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BFS strategically placed?

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?
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Gareth, do you work for Blue?
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