|Potential Finance Group
||EPS - Basic
||Market Cap (m)
|Nonequity Investment Instruments
Real-Time news about Potential Fin (London Stock Exchange): 0 recent articles
|pip_uk: Good article in last weeks Money week extolling the virtues of Potash.
This company, POT, has their attention.
A good chance to buy and hold with all the the world mouths to feed in the future.
Put my money where my mouth is, and bought in today.
Share price today looking very strong.
|guru11: irvbox - looked it up on the fast movers today.
cap. at £4.5m, but the question is what is really meant by the above -
"it has traded profitably since the early part of the financial year"
so what net profit can be expected and what could be the eps and pe ratio?
"growth was continuing rapidly"
again this sounds good, but the prospective eps and pe ratio?
Had a look at the interim accounts - made profit of £104k before tax, so
on fundamentals they do look a bit weak, but I am sure higher profits will come through, but in saying this it is very much factored in the current price.
Share price was 160p in 2000, then 120p in 2002, then drifted ever since,
been a bit bumpy since then but recently has been better.
If it is getting it right then today's rise may continue tomorrow.|
|innovation99: Stephanie1 - valid point. POT by there own admission have stated the market for new clients is extremely competitive, and their client base is static. However they have - and this is were I agree with them - decided it is inappropriate to adjust either pricing policy or their acceptable risk levels in order to speed the take on of new business. They will maintain their stringent approval parameters during this economic climate.
Fast pace growth by competitive rate (ie reduce the margins) is a dangerous game. One needs to take into account that Euro Sales Finance was the victim of its own success: it over-stretched its capacity in a desire to meet aggressive European expansion plans. Bye Bye - Euro Sales Finance, £15 a share to zero in the space of 12 months.
Increased Volume at the expense of lower margins do not go hand in hand and often leads to profit loss, cash flow problems etc.
However, the city in this market do not look further than the next set of results and so POT will have its share price marked down accordingly.
I think the share price decrease has been a little overdone. I make that reference as there has been no major sell out. With only 10 million shares on the market and most of them closely held, a bounce is more than likely back to the 70/75p mark.
All that said - yours is a good viewpoint Stephaine.
As for Red Army being short, which boat did he arrive off. A volitile stock with little or no volume is not exactly a stock one would want to go short!|
|jonc: I suspect that their growth is being held back by the banks who in my experience are at the moment falling over each over to lend on almost any proposition. The banks have learned nothing from the early nineties and POT will come into its own when the banks tighten their lending criteria. Thats my theory anyway.
Doesn't help the share price though.
|innovation99: Well there,s a turnup for the books. First of all I called this one wrong! Yes they are in the black which is a real bonus but by their own admission the profits are behind its expectations, and growth is slower than planned because of a revised short-term strategy amid the current economic climate.
Its a hard call to read into what the statement really means. The competition is tough out there and they are not having it all their own way that is for sure. However, I am please that they are still continuing to be prudent in acquiring a small number of clients who are likely to continue to trade in the longer term, rather than be tempted to go for greater volume of more volatile businesses, which could lose them and arm and a leg. Better safe than sorry in this market place.
I have made the decision to hold this stock long term because of my admiration for the prudent management of the company, Though I am dissapointed that the profits did not come in higher that the expections ( I personally thought they would) I admire their reluctance to go for growth at any cost.
Given what I have read in the statement I am unable now to recommend this stock as a "must have" even though I continue to hold. I have always championed this stock but now I see it as one of little downside with plenty of future potential.
I am afraid in this market you cannot state that "we believe we have continued to make significant progress and are in a strong position to maintain that progress in the months to come." You have to deliver exceptional results or you are pushed to one side until you do. Pity really, but that is the reality in this market place.
Of course, I hope I am totally wrong in what I state and that a shrewd investor comes along and scoops up all the overhang. One still has to remember that POT still increased turnover by 65% which in days gone by would have seen their share price double. How times have changed when a 65% increase is viewed as a poor performance.|
|innovation99: GRZ: not many retail investors hold POT, so the interims will bring them out and nudge up the share price. But the quantem leap will not be due to retail investors. What we need to see is some institutions take some interest in them for the long term. With so few shares about the MMs will mark the price up to get what little there is to ensure they keep their institution clients happy. Of course if there is a large requirement there will be a share split which could be very favourable.
Lot of if's! however if not this time round then within 12 months something will have to give if their growth continues as the will need to expand further and so need to establish a higher profile in the marketplace. I can see them going for a full listing in the not so near future.|
|innovation99: Here are some snipbits
Figures from the Factors and Discounters Association ("FDA") demonstrate that its members were providing £6.2 billion in funding at the end of 2000 compared with £4.9 billion the previous year - an increase of 26 percent.
The factoring and invoice discounting industry in the UK is now serving approximately 28,000 businesses and turning over approximately £77
billion per annum.
Now there are three factoring businesses on Aim
Dynamic Commerical Finance
The first two are start ups whilst Potential Finance has mover advantage being two years down the road with a large client base and interest rates set to rise.
I think they will all do well, particulay Dynamic Commerical (in share price!) as it seems to be the darling of the City. Old school tie I guess.|
The answer is NO. I have charted this stock and left a message on this board to JonC on 15th April informing not to rush to buy until close two weeks from the interim results as charts show that the price was liable to level out at 89p where there is support. Now we are there with 5 weeks before interim results.
Little volume is I am afraid the reason for the dip. The half year results will(baring unforseen circumstance) reflect the expected growth and increased profit. I would also like to see in the company report their expansion strategy over the next 5 years. Whilst I know in 2000/1 they saw the next two years as being a period where they would organically grow to build a strong foundation base, I would like to see them express an interest of a gradual expansion into Europe. That would then really get the insitutions and shrewd fund managers interested in buying stock. And with only 10 million shares in circulation, each share could well reach the dizzy heights of £5 to £7.
Charting based on historic and fowarding looking earnings I am reading an increase in mid-point of £1.25 supported at £1..10 with upper limit of up to £1.45 by end of June.
Am I confident? well I chart and follow three stocks of which I have purchased shares in the last 6 months
ABI - paid 50p - present 74p - gain 48%
ITH -paid 9p - present 14p - gain 55%
POT paid 80p - present 90p - gain 11%p
Holding all stocks on a 2 to 3 year outlook because of enormous upside in growth and profit they represent. ABI have moved from high to a low risk overnight, whereas POT is still high risk but may well come of the high risk register by the half yearly results. My lastest purchase ITH is high risk and will remain so for a least 2 years. Although sometimes the higher the risk the greater the return.
I have high expectations for Potential Finanace although I think it will be year 2003/4 before we will see the European Expansion and the share price quantum leap.
Like all factoring business, the unforeseen, a bad debt from a company, can spoil a party overnight butt managed well and it is profit all the way.
|innovation99: Abb064 - not quite correct about "no-one appears to be in at present"
Only last month, Peter Webb picked up a near 900,000 share stake, or 8.6%, in the £10 million company for his Eaglet investment trust (EIN). He purchased these at 90p per share. Also, Brian Watson’s Framlington Innovative Growth investment trust (FIT) holds the stock as do some of the funds run by top manager Alfred Stirling.
I guess in the wider picture this stock is still relatively unknown, so you do have the opportunity to be a shrewd investor by buying in. The retail investor will start to nipple at this stock after the interims, and there may be a possibility that an institution may take a large chuck as its share price should exceed their standard entry mark of 100p per share
Ps - nice to think that I regularly pick winners, but I dont. Only last month I picked up Ambient share at 53p, expecting a upturn, but their accounts are so complex, think retailer investors lost the plot. Shrewd investors still buying as I. But this game is not all about quick wins unless you are a total gambler.|
|innovation99: Th time is drawing nearing to the interims, which given Potential history to date will no doubt be as impressive for a new company. Given the recent funding, the rapid move into profit, should all bode well for a move north in share price.|
Potential Finance share price data is direct from the London Stock Exchange