Their trading update says they expect a headline loss but cant quantify it. I thing the loss is going to be so big the share price would crash if they announced it. I say wait until the numbers are announced.
Hello- I own a big chunk of BFS bought down to 104 per share. My thinking is with ABSA owning 22% of the company plus another 120m loan plus them having to take over Dave Van Niekerk's shares, they can't afford to let it go down. There is a big demand for BFS's services and when the credit loosens up, the company should do well. I believe at 62 per share it's worth a calculated risk....what do you guys think?
The truth is ABSA also had a big hand in the microlender UNIFER a couple of years ago. The UNIFER shareholders also though that big daddy wouldn't let them down. 120 bar in ABSA's book is miniscule in the overall scheme of things and they will write that off without a bat of an eyelid. Don't bank(sic) on ABSA to rescue this puppy.
Hi Simon I am following your train of thought....but I own 275000 shares bought at 104. Now trading at 63. I was thinking of putting in a stop loss at 50 and hope the "IF" kicks in before the stop loss....what is your opinion?
same rely to the DRD crowd BFS (BROKE FOR SURE) is on a life line
Hmmm, from abrilliant article I reead on pricing shares "If you are buying a company you look at it for the long term - how it is positioned in the market, does it have a competitive advantage and what does the company do with its cash flow to enhance shareholder value?...........look at the power of the brand. A strong brand improves the durability of the company over the long term. Interestingly the last thing ..... looks at is management. He wants a company that is so strong and has such market dominance that even an idiot could not stuff it up. While there are a handful of outstanding CEOs who have led their company for many years, by in large executives come and go and it is the company that remains."
Reality a company must run when the CEO and entore board dies in a plane crash....so "good management" aside what does this mongrel offer us?...OMO
How senior is you friend? I had a look at their financials for Feb 2009 and it is remarkable at the amount of goodwill they have on their books. Close on R700m! If you compare the goodwill to the size of the loan books in each country it doesn't paint a good picture. If their operations cannot pay out loans due to lack of funding then surely this goodwill will need to be impaired? That will surely wipe out a huge chunk of their retained earnings?