Philip Short

Views are my own

[Philip Short @VoxPopAlpha]

Capitec Connect (CC): there is a global silent war btw banks and telcos to win the end customer. The mobile device is a natural channel for consumer financial services. And the cornerstone of a banks offering for clients is processing payments. Telcos are trying to move into

[Philip Short @VoxPopAlpha]

Minutes growing > subs growth indicative of Connect users making Connect their primary sim card

[Philip Short @VoxPopAlpha]

Nice to see the growth still accelerating for Connect (Cell C) and VAS ($JSEBLU) at Capitec
#cellc
#capitecconnect
#bluelabel

[Philip Short @VoxPopAlpha]

With subs, voice and data all growing

[Philip Short @VoxPopAlpha]

And fantastic offerings that incentivize further growth (free Connect to Connect calling), handset financing = free 5GB for a year.

[Philip Short @VoxPopAlpha]

@davideborall Great performance, Dave.

[Philip Short @VoxPopAlpha]

@hazelwood_dave @Siddels1000 It’s easy to make a bear/base/bull case for any stock. You called it a sell at R3, which is fine. We all get calls wrong. My view is that your aim then was to purposefully talk the stock down. So be it. As for my R20bn Cell C call, it is bold, and I still stand by it.

[Philip Short @VoxPopAlpha]

@hazelwood_dave you keen for the bet, along with @Siddels1000 ? Choose your best performing SA Inc stock over 1. 3, and 5 years. Starting on Cell C listing date. Loser pays for lunch for the 3 of us.

[Philip Short @VoxPopAlpha]

@Siddels1000 Winner takes the other for lunch after each year end period event, starting from Cell C listing date: 1, 3, and 5 year period. Measured in total return. Has to be an SA Inc stocks

[Philip Short @VoxPopAlpha]

@cjpraat If this is Cy, then that’s disappointing. He would know better. As professionals we all speak to media and at conferences about our holdings. I’ve spoken numerous times about many stocks we’ve held, as has he. As does AG, Coro, 91, etc.

[Philip Short @VoxPopAlpha]

@Luiz1398 @cjpraat Already made 3x in 2 years, and still going. What have you done?

[Philip Short @VoxPopAlpha]

@cjpraat Choose a SA Inc stock that will outperform Cell C over 3 years. Starting today.

[Philip Short @VoxPopAlpha]

@cjpraat Are you illiterate? I’ve already made clients great money on that call. And I plan to make some more, as my view has not changed. This is not the end. You are a social media bagpipe with no skin in the game. So let’s change that 1/2

[Philip Short @VoxPopAlpha]

@hazelwood_dave You have pricing, effective pricing, and service. For eg, Capitec Connect is not the cheapest by any measure but they chip in free data here & there, lowering effective pricing. And they subsidize with banking offerings, which VOD can’t. It’s not a linear/traditional competition

[Philip Short @VoxPopAlpha]

@Siddels1000 Winner takes the other for lunch after each year end period event, starting from Cell C listing date: 1, 3, and 5 year period. Measured in total return. Has to be an SA Inc stocks

[Philip Short @VoxPopAlpha]

@Siddels1000 Winner takes the other for lunch after each year end period event, starting from Cell C listing date: 1, 3, and 5 year period. Measured in total return. Has to be an SA Inc stocks

[Philip Short @VoxPopAlpha]

@Siddels1000 @Siddels1000 what is your top pick SA Inc stock, Syd, over the next 1, 3, and 5 years? For fun, no animosity.
I bet Cell C will have a better chance beating your choice over those periods than any stock you choose, given its starting point at R9bn.

[Philip Short @VoxPopAlpha]

@CapOnePartners @WhitburnPaul Cell C have lower EBITDA margins but better ROICs, which is what will ultimately drive multiple over the coming years, IMO. Cell C at 20% (excl the reported 69% which has CEC) vs VOD’s 14% and MTN’s 3% (per Bloomberg). Also no FX or country risk.

[Philip Short @VoxPopAlpha]

R18bn Cell C valuation * 93% BLU ownership / 900m BLU shares outstanding = R18.60/BLU share from Cell C alone. And then core BLU, ex Cell C and CEC, has ~R700m+ NPAT

[Philip Short @VoxPopAlpha]

@CapOnePartners I agree with @WhitburnPaul Majority want to see proof, ie listing happening. Resuming dividends, due to PTSD, but worth noting that Blu was R3 2 years ago when we bought. So 4x since then with still a lot of hate. Happy to see next 6 months unfold 1/n