absa only bought 50% i think woolies wanted someone with experience in the field to run this opertion, if they only sold 50% it tells me that the bussiness model is viable but they dont know how to run it profitably, any thoughts.
Well, seeing as WHL's accounts receivable and interest income form a large part of their profit, and given the current spate of defaults and interest rate hikes, i can see why they needed to call i the experts.
I find there reasoning interesting. I am friends with people involved in retail credit and they have always had the veiw that retailers have always had better systems in place to manage risk as almost all there lending is uinsecured were banks almost always have assets to back lending. So much so he was poached and now works at standard bank.
WHL has been working on a base for some time now. Lots of signs that it don't want to go lower, but no signs that it is willing to go up. Sure, the gap today is a good sign, but I would still like to see a break out above 1260 before getting interested.