||EPS - Basic
||Market Cap (m)
|Orchard Funding Daily Update: Orchard Funding is listed in the General Financial sector of the London Stock Exchange with ticker ORCH. The last closing price for Orchard Funding was 85p.|
Orchard Funding has a 4 week average price of 86.45p and a 12 week average price of 86.11p.
The 1 year high share price is 119.50p while the 1 year low share price is currently 81.50p.
There are currently 20,398,001 shares in issue and the average daily traded volume is 19,636 shares. The market capitalisation of Orchard Funding is £17,338,300.85.
|topvest: Keeping a low profile this company. I've doubled-up.
Key points, both pro's and cons:
1. Disappointment after last year's profit warning still hanging over the shares. They have binned their advisor and appointed another with more realistic expectations (probably taken the view that it is better to have lower expectations and out-perform rather than making the same mistake again).
2. Think the prospects look good medium term though, so good time to buy on a 2 year view?
3. Stockopedia rank is very low, but its distorted by the cash outflow common to many banking stocks as they grow their debtor book. The score for banking stocks is just not valid.
4. Low risk lender - never, yes never, had a default (or an overdue).
5. Lots of market share to go for as miles behind the two market leaders. Are they a nimbler competitor?
6. Fin tech Orchard Lending Club launch not factored into the rating - could be a winner and seems to have started well and getting traction on deposits which will give them another funding source.
7. Ravi Takhar looks an "intelligent fanatic" - get in early!
8. Company is illiquid and not particularly well owned by institutions. Always good news for multi-bag gains a few years out.
9. July 2017 expectations have been wound right back to 20% growth on the base year. Looks pretty easy to beat given the Q4 lending book was up 22% and sales momentum is only just starting to get going following recent appointments.
10. Downside is that the price is likely to take a year or two to recover fully from the disappointment of not getting anywhere near the original 2016 expectations.
11. Share price is not incredibly cheap at 14 time forward earnings, 3% yield and a 50% premium on net asset value.
12 Finally their margins have dramatically improved given their ability to source lower cost funding.
Overall, for me its a potential multi-bagger over 5 years. Could go a little lower in the short term. Reasonable margin of safety as net assets are about 58p (i.e. 35% downside). Well positioned to do well in the medium term. Happy to hold long-term and see how they do. It seems to me that they are quite well positioned to build a £100m business over that time period with steady growth using their conservative funding model.|
Orchard Funding share price data is direct from the London Stock Exchange