Viceroy takes aim at Capitec

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Viceroy Research has taken aim at another South African company: Capitec.

In a report published this morning, the firm alleges that the retail bank is a “sheep in wolves clothing”. “We believe that Capitec is a loan shark with massively understated defaults masquerading as a community microfinance provider,” it said adding that the South African Reserve Bank & Minister of Finance should immediately place Capitec into curatorship.

“We have taken note of the Viceroy report on Capitec Bank. We are currently in the process of investigating the report in detail and will respond appropriately,” Capitec CEO Gerrie Fourie told Moneyweb.

Shares in Capitec have fallen more than 7% following the release of the report, with shares in stakeholder PSG Group over 10% by 10.30am.
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Read more: https://www.moneyweb.co.za/in-depth/investigations/viceroy-takes-aim-at-capitec/
 
What are the names behind Viceroy Research?
Anybody got names?
 
So how long until Viceroy's Gupta links are uncovered?

Pure speculation of course, but it is curious how they're going after all the WMC guys ...
 
Techne said:
What are the names behind Viceroy Research?
Anybody got names?
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Twitter account has barely existed for a year, website smacks of a default WordPress template that got conjured by an intern at Bell Pottinger during his/her lunch break, official email address is a gmail address and "about us" identifies them as: "A group of individuals that see the world differently"

Something is proper fishy here, how the hell do they even get airtime?!?
 
They are short sellers.

So they take bets on the share price dropping.

Then they unleash their reports / rumors which hopefully causes the share price to drop.

Then they make huge profits.

This is 100% legal.
 
Pegasus said:
They are short sellers.

So they take bets on the share price dropping.

Then they unleash their reports / rumors which hopefully causes the share price to drop.

Then they make huge profits.

This is 100% legal.
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That is definitely not legal.
 
Researchers who release buy sell information are not allowed to take positions based on their recommendations. Was a guy in france who tried that a year or two back. It did not end well for him.
 
The viceroy guys apparently uncovered the mess at steinhoff or at least they got that report out at the time of the steinhoff collapse. Moneyweb had some stories on who they are. If anyone is interested.
 
Pegasus said:
Which law there did they break, and how is their report different to a normal broker or analyst's report where they make Buy/Sell recommendations?
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Section 80 of the Financial Markets Act 2012

Normal buy/sell recommendations are not intended to explicitly move the market, intentional and active market manipulation is illegal in South Africa.
 
rietrot said:
The viceroy guys apparently uncovered the mess at steinhoff or at least they got that report out at the time of the steinhoff collapse. Moneyweb had some stories on who they are. If anyone is interested.
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So their warning should be heeded?
 
Well, Viceroy report is obviously useless if they say "masquerading as a community finance provider". Now if they had said "masquerading as a bank", they'd at least be factually correct. So what else did they get wrong?
 
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