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FINBOND THE NEXT CAPITEC

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Pepi
Regular Contributor
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7 REPLIES 7
THRESHOLD
Super Contributor
Yes - they didn't pick the first Capitec - so what qualifies them to pick the next Capitec? Where were they 10 months ago when this share was tradng at 6c?
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Pepi
Regular Contributor
Exactly right - I recall just a few months ago when at 14c you were talking her up, actually even from 7c. And this rise is on good volume as well. I just don't know if management is capable enough - i'm not doubting them or otherwise, i really just don't know.
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kwagga
Super Contributor
It's got everything going for it, but a PE of 60 gives me the heebeegeebees.
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THRESHOLD
Super Contributor
I still hold most of mine. I certainly wouldn't be buying at these lofty levels.
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Not applicable
To compare to Capitec's growth story is not viable, IMO. Capitec's balance sheet when they started out in 2002 was 10 times bigger than Finbond's. I think Finbond's market cap now is like R70m vs Capitec that had R500m in 2002 already. Much Much easier for Capitec to have raised funds for fixed infrastructure expansion (branches and point of sale infrastructure and rollout). Still though, this is an attractive sector, and Capitec has proven to the investment world that retail banks can be taken on in SA very profitably. So maybe Finbond can play in this space after all - but I have my real doubts about their comparative ability to build a point of sale infrastructure. Retail banking, I think, will be beyond their reach. That is not an industry that you can grow organically from a base as big as theirs.
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THRESHOLD
Super Contributor
Capitec had a market cap of R25 million in the beginningf. Finbond has a market cap of around R1,2 billion at this point.
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Pepi
Regular Contributor
I understand that Summit will be hosting the FINBOND CEO next week and I think it will be on *Small Caps* Wednesday 8.30
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