1.856m print at 40.5p
Come on show us more....lets clear the plonkers out |
Macro is obviously the key risk. Defaults, lower demand for discretionary spend. Finance companies typically rate well below TBV so don't expect too many fireworks although its a great one to tuck away IMO. Target to double by 2028 which is a nice 3 year 25percent CAGR! Happy holder albeit not from the recent lows. |
Is this the best one way bet ever?
Amazed it’s still so low. And given the substantial share buy back, well, it’s an obvious no brainer
Key risks anyone? |
Taken from SCSW May 2024, a comprehensive list, I followed in on this write up.
They lend on recreational vehicles, marine, motorcycles, music, bicycles, commercial (agricultural equipment) and transport (HGV, LCV, Buses but not cars) sectors. The brands include Willerby, Prestige & Homeseeker, Swift, Bailey Caravans, Triumph |
There are two new RNS's this morning.
Both are most excellent news for holders.
The lowest ASK now on show is 42p
NAV at DFCH is not less than 63p.
f. |
I have just seen this morning’s news and I am new to this company. I am currently invested in STB, where there is major concern over their personal vehicle finance lending, due to possible major compensation claims.
I have read the main points of the 2023 annual report of this company, but cannot ascertain if they deal in vehicle finance in the same way as STB.
Before I invest here, I would be grateful if any existing holders could enlighten me in this area of lending? |
Interesting.
Someone has just paid through the offer at 38p. There was a shed load of shares available at 37p.
Persistent buying since that tip has helped.
The market has been having a good at chomping through the sellers - all kinds of prints have hit the book. It has culminated in some sizeable blocks being mopped up after hours yesterday of 875k, 255k and a 100k at 36p.
Are sellers done at 37p?
If the offer moves to 38p, have to see how many are available. Is it an all out type clearance for a pop higher or is it a slow boring one.
All imo
DYOR |
Tipped.
Looks like Joanne Hart might cause a breakout here:
"These are the four up-and-coming British companies I recommend investing in for real rewards next year and beyond, by shares guru JOANNE HART"
Big stream of buying coming in - easy to spot.
I have joined in.
All imo
DYOR
UPDATE16:45 Guru Joanne Hart has got some clout. This would have traded pretty much nothing without her tip and it has traded 766k without delayed prints. There aren't many about nowadays who can cause that type of activity. The effect of most has faded substantially with prior market movers no longer able to. Have to give it a whirl if someone like that tips it just in case it does run away, but unfortunately it hasn't so those sellers highlighted in earlier posts are still working in the market. It looks a straightforward hold until some whoppers hit or maybe more good news updates to follow. |
 So those two funds buying in size at 30p (see post above) have made a good call here. A tidy update with upside momentum and a cheap valuation. However, they didn't bid the price up beyond 31p.
After picking those blocks up at 30p, the price just sat at 31p-33p, and nothing happened. Sometimes a big enough clear out results in that bid continually moving higher and small buys moving the offer. Then it becomes a nice chart to ride.
Today there are streams of sellers hitting the book e.g.the four lots of 50k @ 37p, so the sellers are still in the market, and gradually selling into this rise with the price going from over 40p down to 37p currently.
It looks like it might keep going lower from here as the bid at 36p doesn't look strong right now, but with this update (and indeed the continued business momentum), it has to be worth a viewing to see where those big buyers are now sat. Is it 32p-34p? Surely they and any others might chomp through the sellers working the market right now to give this a chance of a sustained pop higher.
So watching in to see where the price moves to and if any whoppers hit the book.
All imo
DYOR |
Thank you, a New thread was needed!
Very much under the radar this stock is!
Excellent news this morning, Well done all holders |
New thread with charts and news |
!FOLLOWFEED |
Brilliant Results, Profit up 4 fold. |
Big buyer has popped up here at 30p picking up 4.48m.
Any more for any more?
UPDATE 15/11 16:50: Delayed prints yesterday took volume to over 8m. RNS out to confirm that there are two funds buying here recently. They have bid the price up to 31p after clearing sellers at 30p. It looks like a gradual bid higher to see if any more sellers are out there. If not, then it could break out. It looks like at least two mahoosive block buyers are needed to get any bullish optimism going nowadays. Dire markets. |
To clarify - grow from retained earnings meaning that they have both the funding to make new loans and then will still maintain a constant leverage ratio from retaining earnings and increasing equity |
I agree that the potential growth looks good. It also looks like it will all be funded from retained earnings which I like. Solid niche in its lending markets and reviews of the deposit accounts are positive. To your point on management though I find it concerning the CFO left. The CEO has the vision and can likely execute this growth plan, but in such a small business the people are very important. I was ready to take a position and then the CFO left which now has me thinking maybe it's just too much of an unknown who replaces him. I think the rationale given for him leaving is fair and probably exactly the situation. I also recognise he will stay on for a bit. But the CFO is pretty important to a bank so the replacement seems like a risk. |
Hi SrcgStill holding a big position here. Thought the interim results and Q3 trading updates were pretty impressive. Also watched the results webinar and I've been pretty impressed by management. They're targeting decent growth rates over the next few years, and combined with the lowly current valuation, makes this a very high conviction investment for me. I'd welcome any other opinions or thoughts. |
Hey joeyjojo1826
Same sentiment here - invested recently not a big position in my portfolio yet but bought in just above 31p - simply because it looks undervalued at present.
Should be trading a lot higher than where it’s sitting at present imo.
Been on my watch list a little while but only bought in recently. Can’t see it lower than present but if it does dip below 28p I will certainly be adding to my position |
Came into these on the back of SCSW big write up for May. Colorful history, niche business model, worth a small holding but not added since. |
Always looks lowly rated. My fear for them is that a lot of their customers are quite weak business which easily get blown off course by external events or poor management. |
DFCH looks great value. P/TBV around 0.5 and PE of about 5. Good growth in lending and loan book should see profits rise over the next few years too. Liberum have 14m pbt pencilled in for this year for earnings of 5.6 p/share. This includes a one off gain of 1.7m that was previously written off. Including this 1.7m one-off profit, they've done 9m in H1.They should do at least 7.3m in H2, for 16.3m for the full year, or approx 6.5p/share. Adjusting out the one-off gain, I get about 5.8p/share.Looking at the pretty decent growth rate, it wouldn't be unreasonable to value the company on a PE of 10 or somewhere closer to P/TBV of 1. I've been a buyer over the last few weeks to build up a decent position. Anyone else got an opinion on the valuation/prospects here? |
Look at those pre market buys huge trades |
What a lovely update, delighted with that!
We should see a major re-rate here, this is way too cheap in my opinion |
Trading update for six months ended 30 June 2024
Continued momentum with full year results now expected to be significantly ahead of market expectations
The Group has continued to see strong momentum during the period with new loan origination exceeding a record £709m, up c17% on the prior year (H1 2023: £607m).
The Group's loan book at 30 June 2024 reached £600m, up c16% on the prior year (H1 2023: £519m)
Given the Company's strong underlying operational and financial momentum and the financial recovery in relation to RoyaleLife, the Group expects to report a pre-tax profit for the six month ended 30 June 2024 of no less than £9.0m, which is significantly ahead of its expectations and more than the entire FY23 outturn of £4.6m. Accordingly, the Group expects its full year outturn for 2024 to significantly exceed market expectations. |
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