Sasfin (SFN) is a banking group that focuses on providing various financial services tailored for small businesses and high net-worth individuals. Established in 1987 and listed on the JSE, Sasfin has been actively investing in its digital platforms and pursuing strategic acquisitions to enhance its offerings.
Despite its efforts, Sasfin's share price had been on a downward trend, prompting investors to await a clear signal of a turnaround, such as an upside break through its long-term trendline. While the impact of COVID-19 hindered this recovery, there have been indications of improvement in the share's performance.
A notable development occurred on October 16, 2023, when Sasfin announced its agreement to dispose of its capital equipment finance and commercial property finance businesses to African Bank Limited, leading to a sharp rise in the share price.
However, on February 27, 2024, Sasfin faced a setback as it received a civil summons from the South African Revenue Services (SARS) for a significant damages claim related to alleged tax liabilities of former foreign exchange clients.
In its financial results for the six months ending December 31, 2023, Sasfin reported a notable decline in headline earnings per share (HEPS), down by 62.39%. This decline was attributed to negative adjustments to the group's fair value loans and private equity portfolio, along with increased credit impairments, reflecting the challenging economic environment for businesses in South Africa.
Despite these challenges, Sasfin managed to achieve a modest increase in its net asset value (NAV) by 4.09% to 5191 cents per share.
It's worth noting that Sasfin's shares are thinly traded, with relatively low liquidity, as indicated by an average daily trading volume of about R110,000. This limited liquidity may impact the accessibility of the stock for individual investors.
In summary, Sasfin faces various challenges, including legal disputes and economic headwinds, which have influenced its financial performance and share price dynamics. Investors should carefully monitor developments and assess the company's ability to navigate these challenges effectively before considering investment opportunities.
Despite its efforts, Sasfin's share price had been on a downward trend, prompting investors to await a clear signal of a turnaround, such as an upside break through its long-term trendline. While the impact of COVID-19 hindered this recovery, there have been indications of improvement in the share's performance.
A notable development occurred on October 16, 2023, when Sasfin announced its agreement to dispose of its capital equipment finance and commercial property finance businesses to African Bank Limited, leading to a sharp rise in the share price.
However, on February 27, 2024, Sasfin faced a setback as it received a civil summons from the South African Revenue Services (SARS) for a significant damages claim related to alleged tax liabilities of former foreign exchange clients.
In its financial results for the six months ending December 31, 2023, Sasfin reported a notable decline in headline earnings per share (HEPS), down by 62.39%. This decline was attributed to negative adjustments to the group's fair value loans and private equity portfolio, along with increased credit impairments, reflecting the challenging economic environment for businesses in South Africa.
Despite these challenges, Sasfin managed to achieve a modest increase in its net asset value (NAV) by 4.09% to 5191 cents per share.
It's worth noting that Sasfin's shares are thinly traded, with relatively low liquidity, as indicated by an average daily trading volume of about R110,000. This limited liquidity may impact the accessibility of the stock for individual investors.
In summary, Sasfin faces various challenges, including legal disputes and economic headwinds, which have influenced its financial performance and share price dynamics. Investors should carefully monitor developments and assess the company's ability to navigate these challenges effectively before considering investment opportunities.
Top 3 & 4 companies on our winning shares list.
Snapshot: 4/2024
#3 - MIXTEL- MIX- Added 2023-12-28 - 86.44% Gain since added
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Snapshot: 4/2024
#3 - MIXTEL- MIX- Added 2023-12-28 - 86.44% Gain since added
#4 - HARMONY - HAR- Added 2023-11-16 - 70.15% Gain since added
Full list available to PDSnet subscribers only.