Household debt is growing. Rejection rate in unsecured debt is on the increase. Wait for the bubble to burst and then watch the impairment coming through. P/E ratio at 19% at current circumstance---->EISH
you guys talk like this price is heading in any other direction other than up.
Anyway on a more serious note from a trading point of view I see no reason for climbing in, but from an investment point of view Ive seen valuations for it at about R 65, personally I aint selling before it hits R 130, it might just not be tomorrow though :)
What have unsecured loans to do with CFR? Their businesses have nothing to do with people who need to borrow money. They spend it. This share is one of my bankers, still seriously undervalued. The present PE is nothing for this company. And yes R60 is not far away. IMO
Better question (if you are an investor) to ask is:" Is recent growth and this business model sustainable?" The answer to the first part of the question is that its more likely to surprise on the level of meeting analysts expectations than on the upside of those and the second question is answered by the level of diversification they seek out going forward. Their recent purchase of the watch case manufacturer is good integration - but the fact is that watch sales in general could lose their seemingly never - ending attraction to the parvenus of this World. So what else are they going to go into? - I like their on-ine fashion maison - but I think they have some mature and fossilizing brands - eg Dunhill...and Lancel. If you look at the sources of revenue in LVMH then you will see that if people stop buying bespoke luggage that they are going to be in serious in trouble too...Me? I THINK they are smart enough to diversify their income streams....ergo Hold