FXL Flexigroup

[t.rexjr]

FXL down big time at open... even at current price of $1.60, trading at a PE of just 6.6 (yes, six point six!)... yet has grown profit every year since listing... if you think SUM other stocks have been hit a bit harder than they should have, look no further than FXL!
Likely due to tax loss selling, and (hopefully) not related to this Thursday's update... tempting to go into an xxxl position
(the 8 - 9 or so cent dividend likely to pay this full year is attractive in itself... regardless of the stupidly low PE)

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!

[dela47]

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!

Do others know something we don't about Thursday's announcement? Seems too irrational otherwise doesn't it...?

[winner69]

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

[trader_jackson]

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

[trader_jackson]

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

https://hotcopper.com.au/resources/a.../#.WUdwg7puLvQ

"Australia stocks lifted by financials..."
You wouldn't have thought this was the case with flexi dropping like a stone?

Also saw consumer confidence in NZ, which now represents 40% of FXL's profit, is looking pretty good... you would have thought this would have helped the share price?

Crazy times

[winner69]

So they had a bit if profit downgrade last month

From Cash NPAT range of $90m to $97m down to $90m to $93m .....(last year $97m so less this year!)

Is this correct t_j?

Just assessing how much a bargain this

[trader_jackson]

So they had a bit if profit downgrade last month

From Cash NPAT range of $90m to $97m down to $90m to $93m .....(last year $97m so less this year!)

Is this correct t_j?

Just assessing how much a bargain this

Yes, with 2m of that due to a timing of cash flow (this was mentioned this could occur which is why they gave the large 90 to 97 indication)

First half 17 profit was up 18%, although on a per share basis was up 2%... you wouldn't think that because the share price is at a 5 year low although must be a weak 2nd half because if they were to produce another 47.5m that would be above their indication (being $95m) and that would mean a PE 6.3, nearly to good to be true for a so called (or at least previously called) growth company and former market darling.

Yes it will be lower than last year due to 9m (now 11m due to extra 2m of as mentioned above) in growth initiatives, not (really) because their divisions are all going backwards (see below screenshot)... chances are, 'underlying' profit is likely to hit another record (hopefully well over 100m)... Flexi afterall is meant to be a growth company, hence the recently reduced payout ratio (of 30 - 50%)... crazy in 2013, when the share price was nearly $5, FXL traded on a PE of over 20 and had a 1.3b market cap

Attachment 8920

[macduffy]

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.