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Capital Appreciation Ltd.Capital Appreciation Ltd.Capital Appreciation Ltd.

Capital Appreciation Ltd.

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CTA trade ideas

Our opinion on the current state of CAPPREC(CTA)Capprec (CTA) is a fintech company offering payments and payment infrastructure as well as software and services. Patrice Motsepe's African Rainbow Capital (ARC) owns a stake in the company. The payments side of the business is handled through African Resonance and Dashpay, while the software side involves systems development and consulting. The company owns 17.5% of Resonance Australia, a startup business. All the major banks in South Africa are among its clients. In its results for the year to 31st March 2024, the company reported revenue up 19% and headline earnings per share (HEPS) up 83%. The company said, "Strong progress arising from new and diversified revenue streams - R123 million investment in future revenue opportunities - Successful integration of the Dariel acquisition - R320 million cash generated from operations, up 75% - Continued growth in the terminal estate, up 9% to 357,000 - Multiple terminal tenders awarded post year-end." The share now trades at a P:E of 8.67. Roughly R1.3 million worth of shares change hands each day, making this share quite feasible for private investors. The company appears to be well-managed, profitable, and cash-flush, which means that it is beginning to attract institutional interest. Technically, the share has been in a downward trend since January 2022, and we advise waiting for a break up through its downward trendline, which does not look like it will happen anytime soon. Overall, Capprec presents a promising investment opportunity with strong financial performance and growth prospects. However, potential investors should monitor the technical trends and wait for a clear upward signal before considering entry.
JSE:CTA
by PDSnetSA
Our opinion on the current state of CAPPREC(CTA)Capprec (CTA) is a fintech company offering payments and payment infrastructure as well as software and services. Patrice Motsepe's African Rainbow Capital (ARC) owns a stake in the company. The payments side of the business is managed through African Resonance and Dashpay, while the software side involves systems development and consulting. The company also owns 17.5% of Resonance Australia, a startup business. Capprec counts all the major banks in South Africa among its clients. In its results for the six months to 30th September 2023, the company reported revenue up 3% and headline earnings per share (HEPS) up 105.6%. The company's net asset value (NAV) increased 3.3% to 124.5c per share. The company said, "Headline earnings growth benefited from a reduction in the expected credit loss raised for GovChat in the reporting period." In a business update for the year to 31st March 2024, the company said, "...increased business activity in the Payments division, improved expense management, and strong cash flows resulted in a robust improvement in the Group's financial performance in the second half of the financial year. Both the Payments and Software divisions have continued to attract new clients, diversify their revenue sources, and grow their market shares." In a trading statement for the year to 31st March 2024, the company estimated that HEPS would increase by between 81% and 84.8%. The company said, "...increased business activity in the Payments division, improved expense management, and strong cash flows resulted in a significant improvement in Capital Appreciation's financial performance in the second half of the financial year." The share now trades at a P:E of 10.76. Roughly R1.3m worth of shares change hands each day, which makes this share quite feasible for private investors. The company appears to be well-managed, profitable, and cash-flush, which means that it is beginning to attract institutional interest. Technically, the share has been in a downward trend since January 2022, and we advise waiting for a break up through its downward trendline, which does not look like it will happen anytime soon. Key Points for Investors: 1. Strong Financial Performance: Significant improvements in HEPS and NAV, indicating robust financial health. 2. Diversified Client Base: Major South African banks as clients and growing market share in both Payments and Software divisions. 3. Institutional Interest: Increasing interest from institutional investors due to the company's strong financial performance and strategic positioning. 4. Technical Analysis: The share is in a downward trend; investors should wait for a clear break above the trendline before considering an investment. Conclusion: Capprec presents a promising investment opportunity due to its strong financial performance, diversified client base, and growing institutional interest. However, investors should be cautious and wait for a clear technical signal before investing. The company's ability to continue attracting new clients and managing expenses effectively will be key to its future growth.
JSE:CTA
by PDSnetSA
Our opinion on the current state of CTACapprec (CTA) is a fintech company offering payments and payment infrastructure, as well as software and services. It counts Patrice Motsepe's African Rainbow Capital (ARC) among its stakeholders. The company's payment services are facilitated through African Resonance and Dashpay, while its software segment involves systems development and consulting. Additionally, Capprec owns a 17.5% stake in Resonance Australia, a startup business. It boasts major South African banks among its clients. In its financial results for the six months ending September 30, 2023, Capprec reported a 3% increase in revenue and a substantial 105.6% surge in headline earnings per share (HEPS). The company's net asset value (NAV) also grew by 3.3% to 124.5 cents per share. Capprec attributed the growth in headline earnings to a reduction in the expected credit loss raised for GovChat during the reporting period. In a business update for the fiscal year ending March 31, 2024, Capprec noted increased business activity in the Payments division, improved expense management, and strong cash flows, resulting in a robust improvement in the group's financial performance in the second half of the financial year. Both the Payments and Software divisions continued to attract new clients, diversify revenue sources, and grow market shares. The share is currently trading at a price-to-earnings (P/E) ratio of 10.67. With an average daily trading volume of roughly R1.3 million worth of shares, Capprec presents a feasible investment opportunity for private investors. The company appears to be well-managed, profitable, and cash-flush, which may attract institutional interest. However, from a technical perspective, the share has been in a downward trend since January 2022. Investors are advised to wait for a break above its downward trendline before considering further investment.
JSE:CTA
by PDSnetSA
Capital Appreciation depreciating to 80centsIf there is one thing to learn with this analysis it's this. Each and every market moves up, down and sideways - Given. But if you scrutinise at the movements and timing you'll see something deeper. That each market has it's own personality, vibe and structure. FOr example, we know with this penny stock the liquidity is low along with the volatility and volume. And since 2021 it's performed similarly. It moves into a Desending triangle, breaks below, consolidates and repeats the process. SO when you see this market, you just know it's Capital Appreciation... Well right now, if history repeats itself, we can expect another Descending triangle along with downside to come. The next target then will be 80 cents. Let's see how it plays out.
JSE:CTAShort
by Timonrosso
Our opinion on the current state of CTACapprec (CTA) is a fintech company offering payments and payment infrastructure as well as software and services. Patrice Motsepe's African Rainbow Capital (ARC) owns a stake. The payments side of the business is done through African Resonance and Dashpay. The software side involves systems development and consulting. The company owns 17,5% of Resonance Australia - a startup business. The company has all the major banks in South Africa as clients. In its results for the six months to 30th September 2023 the company reported revenue up 3% and headline earnings per share (HEPS) up 105,6%. The company's net asset value (NAV) increased 3,3% to 124,5c per share. The company said, "Headline earnings growth benefited from a reduction in the expected credit loss raised for GovChat in the reporting period." The share now trades at a P:E of 16,13 because of the substantial loss provision made. Roughly R700 000 worth of shares change hands each day - which makes this share quite feasible for private investors. The company appears to be well-managed, profitable, and cash-flush - which means that it is beginning to attract institutional interest. Technically, the share has been in an downward trend since January 2022 and we advise waiting for a break up through its downward trendline.
JSE:CTA
by PDSnetSA
Our opinion on the current state of CTACapprec (CTA) is a fintech company offering payments and payment infrastructure as well as software and services. Patrice Motsepe's African Rainbow Capital (ARC) owns a stake. The payments side of the business is done through African Resonance and Dashpay. The software side involves systems development and consulting. The company owns 17,5% of Resonance Australia - a startup business. The company has all the major banks in South Africa as clients. In its results for the year to 31st March 2023 the company reported revenue up 19,7% and headline earnings per share (HEPS) down 44,5%. The company said, "Continued growth in terminal estate, up 18% to 328 000 - Strong growth in Payments' annuity income, up 24.1% - Expected credit loss provision raised of R70.8 million for loan to associate, GovChat, impacted on EPS and HEPS". In a business update for the six months to 30th September 2023 the company reported, "There has also been a tendency to prolong the productive life of customers’ payment terminal fleets and defer capital expenditure into future periods. Despite these headwinds, the Group is strategically well-positioned in a growing market and has made good progress in gaining new customers, diversifying its revenue streams and increasing its market share". In a trading statement for the six months to 30th September 2023 the company estimated that HEPS would increase by between 103,8% and 107,9%. The company said, "The GovChat expected credit loss raised of R56.3 million in the prior period, compared to only R9.4 million in the current period, has contributed to the increase in comparable earnings". The share now trades at a P:E of 15,99 because of the substantial loss provision made. Roughly R500 000 worth of shares change hands each day - which makes this share quite feasible for private investors. The company appears to be well-managed, profitable, and cash-flush - which means that it is beginning to attract institutional interest. Technically, the share has been in an downward trend since January 2022 and we advise waiting for a break up through its downward trendline.
JSE:CTA
by PDSnetSA
Our opinion on the current state of CTACapprec (CTA) is a fintech company offering payments and payment infrastructure as well as software and services. Patrice Motsepe's African Rainbow Capital (ARC) owns a stake. The payments side of the business is done through African Resonance and Dashpay. The software side involves systems development and consulting. The company owns 17,5% of Resonance Australia - a startup business. The company has all the major banks in South Africa as clients. In its results for the year to 31st March 2023 the company reported revenue up 19,7% and headline earnings per share (HEPS) down 44,5%. The company said, "Continued growth in terminal estate, up 18% to 328 000 - Strong growth in Payments' annuity income, up 24.1% - Expected credit loss provision raised of R70.8 million for loan to associate, GovChat, impacted on EPS and HEPS". In a business update for the six months to 30th September 2023 the company reported, "There has also been a tendency to prolong the productive life of customers’ payment terminal fleets and defer capital expenditure into future periods. Despite these headwinds, the Group is strategically well-positioned in a growing market and has made good progress in gaining new customers, diversifying its revenue streams and increasing its market share". The share now trades at a P:E of 18,82 because of the substantial loss provision made. Roughly R500 000 worth of shares change hands each day - which makes this share quite feasible for private investors. The company appears to be well-managed, profitable, and cash-flush - which means that it is beginning to attract institutional interest. Technically, the share has been in an downward trend since January 2022 and we advie waiting for a break up through its downward trendline.
JSE:CTA
by PDSnetSA