CAPITEC | New entrants into the market will be a problem
Technically, I like Capitec for a short to medium-term sell down to R1095 (currently trading around the R1284 mark).
First step is to wait for the weekly close. If price closes below the upper trendline I've drawn in, that would suggest that the recent highs just aren't going to hold. I don't expect an aggressive fall, but I don't see serious buyers coming in until the R1095 area at the earliest.
How price behaves at that point will give me an indication as to whether I want to hold for more downside, or cash out.
Fundamentally, CPI is in an interesting place. A typically resilient stock, but with a headwind.
Standard Bank are closing 104 branches in an increasingly difficult market, encouraging their clients to use more online services.
Capitec (although recently having acquired Mercantile Bank, helping speed up its entry into the business market) is heavily retail and branch focused. Up until recently Capitec provided the kind of services that were not available elsewhere in SA, at the cost Capitec offered its clients. However, this has changed with the arrival of Tyme Bank for one, and soon Bank Zero, a business underpinned by the hardwork successes of serial entrepreneur Michael Jordaan.
What is Capitec's answer to competitors that offer what they do, at better rates (some are zero feed accounts) with far fewer overheads?
First step is to wait for the weekly close. If price closes below the upper trendline I've drawn in, that would suggest that the recent highs just aren't going to hold. I don't expect an aggressive fall, but I don't see serious buyers coming in until the R1095 area at the earliest.
How price behaves at that point will give me an indication as to whether I want to hold for more downside, or cash out.
Fundamentally, CPI is in an interesting place. A typically resilient stock, but with a headwind.
Standard Bank are closing 104 branches in an increasingly difficult market, encouraging their clients to use more online services.
Capitec (although recently having acquired Mercantile Bank, helping speed up its entry into the business market) is heavily retail and branch focused. Up until recently Capitec provided the kind of services that were not available elsewhere in SA, at the cost Capitec offered its clients. However, this has changed with the arrival of Tyme Bank for one, and soon Bank Zero, a business underpinned by the hardwork successes of serial entrepreneur Michael Jordaan.
What is Capitec's answer to competitors that offer what they do, at better rates (some are zero feed accounts) with far fewer overheads?
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First target hit