Capitec has had a good run with little competition in their space, but that is likely to change. Teba Bank, for example, is going to start moving from mining into the broader market - and they have some heavy political muscle behind them. Other retail banks are starting to replicate the Capitec model too. Can growth, therefore, continue at historical rates??
...and they are getting a new client on Friday. I've been ripped off far too long by our "green" bank, they have also now tried to lure me to their private banking arm which surprise, surprise charges more for stuff I'm never going to use anyway. In the same breath, I will never buy a share with a chart like Capitec. It's slowly running out of breath, and will correct. That will be a buying opportunity of note. My dream said it will correct to R118.
I bought CPI a few years ago, never looked back and have multiplied my investment in them. very happy! I would also not buy right now, I do believe the company has a huge future and will most likely gain in earnings and clients over the years, but my investing is buying where i see a discount to the intrinsic value and CPI is very high, i would aquire as much as possible on a sizable correction (if it isnt caused by some fundamental shift in the firm)!
I think I saw that same comment about Didata or any other ten bagger share for that matter. Earnings dissappointment = huge correction on this one, and the earnings expectation is build right into that rising 27+ PE.
couple of thorts .. results are out .. and comparing DDT to CPI is wild, DDT has no earnings, ran a PE of over 100x .. and I remember when it hit R70, everybody said they'd buy on a pull back to R50 .. then it hit R100, they said they'd buy on a pull back to R70 .. an so on .. yes it will pull back one day, but when and to what ??