CAB Payments Holdings plc - CABP

This firm provides business-to-business cross-border payments and foreign exchange, specialising in hard-to-reach markets.

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What does the unlisted bit mean?

For those who may have some interest, the company only came to market this year. Fell 75% yesterday! And more today.

Small company just come to market. Hits the market with a bit of bad news. Share price gets hit extra hard and won’t be easily forgiven.
Maybe worth looking at as recovery stock… maybe!

It’s a way of creating topics and then “enlisting” them so they can’t be found. Often done ahead of a stock being added. Mod accounts can delete those tags with a trash can next to them - makes it tidier

High for the year 315p presently 51p.
Been listed June 2023
Delisted December 2023… joking.
That is one helluva a fall in such a short period of time since listing.
Major problem is the Nigerian niara which has moved to a floating rate…and every other African currency, that’s there excuse.
Could be one helluva recovery share… hopefully not like Cineworld!!

CAB had a wonderful fall and became a really good oportunity. Investors ran away in fear (maybe because JP Morgan had a short on it?) after a 17% drop in earnings forecast and threw the baby, the water, and the whole house.

Since it touched ~50 in October it has been going up slowly, and with some bumps as another company took a large short position (and sold it at a loss).

Today it touched 80p, and I have the impression that it will be above £1 on Q1 next year.

The company has been listed for a short time, but it has been doing business for a very long time, and they are quite profitable too. CAB has a huge advantange as they have been working in Africa for a long time and has fluent contacts with a good number of the central banks in the region. The new goverment in Nigeria was not happy with CAB and many other cross-border payment providers and they closed the faucet to transfer funds even more. This started a couple of years ago (in 2020?) when Nigeria suddently changed the regulations and a lot of remitance companies found not being able to transfer funds. This was really bad for the Nigerian local economy too as the Nigerian diaspora sends a lot of funds back home (more than 4% of their GDP!).

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Cross-border payments and foreign exchange firm CAB Payments celebrated being granted a European licence. Its Dutch unit will be “eligible to provide services across the European Economic Area under the passporting regime”. It added: “This is one of the operational and strategic initiatives that underpin the group’s growth aspirations for 2024 and beyond. CAB Payments is confident that being able to provide services across the EEA will bring significant opportunity for the business and for the clients and the markets it serves. The Dutch licensed firm will be based in The Netherlands and will operate under the name of CAB Payments Europe.”

12% up at the moment.
Down hugely overall.
Correct me if i am wrong the fall was related to an African country devaluation?

Pity i didn’t take my own advice!!

from what i gather Its crash was a massive over reaction to not hitting proffit targets set at the Ipo. Business however seems to be good and wasnt really off track. i got hooked when the risk officer at cab bought 50k. I think it will easy get back to its valuation figure which cant have been that far out last year!

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I’ve been milking CAB since it collapsed in October. The overreaction was not warranted for reducing the growth forecast from 33%(?) to 25%. In my eyes there three reasons for the collapse of SP: 1) On the same day a few other fintechs released reduced profit warnings (WorldLine in france and another company in Italy which I cannot recall now). 2) A few weeks before this JP morgan started a short position which made a people nervous. 3) A very small float of shares, so anyone buying or selling £200k would make the price fluctuate by 10%, and I have the feeling the initial drop triggered a bunch of stop losses and created a cascade.

After the collapse, a big fund had to drop their stake stake in CAB. This kept the price low for a couple of months while the fund offloaded their position.

Dealing with emerging/developing economies is risky, but CAB understand this and been on it for decades. They also work closely with the central banks of some African countries.

I don’t think the drop of the Naira hit them, but the restrictions that Nigeria is putting to access foreign currency. Also the Nigerian goverment is trying as hard to put blame in something external. Recently the gorvement arrested 2 people from Binance, claiming that cryptocurrencies had been to blame for the drop in the Naira.

I think the price will recover to around £2.20 in the next 6-12 months and the recovery to IPO levels will take a while.