away from the fact that Cava is still a highly popular concept. The company's biggest opportunity is still its ongoing expansion. With fewer than 400 locations, it has a long growth runway that it is able to self-fund. These are also highly productive stores with an impressive average unit volume of nearly $3 million and top-tier RLMs. Trading at a forward price-to-earnings ratio (P/E) of nearly 123 and a forward price-to-sales ratio (P/S) of 7 based on 2025 analyst estimates, Cava stock is not cheap. However, if the company gets to 1,000 store locations in 2032, it could be generating close to $4.5 billion in revenue with consistent mid-single-digit comps growth. With Chipotle currently sporting a forward P/S ratio of 4.8, Cava stock has the potential to more than double over the next seven years if it were to trade at the same multiple that Chipotle does today. That's a strong outlook, and the restaurant chain could still expand beyond that point. As such, the stock's year-to-date slump does present an interesting opportunity. Long-term investors can consider taking a starter position in Cava now and add more shares on future dips. Should you invest $1,000 in Cava Group right now? Before you buy stock in Cava Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Cava Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Cava Group and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Cava Shares Crash. Should Investors Buy the Stock on the Dip or Run for the Hills? was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
40 minutes ago
- Yahoo
History Shows That Palantir Stock's Monster Run Is Speeding Toward an Epic Crash -- and It All Might Come Down to 1 Detail That No One Is Talking About
Key Points Palantir stock is surging thanks to the company's ability to consistently deliver record-breaking growth from its artificial intelligence (AI) products. While it's tempting to follow momentum, Palantir is trading at valuations that eclipse even those seen during prior stock market bubbles. Institutional investors appear to be reining in their buying activity. 10 stocks we like better than Palantir Technologies › As of the closing bell on Aug. 12, shares of data mining darling Palantir Technologies (NASDAQ: PLTR) have skyrocketed by 147% year to date -- making it the top-performing stock in the S&P 500 for two years running. The obvious talking point here is that Palantir has been on a monster run throughout the course of the artificial intelligence (AI) revolution. Skeptics point to Palantir's lofty valuation as the cornerstone of the bear argument, as the stock trades at levels encroaching on dot-com-era bubble territory. While that's true, such concerns haven't stopped the stock from repeatedly notching new highs. I think there is a far subtler detail surrounding Palantir stock that rarely gets discussed. If history is any guide, it could set the stage for an epic reversal. Is now the time to sell Palantir stock? Read on to find out. Valuation that redefines what it means to be "expensive" During the late 1990s, internet companies were often measured by non-financial metrics based on user engagement. Businesses such as Amazon, Cisco, Microsoft, Alphabet, and Yahoo! were valued based on eyeballs and clicks rather than sales and profits. At the peak of dot-com euphoria, many of these internet pioneers traded at price-to-sales (P/S) multiples between 30 and 40 -- considered unsustainably high at the time. Palantir has completely redefined how next-generation technology businesses are valued, though. As of Aug. 12, Palantir boasts a market cap of nearly $444 billion -- larger than Salesforce, SAP, and Adobe, which are far more mature, diversified businesses. Perhaps even more striking is that Palantir's P/S of 137 exists in its own stratosphere -- completely outside the dimensions of its software-as-a-service (SaaS) peers. Some argue that traditional valuation methodologies such as P/S or earnings multiples don't fully capture Palantir's true value or its full potential. Instead, they urge investors to focus on industry-specific and financially engineered metrics such as the Rule of 40 to see just how "cheap" Palantir stock really is. I think this argument is flawed. There's a more telling metric -- and one that almost nobody talks about -- that makes me think Palantir stock could be on a collision course with history. Is "smart money" trying to tell us something? The chart below tracks buying activity in Palantir stock across institutional investors since its initial public offering (IPO) in late 2020. Initially, there was a wave of "smart money" buying during early 2021, which was met with substantial selling during the latter half of that year. Palantir's institutional ownership picked up again following the company's splash into the AI realm a couple of years ago. It's this dynamic where I think the retail investing crowd is missing the bigger picture and buying into a mirage. As the chart above illustrates, there is a convergence happening between the institutional buying and selling in Palantir stock. When net demand tightens -- meaning that buying is no longer materially higher than selling -- it takes less downside pressure to inspire a precipitous drop in share price. I see the dynamics illustrated in the chart above as an inflection point for Palantir stock. In addition, banks, wealth management firms, mutual funds, and hedge funds all have different priorities. Many of these institutions are required to hold large-cap stocks for benchmarking purposes, not because they think the stock is undervalued or because they carry some "diamond hands" conviction that shares are going higher despite abnormal volatility in the present. When a stock becomes an abnormally high weight relative to the overall portfolio, institutional investors often trim their exposure. This is known as portfolio rebalancing. This scenario can be perfectly explained in the video clip above in which mutual fund billionaire Ron Baron describes his fiduciary responsibility to take profits from time to time in even his highest-conviction positions, such as Tesla. If a stock becomes overinflated, institutions will use this market liquidity as a mechanism to sell their shares to retail at a premium. This dynamic is more colloquially referred to leaving retail "holding the bag" when the hype narrative fades. While I can't say for certain where Palantir stock is headed, my thought is that fund investors are going to pressure portfolio managers to trim exposure to Palantir and take some money off the table, much like what Baron experienced. I think the pressure will be rooted in the anticipation of a valuation reset for Palantir given its frothy positioning relative to peers. Will history repeat itself? Although history is not always a perfect predictor, I think it's a strong barometer in this case. While it's virtually impossible to pick the perfect time to sell a stock, I think there are some compelling -- and overlooked -- details that suggest Palantir stock could be headed lower from current price points sooner than many bulls expect. Should you buy stock in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Adam Spatacco has positions in Alphabet, Amazon, Microsoft, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Adobe, Alphabet, Amazon, Cisco Systems, Cloudflare, CrowdStrike, Datadog, Microsoft, MongoDB, Palantir Technologies, Salesforce, ServiceNow, Snowflake, Tesla, and Zscaler. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. History Shows That Palantir Stock's Monster Run Is Speeding Toward an Epic Crash -- and It All Might Come Down to 1 Detail That No One Is Talking About was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News24
3 hours ago
- News24
Africa's nuclear capacity could expand tenfold by 2050 — report
For now, South Africa remains the only African country generating nuclear power. But Africa's nuclear sector is poised for significant growth, with a new International Atomic Energy Agency report projecting generating capacity could increase tenfold by 2050. Despite having just one operational nuclear plant today, a new report projects that Africa's generating capacity could increase tenfold by 2050. The report, Outlook for Nuclear Energy in Africa by the International Atomic Energy Agency (IAEA), was launched at the G20 Energy Transitions meeting in South Africa held between July 30 to August 1, 2025, at the Sun City resort in the North West. The report examines how nuclear power could help address the continent's electricity shortages, diversify its energy mix away from fossil fuels, and drive industrial growth. According to MaryAnne Osike from the Nuclear Power and Energy Agency (NuPEA), 'Nuclear is not here to replace wind, solar, or hydro, it's here to strengthen them.' 'Its ability to provide constant, reliable baseload power means renewables can operate more effectively without being limited by weather or seasonal variations,' she shared in a call. 'When integrated into a diversified energy mix, nuclear offers long-term price stability, strengthens grid resilience, and reduces dependence on imported fuels. It's part of the same clean energy toolbox that Africa needs to achieve both climate goals and industrial growth,' she added. The IAEA outlook report also highlights the role of emerging technologies such as small modular reactors, outlines national programmes already underway, and stresses the need for supportive policies, regional cooperation, and innovative financing. According to Rafael Mariano Grossi, IAEA director-general, 'Access to reliable and low-carbon energy sources such as nuclear can enable Africa to further explore and add value to its vast natural resources.' The shift comes as African governments face the dual challenge of powering economies where more than 500 million people still lack electricity and replacing fossil fuels, which currently provide more than 70% of the continent's power. In the IAEA's high-growth scenario, nuclear capacity in Africa could more than triple by 2030 and expand tenfold by 2050, requiring more than US$100 billion in investment. Even in the low-growth case, output would double by 2030 and increase fivefold by mid-century. For now, South Africa remains the only African country generating nuclear power. Its two-unit Koeberg nuclear power station supplies nearly two gigawatts to the grid, and in 2024, Unit 1 received a 20-year life extension. But several other countries are moving from planning to implementation. Egypt is building the 4.8-gigawatt El Dabaa Nuclear Power Plant, with its first unit expected online by 2028. Ghana, Rwanda, Kenya, Namibia and Nigeria have made firm decisions to adopt nuclear technology and are working with the IAEA to prepare infrastructure, establish regulatory bodies, and develop human capital. Kenya set up its Nuclear Energy Programme Implementing Organisation in 2012, has since established an independent regulator, and is targeting 2038 for its first reactor, with SMRs under review to match demand patterns. Ghana's Nuclear Power Ghana is in vendor talks for both a large nuclear plant and SMRs, while Nigeria has opened bids for a 4,000-megawatt facility and signed agreements with multiple suppliers. A large part of this momentum is driven by growing interest in small modular reactors (SMRs), which offer flexible power generation in smaller increments than traditional gigawatt-scale plants. 'Global interest in SMRs is increasing due to their ability to meet the need for flexible power generation for a wider range of users and applications,' according to Zizamele Mbambo, South Africa's deputy director-general for nuclear energy. SMRs are well suited to Africa's small or fragmented grids, require less upfront capital, and can be deployed more quickly. They also offer off-grid potential for industrial projects such as mining and desalination. The IAEA outlook notes that SMRs could even be integrated into existing coal power sites, reusing infrastructure while cutting emissions, a theme it plans to explore in a forthcoming coal-to-nuclear transition report for the G20. Africa already holds a significant advantage, being home to 14% of the world's uranium production. Namibia ranks as the world's third-largest producer, while Niger and South Africa are also in the top ten. In Namibia, the previously idled Langer Heinrich mine has been reopened, with production expected to resume in 2026, and new projects are due by 2028. Tanzania has confirmed large reserves, such as the US$1.2-billion Mkuju River plant in jointly with Russia, is on course for pilot production. This resource base could bolster both export earnings and domestic energy security if countries invest in fuel cycle capabilities to convert raw uranium into reactor-ready fuel. However, according to experts like Osike, the pace at which Africa's nuclear ambitions materialise will hinge on financing, given the sector's high upfront costs and decades-long project lifecycles. 'Nuclear projects demand substantial upfront investment and a commitment that spans decades… Without innovative financing models and strong partnerships, many African countries will struggle to move from ambition to reality.' In June 2025, the IAEA and the World Bank signed an agreement, the Bank's first formal engagement with nuclear energy in decades. This opens the door for World Bank support in extending reactor lifespans, upgrading grids, and accelerating SMR deployment, while signalling to other multilateral lenders, including the African Development Bank, that nuclear is part of the clean energy transition toolkit. Vendor financing is also in play. Egypt's El Dabaa project, for example, is backed by large concessional loans from Russia with low interest rates and extended repayment terms. However, many African nations face low credit ratings and high debt-to-GDP ratios, so new financing models, from regional SMR purchase agreements to blended public-private investment, will be key. 'Developing a nuclear programme requires a century-long commitment, from construction through decommissioning and waste management,' Osike shared. 'Stable national policy, public support, and regulatory readiness are therefore essential,' she added. The IAEA's Milestones Approach identifies 19 infrastructure issues that must be addressed before construction begins. Continental and regional integration could further accelerate nuclear rollout. The Africa Single Electricity Market, launched by the African Union, aims to link national grids into the world's largest single electricity market. This could allow countries to share nuclear output, stabilise grids, and make large-scale investments viable. Shared infrastructure, training, and regulatory capacity could mirror the cooperative models already used in hydropower projects. *
