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CPI

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Valued Contributor
update now sees their forward PE at around 13x .. all of a sudden not so expensive, lovely thing EPS growth ..
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12 REPLIES 12
Not applicable
are there any more lights left for them to shoot out? 40% growth! Again! This company is unbelievable. Results are fairly priced in though, puts it in line with the forecasts in OST. But would be worth buying on a dip for sure.
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Valued Contributor
expected was +44%, smack in the middle .. growth has to slow, and frankly i expected closer to 35%, so exceeded what I was lookign for as first half wasn;t that shoorting out the lights .. growth is now into middle and upper income and longer term loans, home loans etc. which increases risk and/or reward ..
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Super Contributor
I own some of these, but not to put a damper on this but wasnt this the buzz that went round with Enron, "how is ...% growth possible?", "this company is unbelievable", shouldnt we at some point start questioning is this really possible?
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Valued Contributor
at the very basic level enron were cooking the books with auditor help ..
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Super Contributor
true, but couldnt capitech be doing the same? Anyways just scared of that hindsight moment, where we all go "well it was just obvious that this wasnt right..."
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Not applicable
Yip, and as a man on the street, you will never be able to catch that kind of corruption. All your tools for evaluation come off the financials of the stock. Not even TA is likely to save you. Investopedia has quite a nice article on some of the traps in the cash flow statements to look for http://www.investopedia.com/articles/basics/05/062405.asp#axzz1ltTgGRU0
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Super Contributor
BAD DEBTS - watch this space!
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Valued Contributor
yip, we're in early stages of a unsecured credit bubble .. but it ain't likely to pop any time soon ..
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Valued Contributor
of course they could, as could absolutely any other stock you hold ..
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Not applicable
Ja, but now you are leading into the hardest question in investing - when to sell. When to buy is obvious, selling distinctly harder. Just remember, you trade the price but buy the company. If you like the direction Capitec is going, then this conversation is moot. If you are trading it, and looking for a time to take profit, well that is a debate that will carry on for some time. I am sure if we dug into some old threads from 1998 on MTN similar questions would have arisen.
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Valued Contributor
agree, I sold most of my CPI last year, it had become massively over weight in my portfolio .. I will sell rest on a break down or a sudden slowing in growth .. todays big number makes a sudden slow down more likely .. so far we seeing a slow(ish) slowing of growth, they no longer +50% ..
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Not applicable
lol - I would be quite happy with the rest of my portfolio if they were reporting 40% plus growth! We are talking of a slow down to a meager 44%!
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