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Capital Appreciation

CTA

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#1 Bullhunter

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Posted 25 May 2018 - 06:53 PM

Jamie Carr, Financila Mail, 25 May 2018

Punters who like a flirtation with the minnows expect the potential of significant upside to compensate for the risks attached, and these buccaneers of the investment world could do a lot worse than to have a peep at IT services firm Capital Appreciation.

It doesn’t have a long record, but 2018 was a transformative year, and its market cap at R1.4bn is just starting to drift into that sweet spot where institutional investors might be tempted to have a nibble.

What’s really appealing, however, is that the business areas in which it deals have the potential to take off like a homesick angel. The largest division operates in payments and payment infrastructure, where it looks after payment devices for its banking and institutional clients.

Despite the inevitable lag provided by a depressed retail sector, this division has more than doubled the number of terminals managed in the year, an exceptional performance. Its Dashpay operation offers innovative payment services that will fit in well with the rapidly changing needs of the African market.

The business areas in which Capital Appreciation deals have the potential to take off like a homesick angel
Jamie Carr

Its software and services operation offers solutions to its financial institutions client base, while piling into research and development into cutting-edge areas aimed at the next phase of the technological revolution, including machine learning, artificial intelligence, big data and blockchain.

This is clearly an area where there are plenty of elephant hunters prowling around with much deeper pockets than Capital Appreciation, but if it can hit a target or two the rewards could be mighty.


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#2 Bullhunter

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Posted 18 May 2018 - 12:34 PM

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

53% return in four months.


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#3 Bullhunter

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Posted 18 May 2018 - 12:30 PM

Phenomenal earnings growth announced this morning with more to come.

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


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#4 Bullhunter

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Posted 16 May 2018 - 10:31 AM

Fair Value =R1.33


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#5 Bullhunter

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Posted 16 May 2018 - 10:20 AM

Phenomenal earnings growth announced this morning with more to come.


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#6 Shi

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Posted 08 May 2018 - 01:11 PM

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


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“One day Alice came to a fork in the road and saw a Cheshire cat in a tree. Which road do I take? she asked. Where do you want to go? was his response. I don't know, Alice answered. Then, said the cat, it doesn't matter.” - Lewis Carroll

#7 hedge Fund

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Posted 24 January 2018 - 02:02 PM

Yes Bullhunter i agree its time to load up on CTA. I am looking to double down too at the current price.



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#8 Bullhunter

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Posted 22 January 2018 - 04:19 PM

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


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#9 Bullhunter

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Posted 29 November 2017 - 02:54 PM

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. 


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#10 NotsoIntelligent Investor

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Posted 29 November 2017 - 10:07 AM

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. 


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#11 Bullhunter

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Posted 17 November 2017 - 10:38 AM

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".


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#12 SoleTrader

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Posted 21 March 2017 - 05:08 PM

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.

Why invest in something with an unproven business model? I see GAIA listed under the leadership of one john oliphant, who, if you do some digging, was the former CIO or CEO of the Government pension fund. Where he was asked to leave under suspicious circumstances....

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

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#13 PlatinumWealth.co.za

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Posted 13 March 2017 - 03:07 PM

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


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#14 NotsoIntelligent Investor

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Posted 13 March 2017 - 12:20 PM

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.


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