Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

BFS strategically placed?

Reply
gareth01
Regular Contributor
BFS like most stocks have been "unfairly" hammered down from the highs of R7, yes P.E is a bit high around 11 and yes it is a small cap (with low volumes) - but in my opinion still a very sound value share in the medium/longer term. Fundamentally, the business is well run (excl. the SSF error that handed ABSA 16% ownership, and now recently up to 21%) - but overall the growth strategy into 14 various african countries, with over 300 branches and the recent purchase of Credit U (in S.A), has really given the business a great "volume of opportunities" to execute on. the financials for the 2009 period under review were "excellent" - and would have been better if it was not including the the R50m currency fluctuation (now hedged going forward). Futhermore, the book has grown tremendously. Yes, the clients serviced are on the lower end of the income scale, which we all know are under pressure....but company provisions for impairments are only about 9% (which is not to bad, considering them in relation to some of our larger 4 banks). Technically, the RSI is not confirming the current downside, and stochastic is showing oversold position, so this signalling to my limited tech knowledge as a good entry. - personally I have purchasing much as I can for the longer term (as I believe this to great share for the future and a good divident payer (eventually) - perhaps a future ABIL, with greater outside SA growth?
0 Kudos
1 REPLY 1
Not applicable
Gareth, do you work for Blue?
0 Kudos