Free Issue No. 01 as of 04.01.2020
The shares of credit broker CEMBRA MONEY BANK had a very good 2019.As of the end of December, the annual performance (price gain plus dividend) was +42%, making CEMBRA MONEY BANK the third best-performing bank share on the Swiss stock exchange. In December, two announced projects and an optimistic analyst report provided additional tailwind.
First, it was announced that CEMBRA MONEY BANK and Lipo plan to issue a credit card.Lipo is one of the five largest Swiss furniture retailers, which means that the number of credit card customers (around 900,000) can be further expanded.The cooperation with Migros Bank, with which a new credit card is also to be launched, is very interesting. Last but not least, CEMBRA MONEY BANK has been placed on the list of favourite shares for 2020 by the Zürcher Kantonalbank (ZKB). The corresponding research paper states that CEMBRA MONEY BANK has a robust capital base and generates a high return on equity.While banks are groaning under the interest rate environment, CEMBRA MONEY BANK is generating a stable and proud interest margin.We pointed this out in the October 31 issue. As of the end of June, average lending rates for personal loans were 8.2%, for vehicle financing 4.9% and for credit cards 7.7%. Loan defaults are also at a very low level of 0.8%. These are truly paradisiacal conditions!
The ZKB also mentions that the stock can benefit from its defensive qualities in the event of market turbulence.Full synergies from the acquisition of Cashgate - a specialist in vehicle leasing and personal loans - from 2021, the from 2021, the development of new customer groups and complementary acquisitions round off the positive assessment. Given the strong share price performance, we would only make new purchases in the CHF 100 range.
We are raising the price target from CHF 110 to CHF 120!
