Viceroy launches fresh attack on Capitec

[BusinessTech]

Viceroy launches fresh attack on Capitec

Short-seller Viceroy says that it has submitted names and evidence of Capitec's questionable loan practices to South Africa's finance committee - including the questions it says Capitec refuses to answer.

 

[The_Librarian]

facepalm

 

[Ianf1]

Viceroy launches fresh attack on Capitec

Short-seller Viceroy says that it has submitted names and evidence of Capitec's questionable loan practices to South Africa's finance committee - including the questions it says Capitec refuses to answer.

Wow Viceroy are being tenacious, but I will continue to hold my few shares in Capitec.
Not sure of the mechanisms of short selling but if this goes against Viceroy who is at risk?

 

[ToxicBunny]

I think Viceroy HAVE to fight this hard.. because they made a mistake, and their bread and better is their reports and if they're wrong their reports are meaningless and they no longer make money.

 

[The_Librarian]

I think Viceroy HAVE to fight this hard.. because they made a mistake, and their bread and better is their reports and if they're wrong their reports are meaningless and they no longer make money.

Like the boy who cried wolf once too many?

 

[yebocan]

meanwhile...

Viceroy’s founder, Fraser Perring, tells Euromoney he has done further research, not yet made public, on South African firms in mining, pharmaceuticals and healthcare. “We’re still working on Capitec, as well as a large project in the US,” he says.

https://www.euromoney.com/article/b...s-off-the-steinhoff-slayer?copyrightInfo=true

 

[biena]

At least they are now being called short-sellers and not research firm.

meanwhile...
https://www.euromoney.com/article/b...s-off-the-steinhoff-slayer?copyrightInfo=true

Article is signup/subscription only

 

[Cius]

These guys are snakes. That does not mean Capitec is angelic, but viceroy cares nothing for anyone other than themselves and their short position in these companies.

 

[R13...]

Wow Viceroy are being tenacious, but I will continue to hold my few shares in Capitec.
Not sure of the mechanisms of short selling but if this goes against Viceroy who is at risk?

Viceroy would be the ones at risk if the gamble fails to pay off. The lender collects a fee and get to maintain their long position and Viceroy lose the bet.

 

[hellfire]

Viceroy launches fresh attack on Capitec

Short-seller Viceroy says that it has submitted names and evidence of Capitec's questionable loan practices to South Africa's finance committee - including the questions it says Capitec refuses to answer.

Who is exactly is "South Africa's finance committee"?

 

[Ianf1]

Viceroy would be the ones at risk if the gamble fails to pay off. The lender collects a fee and get to maintain their long position and Viceroy lose the bet.

How does the lender protect themselves if Viceroy can't cover a loss?

 

[biena]

Who is exactly is "South Africa's finance committee"?

They are hoping that people assume it is Standing Committee on Finance . Until confirmation from the comittee itself is forthcoming be wary.

 

[R13...]

How does the lender protect themselves if Viceroy can't cover a loss?

The lender just want the same number of shares back regardless of price as they're hodling. Viceroy still have the shares so the seller takes them back and viceroy can go suck on something.

It is likely Viceroy cannot sell the shares if their position fails so the loss they suffer really is the money they paid to borrow the shares.

 

[biena]

I don't know but i think they'd have some sort or collateral they can collect against in a case like that. Viceroy would have to show they have non liquid resources to cover a failure. Including ability to go to the bank and borrow

Failing all that there is bankruptcy. Risky business.
.

 

[Ianf1]

The lender just want the same number of shares back regardless of price as they're hodling. Viceroy still have the shares so the seller takes them back and viceroy can go suck on something.

It is likely Viceroy cannot sell the shares if their position fails so the loss they suffer really is the money they paid to borrow the shares.

But Viceroy sold the shares and won't have them anymore. So if there is a bear squeeze they could be in trouble. How do the lenders guard against this risk?

 

[Kloofvreter]

Fokken Viceroy :crylaugh: TSEK

 

[R13...]

But Viceroy sold the shares and won't have them anymore. So if there is a bear squeeze they could be in trouble. How do the lenders guard against this risk?

They must have assets to enable them to buy the shares back before the short period expires. In fact the lender can call the shares back at any point leaving the short seller to go and buy the shares at market price regardless of whether they win or lose.

 

[KingMikel]

Failing all that there is bankruptcy. Risky business.
.

There's also jail time. If this investigated and it comes out as market manipulation, those Viceroy okes are going to jail.

 

[Batista]

Typical short seller behavior.If no one buys into Viceroys claims then they are going to loose a load of money.

What IF Viceroy is correct?Thats an even scarier situation.

 

[NarrowBandFtw]

including the questions it says Capitec refuses to answer

:crylaugh: as if they are under ANY obligation to answer ANYTHING viceroy asks, gfy vultures, eat some enterprise polony while you're at it.