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Online Share Trading

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Curro

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Yatagan
Frequent Contributor
Curro really shining today - up 14%
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15 REPLIES 15
LindaB
New Contributor
Lots of single share trades. Just ~R27 trades. Why?
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Yatagan
Frequent Contributor
Yeh, I see that now. Still, been doing well for the last month.
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LindaB
New Contributor
The last month run has been good for my overall portfolio.
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rsalie
Super Contributor
Don't understand it and don't own it.
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Not applicable
Not much to understand. Fundamentally sound given the way private education is blossoming. And has support from some decent institutions especially (PSG). Glad I bought earlier this year.
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rsalie
Super Contributor
Really? Not at R28. Way overpriced.
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Not applicable
Haters gonna hate. I remember the same things being said about Capitec.
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SimonPB
Valued Contributor
nonsense, when was this said about capitec ?? COH is very expensive not matter which way one spins it, doesn't mean it ain't going higher, but fact remains expensive
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partridge
Super Contributor
The consensus is still BUY
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Blik
Super Contributor
I am interested in the schools they have recently bought - some fairly high cost private Christian schools in KZN. At 100K a year, maybe they can turn a profit. Goodness knows some private schools in this country can afford almost anything! I think time will tell with this one - but agree with Simon - they are expensive at the moment. PE is Everest'esqe so to speak.
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mullet_fish
Regular Contributor
I know these guys are genuine but this almost feels like a PONZI scheme (joke just in case they send heavies) - but seriously this story is crazy: - if building schools it takes forever to plan, build and recoup + never ending investment in maintenance,etc - if buying schools generally most will be ex-gov in poor state - Fixed return per school - unlike a WOOLIES store that can bring in lots of new stuff,ideas and grow revenue these guys are limited. You can't keep on cramming in more kids into a classroom or more stuff at the tuckshop! - Cost structure is high on salaries ...this always the toughest cost to maintain. Again a teacher can only handle a certain workload - Unless they can score a massive project to take over and run a school system say in Gauteng? there is little excitement. - As they grow the teacher pool will come under stress with price or with quality as poaching from sub-rate gov. schools not great. The ADVTECH mix feels better as the assets like Varsity College have lots of revenue growth opportunities (business progs, evening classes). They also rely mostly on a flexi-contract labour pool who are quite cheap and come with no fixed contracts or overhead costs. Anyway I wish them well as they run a good set-up.
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WES
Super Contributor
I agree, I served on aschool governing body, and was resposible for the annual budget and finances of the school. The business model of a school limits the profit margin, anybody that thinks curro is going to be the new capitec just because of the same shareholder is going to get hurt badly.
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Beukes
New Contributor
While the strong demand will always be there for private education, that demand comes from less than 5% of the parents of schooled children based on Stats SA metrics. In the big picture, SA's population growth rate has been in a downtrend from 2.48% in 2011 to 1.18% in 2012. Birth rate per 1000 people halved in the past 40 years. The population, which includes immigrants, is positive but slowing. The population segment who can afford private education also has the lower birth rate when compared to the lower-income groups. So the private education "market" is not growing from a long-term perspective. So it stands to reason that to sustain growth and profits, providers can only do two things: reduce costs and increase the share in the existing market. Reducing fees will increase market share over time, but greatly reduce profits on already-tight margins.
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Beukes
New Contributor
Correction: SA's population growth rate has been in a downtrend from 2.48% in >2010< to 1.18% in 2012
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Jughead
Contributor
As things go now government schools can only go downhill. I think that in a few years the demand for affordable private schools will be sky-high. People in South Africa are very concerned about the education of their children and are prepared to pay a substantial part of their income for education. In any case Curro schools are not much more expensive than some of the pathetic model C schools. I've got some Curro shares and wish I bought more earlier.
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