Viceroy takes aim at Capitec

[NarrowBandFtw]

Chapter 5 refers to spoofing. Which is illegal. What Viceroy does is perfectly legal.
https://en.wikipedia.org/wiki/Spoofing_(finance)

The act is not written to be specific to spoofing, it's much wider than just that.

 

[FrankieK]

Viceroy? They are doing nothing - apart from pointing out what Capitec is doing.

Allegedly. Short sellers operate like this. Investigate, find something they think is a problem, enter short position, publish their findings, profit.

 

[FrankieK]

The act is not written to be specific to spoofing, it's much wider than just that.

I'm saying Ch. 5 refers to spoofing.

 

[Sideshow Bob]

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 ...

https://www.biznews.com/wealth-building/2018/01/18/meet-fraser-perring-steinhoff/

Meet Viceroy’s Fraser Perring, after exposing Steinhoff, has more SA stocks in his sights

 

[LazyLion]

I agree with their take on Capitec being a predatory lender though... I've had to process too many garnishing orders on our emplolyees from loans taken out at Capitec.

 

[rietrot]

So their warning should be heeded?

No. This should only be news to you if you have been living under a rock for the last 20 years. Any person should know the mess that is unsecured lending in our country. To see if there any real consern you should look at the amount of bad debt capitec has. I haven't read their report yet I'll check later and will see what's reported in the actual financials of capitec.

 

[Sideshow Bob]

Allegedly. Short sellers operate like this. Investigate, find something they think is a problem, enter short position, publish their findings, profit.

trying to find where Viceroy has done all this cycle before.. i mean, is there any evidence that they have profited from their adverse research findings about other companies?

 

[NarrowBandFtw]

Should Capitec clients be worried?

So their warning should be heeded?

Even if (and at this stage that is a BIG "if") Capitec is placed under curatorship there's still no need to panic. Ask any ex-20Twenty customer, been there, done that. The worst that happened back then is your funds got frozen for a few days.

Viceroy? They are doing nothing - apart from pointing out what Capitec is doing.

They're not doing nothing, they have a short position in Capitec shares. So if the Capitec share price falls they will make a profit i.e. they have a financial interest in wanting the Capitec share price to fall. That alone should make you wonder how objective and honest their report would be.

 

[FrankieK]

Even if (and at this stage that is a BIG "if") Capitec is placed under curatorship there's still no need to panic. Ask any ex-20Twenty customer, been there, done that. The worst that happened back then is your funds got frozen for a few days.


They're not doing nothing, they have a short position in Capitec shares. So if the Capitec share price falls they will make a profit i.e. they have a financial interest in wanting the Capitec share price to fall. That alone should make you wonder how objective and honest their report would be.

It could also mean that they have conviction in their findings.

 

[Pegging]

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.

Are there some court cases where people were successfully prosecuted for that?

 

[Magnum]

Guys, My investments are there and maturing next week. wonder If I should move?

 

[/dev/null]

Targeting the Stellenbosch mafia.

 

[ToxicBunny]

Guys, My investments are there and maturing next week. wonder If I should move?

100%

 

[Sideshow Bob]

https://www.biznews.com/wealth-building/2018/01/18/meet-fraser-perring-steinhoff/

Meet Viceroy’s Fraser Perring, after exposing Steinhoff, has more SA stocks in his sights

listening to him right now. in case anyone is interested,
https://www.moneyweb.co.za/in-depth/investigations/viceroy-takes-aim-at-capitec/

 

[sparticus]

website smacks of a default WordPress template

It is a Wordpress template, just checked. FYI

 

[NarrowBandFtw]

I agree with their take on Capitec being a predatory lender though... I've had to process too many garnishing orders on our emplolyees from loans taken out at Capitec.

Yeah, but that is public knowledge and has been for ages AND it is good business still from an investor perspective.

The allegation they make that the loan book is massively overstated / bad debt is out of control to the point of Capitec perhaps not even being solvent is where investors and clients would need to worry.

 

[yebocan]

...Viceroy has short it's Capitec position...have their founder on Bloomberg...

 

[Techne]

Make an amateur Wordpress site.
Get picked up by Bloomberg.
Nothing fishy here. Move along.

 

[saturnz]

Muddywaters has been doing this for years, there are implications for getting it wrong, so they usually are right when releasing reports like this.

 

[Magnum]

Yeah, but that is public knowledge and has been for ages AND it is good business still from an investor perspective.

The allegation they make that the loan book is massively overstated / bad debt is out of control to the point of Capitec perhaps not even being solvent is where investors and clients would need to worry.

Ok guys. Got half a BAR lying there. Where do I move that kind of dough?