Capital Appreciation

At 64 cents it is trading at a forward yield of 5% and a PE of 6.7  

53% return in four months.

Phenomenal earnings growth announced this morning with more to come.

Nice rise in share price since announcing its results .On decent volume too.

Fair Value =R1.33

Phenomenal earnings growth announced this morning with more to come.

Nice trading update, surprised to see the share price not taking off.

At 64 cents it is trading at a forward yield of 5% and a PE of 6.7  

As a rule, I do not invest in entities that do not have a proven track record - investing 101.  I was also (and remain) deeply concerned about SPAC's generally, given that all of the remaining SPAC's (I say remaining as I exclude those which have had to delist because they did not acquire Viable Assets within the prescribed time period) have largely tracked sideways or backwards and with thin volumes.  That said, I was intrigued by this counter because of the management credentials of the founders.  I doubled my position at current levels and will continue loading up on this counter at current levels. 

The underlying entities which they have acquired have a proven track record as demonstrated by the fact that it is already paying dividends. 

Time to buy?

 

Shares in Capital Appreciation (Capprec) shrugged off a surge in the fintech company’s interim revenue and operating profit, closing flat on Tuesday, with analysts saying that the counter is undervalued.

Despite the positive outlook, the share closed flat on Tuesday at 75c, below its 12-month high of R1. Capprec bought back 25-million treasury shares during the period.

"We thought the share at this price is a screaming ‘buy’. If you had to compare our price performance against comparable companies in the sector internationally, we’re at a huge discount," said Sacks.

Directors and management hold 33% of the company, with the Public Investment Corporation holding 21% and Patrice Motsepe’s African Rainbow Capital about 3%.

Capprec was undervalued relative to its business fundamentals and earnings outlook as a growth stock, said independent analyst Mark Ingham.

"The market wanted to first see organic growth. That is going to come.

"This is a highly entrepreneurial, very innovative company with proprietary technology, which is a big barrier to entry in this business," said Gilmour.

Provided Capprec could bring in the earnings, the share was "very cheap indeed".

As a rule, I do not invest in entities that do not have a proven track record - investing 101.  I was also (and remain) deeply concerned about SPAC's generally, given that all of the remaining SPAC's (I say remaining as I exclude those which have had to delist because they did not acquire Viable Assets within the prescribed time period) have largely tracked sideways or backwards and with thin volumes.  That said, I was intrigued by this counter because of the management credentials of the founders.  I doubled my position at current levels and will continue loading up on this counter at current levels. 

Time to buy?

Shares in Capital Appreciation (Capprec) shrugged off a surge in the fintech company’s interim revenue and operating profit, closing flat on Tuesday, with analysts saying that the counter is undervalued.

Despite the positive outlook, the share closed flat on Tuesday at 75c, below its 12-month high of R1. Capprec bought back 25-million treasury shares during the period.

"We thought the share at this price is a screaming ‘buy’. If you had to compare our price performance against comparable companies in the sector internationally, we’re at a huge discount," said Sacks.

Directors and management hold 33% of the company, with the Public Investment Corporation holding 21% and Patrice Motsepe’s African Rainbow Capital about 3%.

Capprec was undervalued relative to its business fundamentals and earnings outlook as a growth stock, said independent analyst Mark Ingham.

"The market wanted to first see organic growth. That is going to come.

"This is a highly entrepreneurial, very innovative company with proprietary technology, which is a big barrier to entry in this business," said Gilmour.

Provided Capprec could bring in the earnings, the share was "very cheap indeed".

As a rule, I do not invest in start-ups or cash-shells, but took a little punt on this one due to who the founders and management are. Like most of the SPAC's that have listed over the past 2 yeas, this share has gone nowhere fast, but at least the acquisition of Viable Assets has been announced. Am monitoring the movement on this one and may look to increase my holding if it gains traction. Does anyone have any robust views one way or the other?

Ps: apologies if there is already another thread open in relation to this share, but I couldn't find anything.

Edited by SoleTrader, 21 March 2017 - 05:08 PM.

I won't touch CTA, much rather buy more into the already successful PSG group

As a rule, I do not invest in start-ups or cash-shells, but took a little punt on this one due to who the founders and management are. Like most of the SPAC's that have listed over the past 2 yeas, this share has gone nowhere fast, but at least the acquisition of Viable Assets has been announced. Am monitoring the movement on this one and may look to increase my holding if it gains traction.  Does anyone have any robust views one way or the other? 

Ps: apologies if there is already another thread open in relation to this share, but I couldn't find anything.