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Originally Posted by dela47
Do others know something we don't about Thursday's announcement? Seems too irrational otherwise doesn't it...?
Maybe all this talk of sn impending recession and the high household debt levels of Australian households is putting the jitters into the likes of Flexigroup
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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Originally Posted by winner69
Maybe all this talk of sn impending recession and the high household debt levels of Australian households is putting the jitters into the likes of Flexigroup
You would have thought that other financials would also suffer by 7%, yet nearly all of them are up (banks etc), a very similar company (some say) Thorn Group Limited is down just 1.5%... something doesn't add up, and yes dela47
, I suppose the nightmares of 31 May's announcement (which was meant to be very much one off impacts) last year may also be causing some to jump out at any price
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Originally Posted by t.rexjr
And I thought I did well picking up a parcel at $1.64 a couple of weeks back. Might have to go find some more spare change. It doesn't seem that long ago I was happy to get a small parcel for $2.20. Sometimes the Aussie market baffles me!
The "June tax-loss selling" phenomenon has that effect on a lot of stocks. The tricky bit is to sort out those with the potential to recover once that selling pressure is out of the way.
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Hey TJ, what figures are you using for gearing ratios being conservative?
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Originally Posted by Joshuatree
Hey TJ, what figures are you using for gearing ratios being conservative?
You are probably looking at the 82% figure, as many often do, including like the market itself (extract from page 7, half year report 16)
"FlexiGroup maintains a conservative funding strategy; to retain multiple committed funding facilities for all scale businesses, combined with an active debt capital markets presence. The Group currently has revolving wholesale debt facilities in place with five Australian trading banks, plus numerous institutional investors in its Asset Backed Securities (ABS) program.
At balance sheet date the Group had $2,369.6m of wholesale debt facilities, with $492.3m undrawn and no indications that facilities will not be extended. The majority of the wholesale debt facilities ($1,978.1m) have no bullet repayment on maturity, with outstanding balances repaying in line with receivables and customer loans if availability periods were not to be extended. These facilities are secured against underlying pools of receivables and customer loans. The remaining wholesale debt facilities either have a soft bullet or have sufficient lead time for re-extension when approaching maturity.
The Group’s $187.5m of corporate debt facilities, increased to fund the acquisition of NZ Cards, were drawn to $177.0m at balance date. These facilities are secured by the assets of the Group, and with a maturity
date in 2019."
So really, Flexigroup itself only has $177mm of debt, likely to produce min 90m annual profit (apparently - will see this thursday!)... even with a 'terrible' market cap of less than 600m (more than 2x lower than a couple of years ago) gearing ratios for the group, by any metric, are really very conservative, as they have mentioned, and I believe.
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Originally Posted by trader_jackson
You are probably looking at the 82% figure, as many often do, including like the market itself (extract from page 7, half year report 16)
"FlexiGroup maintains a conservative funding strategy; to retain multiple committed funding facilities for all scale businesses, combined with an active debt capital markets presence. The Group currently has revolving wholesale debt facilities in place with five Australian trading banks, plus numerous institutional investors in its Asset Backed Securities (ABS) program.
At balance sheet date the Group had $2,369.6m of wholesale debt facilities, with $492.3m undrawn and no indications that facilities will not be extended. The majority of the wholesale debt facilities ($1,978.1m) have no bullet repayment on maturity, with outstanding balances repaying in line with receivables and customer loans if availability periods were not to be extended. These facilities are secured against underlying pools of receivables and customer loans. The remaining wholesale debt facilities either have a soft bullet or have sufficient lead time for re-extension when approaching maturity.
The Group’s $187.5m of corporate debt facilities, increased to fund the acquisition of NZ Cards, were drawn to $177.0m at balance date. These facilities are secured by the assets of the Group, and with a maturity
date in 2019."
So really, Flexigroup itself only has $177mm of debt, likely to produce min 90m annual profit (apparently - will see this thursday!)... even with a 'terrible' market cap of less than 600m (more than 2x lower than a couple of years ago) gearing ratios for the group, by any metric, are really very conservative, as they have mentioned, and I believe.
Thanks TJ have shared this around a little; no strong feedback , responses atp;Im feeling cautious as I've been bit before buying "bargains". Mkt seems irrational here.
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Some say the drop from 1.70 to 1.595 ($1.56 at one stage) was due to do a broker downgrade... to $1.85 - market sems to have missed the 8 because it is still actually a premium of over 15% - and to top it all off, the broker that downgraded them still thinks flexi is cheap (at $1.70)
http://www.fool.com.au/2017/06/19/fl...ker-downgrade/
Last edited by trader_jackson; 19-06-2017 at 07:02 PM.
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Some even saying it is now soo ridiculously cheap that it could be taken over... then again the founder has a 25% (yes thats 25 percent, not 2.5 percent) stake in the company (and has not sold a cent despite the share price dropping like a stone) and probably doesn't want it to be seen sold off during a period of ridiculously hard to understand share price weakness
Disclosure: I brought even more at $1.58. FXL is now my largest share holding by quite some way.
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Reminds me of that DOOR's song "Ive been down so goddam long, it looks like up to me"
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Very interesting trading today, another big dive to its lowest since Feb 2011 (yes, well over 6 years) being under $1.55
1H 2011 Basic earnings per share was 9.3 cents, in 1H 2017 it was 12.8 - 38% higher.
Despite financials being generally weak on the asx today, FXL seems to be bucking the trend - volume fairly high again today, although no where near that of yesterday - still another 40 minutes to run over on the asx of course... but the share price seems to be rebounding in spectacular fashion in the past hour or so.
Just 1 more trading day left before thursday's announcement, which, no doubt, will be watched by many.
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