Looking for dips
Yesterday, Capitec issued a trading statement. Ingham Analytics have handily issued a Searchlight entitled “Looking for dips” that coincides with the statement for the six months ended August 2020. The previous two notes on Capitec that proved popular downloads were “Tito’s shocker less of a shocker for Capitec” (dated 25 June) and “Rating retreat” (8 July). In that last note they advised that for those interested in having a stake in the banking sector Capitec is the one to consider. Whilst earnings will be down for the year ended February 2021 for Ingham Analytics the big question is what about the year after? Is there the possibility of a large recovery? What about the state of the balance sheet at a time when provisions for bad debts have risen sharply? Is the stock still a buy? What rating is it now on?
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