Viceroy takes aim at Capitec

Thanks for the explanations guys.

TIL about Shorting Stock.

Something new everyday.
 
flippakitten said:
Where's the Viceroy investigations into Trillian, Glencore, ANC and all the Zupta links?
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Are Trillian and the ANC listed entities?

How can you investigate the financials of something that is not public, and in which you anyway can’t make money by shorting since it’s not public.

Glencore SA is probably like 1% of Glencore’s income so rather pointless.
 
surface said:
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?
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Mymedx and Steinhoff.
 
Magnum said:
Does this mean I dump 250K into Capitec shares?
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It's a gamble as they are bit expensive still and didn't drop that much. Most people would likely consider them a good investment, but you should ideally diversify and not dump all your money in one share unless you know what your doing and understand the risk.
 
The Viceroy guy admitted he coined it with stienhoff.

Regardless of what viceroy is (and they appear to be scalpers), the big question right now is are they right or not. SARB seems to think Capitec is fine. Capitec is claiming they are fine, but there are a few oddities:

1. Captic board members in common with Steinhof
2. Capitec's astonishingly low impairment ration for the type of business they are, after all poor people are still poor.
3. Capitec's almost too good to be true story

So I am kind of in a watch and wait situation with them. I suspect there is definitely something dodge going on at Capitec, especially in terms of how they are rolling their debt over, but the scale of it is the key. What the Viceroy guys did that was most interesting is look at the numbers and put down hard estimates on loans that should have already been written off. The thing about a lending company is they claim a lot of profits for money they have yet to receive. The size of the loan book, level of the interest rate they charge, and impairment percentage are pretty much all you should care about with them. If they are fudging the impairment ratio then its very serious. Its one of the most important financial figures for a bank.
 
Got a SMS form Capitec now. Official response is being complied after report has been reviewed.
 
rietrot said:
It's a gamble as they are bit expensive still and didn't drop that much. Most people would likely consider them a good investment, but you should ideally diversify and not dump all your money in one share unless you know what your doing and understand the risk.
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I never invest in banks for another reason, the balance sheets are too complex and too subject to manipulation.
 
Capitec never really appealed to me, it was ridiculously cheap but that's a bad motivator to move banks.
 
f2wohf said:
I never invest in banks for another reason, the balance sheets are too complex and too subject to manipulation.
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You technically shouldn't be investing in a single share in any company unless you know what you are doing. Just look at Steinhoff.

I don't invest in anything other than index funds for that reason.
 
Verde said:
Guaranteed by whom? The reserve bank's implicit guarantee is discretionary and should not be seen as a forgone conclusion if a small bank like Capitec folds. I agree that they will likely step in, but it is not guaranteed.
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They are the second largest bank in South Africa :erm:
 
Viceroy is headed by a 44-year-old British citizen and ex-social worker John Fraser Perring (pictured above) who operates between Lincolnshire and New York
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https://www.moneyweb.co.za/in-depth/investigations/viceroy-unmasked/

Clearly this guy is of the highest moral character.
Social worker Fraser John Perring has been struck off the HCPC Register for failing to contact a child’s extended family to arrange alternate care and then falsifying case records to cover his failure whilst working for Lincolnshire County Council.

A panel of the HCPC Conduct and Competence Committee heard that Fraser John Perring was Child A’s allocated social worker during care proceedings. It was his responsibility to ensure he made contact with the child’s extended family and he had been directed by both the court and his manager to do this. He did not contact Child A’s extended family for over six months and instead recommended a closed adoption.

The Panel further heard that Fraser John Perring’s failure was exposed due to an enquiry from Child A’s guardian, which caused him to contact Child A’s aunt and uncle only a few days before the final hearing of the case. To cover his failings, he then created false entries in the case file to show he had phoned them three times and created a letter to them dated two months earlier.

Panel Chair Clare Alexander Yule commented:

“In the Panel’s assessment, the established facts and misconduct are very serious involving deliberate, persistent and dishonest conduct to hide mistakes. Such serious dishonesty continues to cast a shadow over the registrant’s current fitness to practise. He has failed to accept responsibility for any of his failings and subsequent dishonest cover up.
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http://www.hpc-uk.org/mediaandevents/pressreleases/?id=748
 
rietrot said:
Nothing. This is speculation mostly aimed at affecting the share price of the business. They claim capitec overstated its assets and inflated its loan book, it means capitec isn't such a great business to invest in that people think it is.(actually buy their shares on the jse) but there isn't any risk to normal banking just yet. Their might be if people panic and create a bank run for no reason.
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I thought you rebuked me earlier about a bank run in other thread :erm:.
 
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