Transaction Capital - WeBuyCars Doing Well

There's a stock on the JSE that has managed to overcome tough conditions over the last decade: Transaction Capital. Their biggest assets are SA Taxi and WeBuyCars, which they bought last year. As it turns out, that acquisition was very well-timed.

According to the group's latest results, WeBuyCars increased headline earnings by 58% thanks to a 41% increase in unit sales. Remember that new cars are hard to come by due to Covid-induced bottlenecks, so the second-hand market is thriving. WeBuyCars' finance and insurance division also did very well.

This is not the first time the Transaction Capital team has demonstrated their impeccable timing. They sold their micro-lending business just before African Bank imploded.

We have bought this stock for a few clients over the years who were looking for a quality company that is exposed to the South African consumer. We are happy to purchase them for you too, if you are interested.