Description

Simon Shares

• Local CPI 7.1% for March up from 7.0% in February. Expected was 6.9%. Core inflation 5.2% vs expectations of 5.1%.
  • Rates higher for longer.
• Reviewing Minister Pravin Gordhan's portfolio. Too many stocks, why not more ETFs?
• Platinum at all-time highs in rands. This as it trades at more than 50% off the all-time US$ highs from 2008.
• Still long all my index trades.

Time to sell Capitec* (JSE code: CPI) as results show them as ex-growth?

• Return in Equity (RoE) 26%
• Cost-to-income (CTI) 39%.
• Impairments +80% and worrying the market

But my worry is it is priced +2x valuations of the other four big banks and it is now largely a mature bank. Sure low cost base, but I do not think it deserves that high valuation so am likely exiting after holding since 2009.

* I hold ungeared positions.