54 replies to this topic

[Goliath]

Good for SA, bad for unsecured lenders

 

State to put breaks on reckless lending

 

http://www.moneyweb....eckless-lending

Unfortunately yes!

[gamma]

Good for SA, bad for unsecured lenders

 

State to put breaks on reckless lending

 

http://www.moneyweb....eckless-lending

[vuilhond]

Howzit guys.On the note of unsecured lenders,ive been accumulating quite a bit of BFS.This is a speculative play,but I feel this is might be a good company for a African expansion story,with them already being in 12 African countries.If they can get their business model and operations together I feel this one has got massive upside??? 

Any views on BFS?

[Goliath]

well all the banks will be effected...

 

Big picture all retailers, mtn   and Vodacom  because this economy will tank big time going forward!! Disposal income amongst most people not there anymore to spend!!! here im talking 12 months plus!!

Would be interesting to see the way forward.. especially Abil and the other big gunners!

[HDB]

well all the banks will be effected...

 

Big picture all retailers, mtn   and Vodacom  because this economy will tank big time going forward!! Disposal income amongst most people not there anymore to spend!!! here im talking 12 months plus!!

[BBW]

 Not WHL!! Their account customers are the more affluent!!

 

Mpc very small part of their sales!!

Thanks  for that HDB! I hold both companies and hold them both in high regard; wouldn't really like to get rid of them,  but I'll keep a close eye. Just would like to know which other companies also has this (big or small) risk?

[HDB]

 Not WHL!! Their account customers are the more affluent!!

 

Mpc very small part of their sales!!

 

 

I need a little help here, as I'm having trouble finding out which are all the companies on the JSE that offer micro- / unsecured lending? Think I want to make sure to stay away from any of them for a while?

 

Offhand I can think of CPI, ABL, JDG, TRU, TFG, MPC(?), WHL(?)

Edited by HDB, 21 May 2013 - 09:41 AM.

[BBW]

I need a little help here, as I'm having trouble finding out which are all the companies on the JSE that offer micro- / unsecured lending? Think I want to make sure to stay away from any of them for a while?

 

Offhand I can think of CPI, ABL, JDG, TRU, TFG, MPC(?), WHL(?)

[Goliath]

Hey Goliath, I see TC has held up surprisingly well in the midst of the carnage. You still holding? 

They have lost some ground but I'm still holding, not going to sell it soon.. released good results recently and if it really goes down some more at around R6.50 I'll double down. The unsecured lending area (especially Abil!!) is currently a hot topic (negatively), but like everything else it'll probably settle down and perhaps good time to buy now when people are fearful and the chances of a "credit bubble" is a bit less than it use to be? (me thinks!)

 

It's a good business with solid management and recent results good given the climate = I'm happy to hold for now.

[gamma]

Worst you can do is sell, if the financials look not too bad..? But it's a tough call, I've made such calls based on market sentiment when the company in whole doing quite well actually and lost most of my money that way. (Look at Woolies when that dip occurred due to that white's are not hired by them sometime last year, can't remember when).

 

I'm happy with Transaction Capital currently, think the interview with Mark on Moneyweb explains it quite well and due to it moving in same circles as Abil + it relatively new company + not very liquid currently could be a offset for most investors. Hope I'm right, all in at R7,06!

 

Hey Goliath, I see TC has held up surprisingly well in the midst of the carnage. You still holding? 

[Goliath]

Worst you can do is sell, if the financials look not too bad..? But it's a tough call, I've made such calls based on market sentiment when the company in whole doing quite well actually and lost most of my money that way. (Look at Woolies when that dip occurred due to that white's are not hired by them sometime last year, can't remember when).

 

I'm happy with Transaction Capital currently, think the interview with Mark on Moneyweb explains it quite well and due to it moving in same circles as Abil + it relatively new company + not very liquid currently could be a offset for most investors. Hope I'm right, all in at R7,06!

[HendrikB]

http://www.moneyweb....-is-a-good-shor

 

funny how all the doomsday prophets are coming out in droves.  Where were they a week ago?

[Goliath]

Too much hype around Abil currently, some say good buy others like the link above say it's a short.. where to go!

[delta66]

http://www.moneyweb....-is-a-good-shor

[Goliath]

Makes for grim reading, luckily I'm not a trader as I would've surely downed a few scotch after the past few days with Abil. If they keep their divi it's a buy, but currently I'd rather bet on winning horses now and look at this one a bit later when the dust has settled!

[HendrikB]

Wild ride with Abil today, jeesh! Nice article on Moneyweb for the guys who holds Transaction Capital (Am I the only one on this forum it seems..?)

 

http://www.moneyweb....ction-capital-2

 

good luck with TC. hope your luck is better than mine.  

[HendrikB]

http://finweek.com/2...ed-abil-trader/

 

thanks for that gamma.  All eyes on May 20 and the divvie.  

Edited by HendrikBruwer, 08 May 2013 - 10:16 PM.

[gamma]

http://finweek.com/2...ed-abil-trader/

[Goliath]

Also wondering what the TC said,hendrik you have some more info? Will be watching this one,not for buying but to see where this one will be heading..

[gamma]

Did anyone attend the Abil TC? What did they say?

 

Actually the SENS is rubbish. Firstly, this is the kind of crap we heard from US lenders during the credit crisis..

1. Our earnings have taken a hit but we think we've got it now under control

2. It takes 6-12 months for excess risk to manifest and the worst is behind us

3. Oops...we bankrupt

 

While I don't think Abil will go bust I do think they are underestimating the situation (or embellishing) 

They were bloody greedy in giving lots of people massive unsecured credit over the past few years and now will likely pay the price.

 

If you bought Abil 1 year ago you are down almost 45%