Pcf Share Discussion Threads

[topvest] 07/12/2017 19:05

Good luck to you. Lets see if you are still smiling when the wheels fall of the bull market bus. I try to avoid shares that don't pay a reasonable dividend, UNLESS there is a very good reason. Its a good way of avoiding the speculative trash around and sticking to quality.

[netcurtains] 07/12/2017 18:30

topvest: what ever you said was right over my head... I'm definitely a "get rich quick investor" (if 3 years is quick) made an absolute packet (see TRIAD at 11p a few years back - now pays a tiny dividend (came 2nd in the ADVFN share pickers challenge last year) .... And then WEY.....
Like Buses, good shares come in threes....

I've got every confidence in PCF to make me a packet too!

[topvest] 07/12/2017 18:06

I don't agree with you. Better to be seen as a value stock at this point in the cycle. Growth shares are going to slump sometime soon and value will outperform. UIL are a long term investor and not a get rich quick merchant as you appear to be. The dividend policy is rubbish and needs adjustment to get a better valuation here. My holding has a nil cost after selling half after conversion of the convertibles and so I'm happy to hold. I wouldn't buy this on a sub 1% yield as a matter of principle as that is normally a SELL or REDUCE signal to me.

[netcurtains] 07/12/2017 12:24

CC2014. Its not optimism (relative to any other investment in AIM) its pretty much obvious they had a chat with the big investor. This is the deal. Lower dividend but potential rise up 50p (odds on will at least reach 40p as brokers have stuck their necks out already on that figure). Sales going forward are good (they have already told us)..
lock and load!

[cc2014] 07/12/2017 10:29

45p haha. Love your optimism but I agree it will get there in time

As it's fallen back a bit I'm now conflicted. I don't know whether I want it to rise or for the offer to pull back so I can buy some more.

Decisions, decisions.

[netcurtains] 07/12/2017 10:14

Looks like I've been proved right!
The guys have not sold their shares. We should therefore see a rise to 45p over the next few months.

I say this, as if the big holder has not sold and the dividend is small, we can go hell for leather for growth without any bother about big dividends.

This is provably a growth stock.

[netcurtains] 06/12/2017 08:31

forget the divi, 45p here we come!

[graham1ty] 06/12/2017 07:21

Panmure research also now available. Target price 38p. They have introduced a 2020 forecast for the first time £10.9m PBT and 4.2p of earnings.

It is 2019, 2020 onwards that profitability rally ratchets up.

[geraldus] 05/12/2017 21:36

Results about where I expected.Headline eps probably spooked a few bods and divvy policy.Clear strategy and potential good upside so will hold.There is a video of Scott on Proactive today and would have odds on ST mentioning this in the Chronicle. GLA.

[cc2014] 05/12/2017 21:27

But this isn't a bank is it? Well yes I know it is a bank but that's not it's primary purpose. And the company needs to hold a certain amount of capital for regulatory requirements which will need to be bolstered if they meet the aggressive growth forecast, so right now they can't pay out lots of dividends.

I would suggest that having moved the final dividend to 0.19p from 0.1p it opens the way for an interim dividend next year on top of the 0.19p.

Personally I'm not really bothered whether it is dividends or capital growth. It the company delivers we will get both.

[topvest] 05/12/2017 20:58

You are not getting the point. Growth stock or not it can afford much more than a 0.19p dividend which is pathetic and covered about 10 times. With deposits flooding in, they don't need the cash so why not have a sensible dividend policy? Banks are not really growth stocks that don't pay dividends. They are valued based on net asset value, earnings yield and dividend yield. They are falling short on the latter point. The stock will get a better valuation if they paid a real interim and final dividend. Utilico (and myself) will be happy etc. etc. Utilico need income to support their dividend policy. At the moment to me, it points to question marks over their real earnings and quality of business that their dividend payout is so low. It doesn't make sense at all particularly given their promises on dividends a few year's back that have not been delivered. The dividend was even below the derisory broker forecast. Why?
I will be tempted to reduce if this is not sorted.

[netcurtains] 05/12/2017 20:46

well they can bloody well wait for their dividend until after the stock has got to 42p and not a penny before.

[graham1ty] 05/12/2017 20:26

New research on the PCF website. Stockdale still with a target of 42p

[vacendak] 05/12/2017 19:44

I think what topvest is indicating is that UIL Ltd (formerly known as Utilico) are not known to be a charity. They hold PCF through Somers.

Back in the days, they had a good slice of Augean (which they exited in March this year) and they made Augean pay a dividend, growth story or not, they usually start to squeeze after a while. I hold UIL Ltd and enjoy the divi, even if performance has been "a bit meh" for a while now; but they would be the last people I would like to have as a major shareholder were I to run a public company.

As implied by topvest, UIL Ltd usually lends money to their investee companies and like getting convertibles in return. They do that a lot within their own family: Somers, Zeta and small miners. When I say "family", I mean ICM/ICICM/Duncan Saville. PCF is doing well - I read about it from the Somers ARs - but it will most likely be made to return more cash soon, AIM or no AIM. I would not be surprised to hear about special dividends within the next year or so.

[netcurtains] 05/12/2017 19:15

topvest: total piffle. This is a GROWTH STOCK..
No one on this thread buys an AIM share for the dividend - not on this planet any way.

The CHAIRMAN'S STATEMENT IS ALL ABOUT GROWTH.......

DONT INVEST IN AIM IF YOU WANT A FTSE DIVIDEND... I'm mean you're being absurd.

This stock is about GROWTH - AND SHARE PRICE RISES (OR FALLS) - its nothing to do with dividends.

That also goes for the people you mentioned - they would have bought into this for GROWTH

[topvest] 05/12/2017 18:56

Sorry think the dividend policy needs rethinking. It's very poor. Utilico are a major shareholder and need dividend income, so I'm surprised they are not flexing their muscles on this given that their convertible debt is now yielding about 1 % after conversion. It's not good enough.

[stav13] 05/12/2017 11:04

New business originations grew from 74.1 to 84.6 in the last month of the financial year, mostly off the back of business finance. Considering the required change to the consumer division IT platform, with additional automated functionality, and we expect this enhanced platform to go live in the first calendar quarter of 2018.
This strategy is expected to deliver significant portfolio growth which will be complemented by our direct marketing presence in the commercial vehicle market, a drive to increase our levels of repeat and returning customers and an increased digital marketing presence.
Happy to hold.

[cc2014] 05/12/2017 11:02

No new forecasts but there is one tiny nugget in the RNS which talks about improvement in NIM though PCF bank. This is a a change as previously they were going to keep the NIM the same to drive volume to their 2020 target of £350m.

They have kept the volume target and said they are going to improve the NIM so I see this as effectively management upping the forecast.

The improvement in dividend is telling too. Takes it to around 0.7% which while poor is going in the right direction and shows increasing credibility. I suggest and I have no basis for this that it also moves us closer to a potential interim dividend next year.


One last word from me. Scott isn't chucking out lots of newsflow on this. It's more a kind of I've laid out the plan and it will be gradually delivered and we don't need to shout about it and we'd rather under-promise and over-deliver. However much I'd like to see this immediately move up to 50p, regrettably I think it more likely it will just gradually move up over time as the plan gets delivered.

Happy to wait - I don't think there are many opportunities as good as this out there.

[graham1ty] 05/12/2017 10:38

A bit disappointing this share price fall. Has anyone seen new forecasts ?

[netcurtains] 05/12/2017 10:21

Exactly CC2014 - at long last someone here on the same page as me!
Get rid of them then double up for the ride up!

[cc2014] 05/12/2017 10:04

Unfortunately today is the day PFG get investigated for car loans



Need to get rid of these investors who don't appreciate PCF isn't lending to these sorts of clients.

[dan_the_epic] 05/12/2017 10:01

Laughably bad response.

Nowhere did I say the Chairman is lying. Didn't even mention the chairman.

[netcurtains] 05/12/2017 09:08

DTE: Give me something to compare PCF's PE ratio is you are so clever??? Or perhaps you are not so clever.... anyway if it was down to brains then how come school teachers are not loaded? My point is you are being facetious because you are giving problems not solutions.

To my mind, just reading the statement and TRUSTING the writers to be decent human beings this is the TRUTH:


Tim Franklin, Chairman, commented: "This has been a year of significant achievement, marked by our successful arrival as a new entrant bank. These strong results are underpinned by excellent organic portfolio growth and a record low impairment rate. The quality of our portfolio and the operational platform we have built provides the ideal foundation to deliver on a strategy of accelerated growth through expansion within our existing lending markets and asset diversification through acquisition."

"We look to the year ahead with confidence in PCF's ability to deliver profitable and sustainable growth."


I think the Chairman is being honest. You appear to think he is lying.

Invest if you trust the chairman. If the Chairman is right then 40p and 50p seems quite likely.

(yeah I know who marked me down - you cant hide you actions)

[che7win] 05/12/2017 09:06

PCF ratio nowhere near 12.2 - but I'm happy with results.

Agree with Graham - I did hope for more of an update on current trading figs.

[dan_the_epic] 05/12/2017 08:59

And that's why A) you don't use ADVFN for financials data, and B) you don't compare this to HSBC on a PE multiple (weak metric for banks)