|Agree fully Maddox. I did not realise Business's still paid circa 20% interest/or lease, for soft assets at an average of £9/£12k per finance deal for average 2 to 3 years. Its is much higher than I thought.
I wish Id asked the question about threat from Funding Circle and such like, or did I miss it?
|An excellent ShareSoc event and company presentations last night. What is far more useful than the opportunity to pose whatever questions you have yourself - it's the insight you gain from the other expert investors' questions. Their penetrating questions highlight areas you probably haven't even thought of.
OPM's Ian Smith stood up to this inquistion extremely well. Although, he was unable to answer the question that's been puzzeling me? Which is to explain why their share price has tracked sideways despite their strong results. Nothing was revealed that might give cause for concern.
|Ron's buying more @ 67p|
|A positive update from Private and Commercial today which should be a good read across Http://www.investegate.co.uk/private---38--comm--fin---pcf-/rns/trading-statement/201604140700071363V/
OPM are presenting next Tuesday at Sharesoc Http://www.sharesoc.org/seminarapr2016.html|
Just signed up for the ShareSoc seminar and really looking forward to meeting 1PM's management. 1PM appears to be trading very strongly:
'Commenting on the acquisition and current trading, Chairman John Newman, added:
“1pm’s trading performance in the first nine months of the current financial year, which includes a six month, contribution from Academy Leasing, continues to be strong and in line with management expectations for the financial year ending on 31 May 2016, This latest acquisition will help to enhance the trend of profitable growth delivered over recent years.”'
So with only a couple of months to go to the year-end it appears that a really good set of results are in prospect. We'll probably also get some further confirmation of this on the 19th. Its a great opportunity to judge the mood of the Directors - but the fact that they've made two acquisitions suggests that their confidence is high.
See you on the 19th,
|Yes probably a little unrealistic to have got to 80p.
IMHO the biggest issue facing OPM, now seemingly solved, was that funding its growth, and the previous acquisition, required discounted equity placings. These made it impossible for any EPS growth to be translated into improvements in the share price
Unfortunately, it was not at all apparent from RNSes, other than those associated with raising equity funds, that this was a major issue for OPM.
The considerable growth in lending in the last six months or so, and the fact that yesterday's acquisition was also debt funded, suggest that OPM's market credibility means that obtaining debt funding at reasonable rates is no longer an issue.
I would like to think this will be a major catalyst for the share price to start reflecting OPM's operational progress.
All the above IMHO. DYOR.|
|Shanklin....that is a wee bit unfair. The eps has been increasing steadily since Jan 14 and is forecast to be nearly 50% higher than the 2014 numbers when announced in July so I think the rating was probably too high when it got to a share price of 84p in 2014 but it can certainly get back there this year.|
|Just pleased there was not another discounted placing to finance the acquisition. These need to stop until management deliver increased shareholder value, something which has not happened share price wise since Jan-14.|
|Nice bolt on acquisition but no market reaction.
I guess value will eventually out but not today!|
I can exit for b/e again but feel that this is an unfair valuation given the growth I would expect it to be able to trade on a mid teens p/e multiple which would give you a share price of around 84p which is pretty close to WH Ireland estimate.
I guess I will hold for now and see if we get a decent bounce back|
|Sorry Maiken, taken a day or two to get round to this. WHI forecasts are PTP next two years £3m then £4.2m giving eps of 4.9p then 6.3p. They have divis of 0.5p in 2016 and 0.7p in 2017. At today's 56p offered, that is a multiple of 11.4x the year we are in, falling to 8.9x next year.
If you private message me yr email address, I can forward the note to you|
|Thanks Shanklin,would appreciate anything else you can tell us from W H Ireland note,especially forecasts for profits,divs etc.|
|I can only assume that there is a big seller in the background.
Profits have doubled over the last 2 years so there is no logic in the share price being lower than it was then.
The interest rate environment is very stable and no one is projecting it to rise over the next 12 months so I dont buy that argument.
I guess I will continue to hold as I am not ready to realise a substantial loss just yet!|
|FYI, WH Ireland issued a lengthy, and IMHO measured, broker note on 22-Feb-16 with a target price of 87p.
On the subject of bad debts, it states
"Bad debt provisions and write-offs as a percentage of the total lease portfolio have decreased further and are now well below management expectations."
Presumably broker forecasts will take account of management expectations rather than recent bad debt experience.
|Lot of people trying to second guess the price drop.
My guess is nothing is wrong at all, merely selling begets selling.|
|And soon, 2 plus 2 will equal 5... perhaps :-)|
|I keep a watching brief here but no longer hold shares in 1pm.
Cant help but notice the fall today and especially after a presentation to investors.
As discussed above, i wonder if a few bad debts are beginning to creep in, although it might not be enough to really hurt the company.
One potential problem might be access to credit markets. I wonder how liquid these currently are and whether money is getting tighter?|
|I understand from a third party that yesterday's presentation went well. It was recorded so should be available, at least to ShareSoc members, at some point.
P.S. I missed the bottom but did add a few just under 55p.|
|I don't often top up on an original investment but with profits having doubled over the last 2 years and trading on a p/e of about 10 I am sorely tempted.|
|Going by the share price the seminar went well then...|
|Just bought some more at 54.48!!!!|
|Thanks to all for your thoughts on this. Definitely on my watch list...|
|Last chance to get registered for our seminar tomorrow! 1PM will be presenting at our growth company seminar in Altrincham near Manchester tomorrow. Get registered at: hTTp://www.sharesoc.org/altrinchamseminar.html|
|interesting points all well made.Thanks to you all.|
|Hi, agree with Davidosh
One other thing to add, unlike a bank which tends to lend purely on profile scoring - ie; computer say yes - or no, 1PM tends to interview clients and obtain a more informed perspective as to the risk they are taking on, a truly personal service. This would underscore why delinquency is low.
The market 1PM operate in is SME, and from all I read, the demand for finance in this segment is still strong and banks are not stepping up probably because they've moved in the opposite direction from pre 2008, and are now so risk averse they have cut themselves out of a lucrative market.