Viceroy Research targets Capitec Bank over lending practices

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Viceroy Research targets Capitec Bank over lending practices

The short seller who wrote a damning report about accounting irregularities at Steinhoff International Holdings NV has found a new target in Capitec Bank Holdings Ltd., South Africa’s best-performing stock over the last decade. The shares fell the most in more than 15 years before paring losses.
 
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Nope just some dodgy research company who make money from trying to influence share prices...
I would hope so, but they were indeed the ones who reported on the Steinhoff issues - so, I would not simply through their findings or reports aside. For many South African consumers currently banking with Capitec, I truly hope you are right though.
 

backstreetboy

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I would hope so, but they were indeed the ones who reported on the Steinhoff issues - so, I would not simply through their findings or reports aside. For many South African consumers currently banking with Capitec, I truly hope you are right though.
After Jooste resigned already. By that time it didn't take a rocket scientist to see what's up.
 

rietrot

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Nothing new, everyone already knew capitec was handing out easy money to people that can't really afford it. All SA businesses do it. I'm sure Capitec manage their risk to a sufficient level.
 

Mystic Twilight

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This is about the shares not the customers or a bank run.
True, I was just saying given the publicity of Viceroy/Steinhoff that Capitec clients could interpret a perceived risk to their accounts based on fear-mongering by the Viceroy report that Capitec seems to have under reported their loans/defaults and therefore would want to protect their money by moving it away (probably after shareholders have sold their shares due to real or perceived risk), which then you could get a bank run. You can't close your savings account with Steinhoff, but you can with Capitec.
 
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Good news is that the Reserve Bank confirmed that Capitec is solvent. Should anything happen to the contrary, at least all accountholders and investors would have recourse in recovering any losses directly from the South African Reserve Bank.
 

Ockie

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I would hope so, but they were indeed the ones who reported on the Steinhoff issues - so, I would not simply through their findings or reports aside. For many South African consumers currently banking with Capitec, I truly hope you are right though.
After Jooste resigned already. By that time it didn't take a rocket scientist to see what's up.
Listened to a interview on 702 about this as I was driving to customers. The guy pretty much said these Viceroy or whatever they are called did not bring down Stienhoff. It was going to happen regardless. They just timed their report very well. Further, he said that he thinks these people spoke to some disgruntled employees and customers and pretty much slapped a report together. SARB also came out saying that Capitec is well funded and well capitalised.

I wonder if these guys put out a report like this without any substantial evidence if Capitec can go after them legally?
 

rietrot

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I wonder if these guys put out a report like this without any substantial evidence if Capitec can go after them legally?
I don't see the point of that. Then we would have to go after everyone who has a incorrect opinion of something.

Freedom of speech.
 

Ockie

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I don't see the point of that. Then we would have to go after everyone who has a incorrect opinion of something.

Freedom of speech.
If their facts are not correct and or collaborated, then this could have serious consequences for 1. The share price of this company and 2. Could have caused a run on the bank having DIRE consequences for the South African financial market. That is not just me calling you a po$s and saying it is freedom of speech .... something like this could have serious repercussions for a sovereign country of which you are not a part of.
 

NarrowBandFtw

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I don't see the point of that. Then we would have to go after everyone who has a incorrect opinion of something.

Freedom of speech.
Freedom of speech doesn't let you defame others without consequence. Capitec can pursue a libel case, in fact, if this turns out to be a sham I sure as hell hope they do just that.
 

The_Librarian

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I have no issues with Capitec at the moment :p

Happy chappy. Everything works as it should - and there are the odd outage here and there, nothing to hoot about.
 

rietrot

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If their facts are not correct and or collaborated, then this could have serious consequences for 1. The share price of this company and 2. Could have caused a run on the bank having DIRE consequences for the South African financial market. That is not just me calling you a po$s and saying it is freedom of speech .... something like this could have serious repercussions for a sovereign country of which you are not a part of.
Their rightful punishment is that they just lost all credibility. Their future reports will be worthless.
1shareholders should know better and they should do their research before buying a share, if they panic sell and lose money it's their own fault.
 
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