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Online Share Trading

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Capitec's on the move again

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Not applicable
With the hundreds of branches they wish to open in the near future, they remind me of Profurn who also opened branches left right and centre! Didn't do them much good!
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SimonPB
Valued Contributor
one of CPI's big winners is their technology .. zero paper, open account immediatelyy .. loan application declined/accepted in ten minutes .. this saves them huge and the big banks will simply never get there as they have to much legacy paper etc ..
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Not applicable
Many of you guys seem very positive about this share(and why not). But is this just reason to keep holding if you already own shares or is it a good investment at current price? I'm actually not sure if there ahould really be any difference between the hold and buy decision process?
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Werner_1
Super Contributor
I agree with Simon, CPI clearly has the advantage of the electronic system, also i read in one of their annual reports that the capital structure is different to the convention, they borrow long term and lend short term, other banks are the opposite, this cannot easily change in other institutions.. i think many of the big banks tried to compete with find it quite hard...
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SimonPB
Valued Contributor
an thsi all said .. I have spoke to big bosses/CEO's of the 4 big banks .. and CPI causes them all stress and they are all sending time thinking about how to stop the CPI onslaught ..
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Werner_1
Super Contributor
I value the BUY and HOLD decisions slightly separately, e.g. I like to buy at a discount where there is value for me as an investor, the HOLD is different i would hold a company that is doing well even if that value margin is not so large anymore, so my buy and hold is different. I guess for different types of investors different prices are applicable, e.g. if you were a international bank like mentioned above buying at current levels could open up new markets, new technology and possibility of expansion into markets you would like to move into - using the infrustructure in place from a company like Capitec would be easier than to move into the market as a totally new entity and start - here you have a company with wonderful growth prospects that is generating cashflow, for an individual investor that couldnt use those above mentioned factors to their advantage i would say one needs more of a discount on price. I wouldnt buy right now, but this could change when they release earnings and asset values again, that could make the discount factor higher... sorry for long message, but i really like the idea of corporate strategy etc.
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Not applicable
Its just a little difficult for me to understand. If you are a value investor surely if there is value in this stock buy it, and if there is better value elsewhere then dispose of it. The only difference in theory should be the transaction costs??
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Werner_1
Super Contributor
Value Investors are long term buy-hold type of people, selling out after a short time to buy something else will not go well with them as this doesnt really fit to long term investing, we like to find businesses at discount prices that operate well and are continuously growing, CPI is one of these and i definately dont see any reason to sell it now! If i could i would like to own the whole thing.
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Not applicable
Simon, with regard to your comment at 13:07. Do the Consultants at Capitec get paid a bonus or comm on personal loans? If so, despite all kinds of wonderful technology the system will be cooked to approve the loans! Ask the guys in Std Bank's audit dept!
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SimonPB
Valued Contributor
no idea .. but they are no consultants .. they are data operators .. they input data and the system spits out an answer ..
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