Manx Financial Share Discussion Threads

[smithie6] 26/3/2024 07:33

Imo nice to see that they are taking a cautious/prudent approach with the new UK, they haven't gone nuts & blown lots of money. Plan to start taking deposits in H2 2024 via on line process.

[smithie6] 26/3/2024 07:30

Yes, results look great. :-)

I note the big improvement in H2 EPS versus H1.

And excellent never ending growth in the loan book. Every year the company gets bigger.

[tongostl] 26/3/2024 07:15

Wow.

No way is the share price staying this low for much longer. A £25m mrkt cap is far to low.

[clocktower] 26/3/2024 07:11

After a brief scan of results, I say very well done CT & S, as they well exceeded expectations even and you should be well rewarded for your belief very soon.

[castleford tiger] 26/3/2024 07:09

Well they look stunning.
21.8% increase in Eps after paying out 50% of PAL

My 10 m profit when we take control looks too low
Nav up to £36 million

More follows

[castleford tiger] 25/3/2024 16:35

The buyers know the numbers in my opinion.
It’s the outlook that excites me.
This last year had all the costs to get the U.K. licence without any profits coming in.
So current year I am expecting a big lift of 1 to 2 million.
Results I am pretty sure are tomorrow.
Market reaction no idea?

[clocktower] 25/3/2024 16:06

Yes S - I think they are hoping to get sells, because if one or two started selling a small number they might get a trader to drop a larger number, whom is still in profit.

[smithie6] 25/3/2024 16:00

...indeed, real price to sell is 22.0p

Any guess as to why they are doing that ?

Because they want to show a massive spread, to scare off any buyers ?, because they want some time to elapse without any more buys, to hopefully get some sells, to fill the numerous sizeable big buys in the last 7 days ?.
Including the £14k buy this morning.

----

Anyway, fingers crossed the results will be published tomorrow & hopefully the market likes the results !

[clocktower] 25/3/2024 14:44

MM are not keen to show the true bid price.

[castleford tiger] 25/3/2024 13:31

Can’t hold this down

[smithie6] 25/3/2024 12:52

.. interesting

That trade today to buy 59k shares @23.95p, = £14k !
...they need the price to sell to go up 14% just to break even !!

They are currently sitting on a £2k loss on that trade ! Clearly they are a believer.

[smithie6] 25/3/2024 11:57

... following on from the large buy trade of 100k shares reported late on Friday

And
60,400 & 49,750 share trades, bought on 20th March, @24p

& 40,000 shares bt on 21st March (Thursday) at 23.5p, 0.5p above the official price to buy.

----
1 or more people with deep pockets have been very keen to pick up a holding; just before results. Fingers crossed they are right to do so. (Although it looks a bit fishy, like insider info)

(>300k shares just for these trades.
Almost £75k
...& there were other repeated buy trades of 20k & 10k shares)

[castleford tiger] 25/3/2024 11:41

Someone is keen today to buy.
Price is 21/23 but paid almost a penny over to buy 59000 shares.
23.95p paid

[smithie6] 25/3/2024 09:56

Stewy
...I guess/assume that PA ltd (& probably MFX) would be a nice acquisition for Klarna and Klarna has a lot of money. Although the majority owners of MFX wouldn't want to sell. But it helps to highlight the low cap. value of MFX for its turnover, subsidiaries, loan book, profit, outlets, clients....

[smithie6] 25/3/2024 09:12

Cloud banking for the general public.

Be interesting to see if MFX does that for its UK licence....as a mass market solution, over time.

If it did then who knows what the valuation might be.
Perhaps MFX would never go mass market in the foreseeable future due to the costs involved. Although I guess that the IoM banking function must provide on-line services to its public clients. So perhaps it wouldn't be that expensive to do that in the UK, & avoid having the costs of branches. (If MFX could replicate it's IoM banking in the UK but without the costs of physical branches, it would be notably more profitable; or perhaps just 1 to start off with (perhaps by appointment only) in sunny Basingstoke). Although it could perhaps start off just with big clients, & expand over time.

I guess we will learn over time how the co. plans to make use of it's UK licence. Not something I have experience in.

[smithie6] 25/3/2024 09:05

...MFX has a profitable part that does foreign exchange

Who knows, perhaps that might grow due to MFX getting the UK banking licence. (noting that MFX can move the deposits of it's UK subsidiaries to be held by it's UK bank; and for subsidiaries MFX can dictate, or promote, who they must use for foreign exchange transactions).

[clocktower] 25/3/2024 07:36

How many businesses are now classified as banks?

60 years ago there were a few more names on the high street, some which were swallowed up by the giants but now we have the reverse occurring but how secure are all these new businesses that have banking licenses?

Now there is competition for the biggest corporations and folks like myself are turning to the new entrepreneurs that are offering fast money transfer and really competitive foreign exchange deals.

[stewy_18] 25/3/2024 07:17

hxxps://paymentexpert.com/2024/03/15/klarna-open-banking-uk/

Not sure of the relevance but interesting article none the less

[smithie6] 24/3/2024 11:35

Info

Late reported trade on Friday.
100k shares at 22.25p, ~£22k.
Big for MFX.
looks like a buy imo.

=========

The number of trades for >£10k over the last 4 weeks in little MFX is impressive imo. Most have been buys imo. Imo some people with deep pockets like MFX shares.

[clocktower] 22/3/2024 17:13

Not long to wait then Smithie6. Good Luck but MTRO is in the dog house but does seem to be turning a new leaf but priced to disappoint at 30p.

Well done with NatWest, they were a steal at 185p and recovered even after the dividend.

[smithie6] 22/3/2024 15:46

...banks are all different....but if the sector rises...then that is good for MFX.

One of the key factors for the banking sector, & the resulting p/e given to the sector, is 'bad debts'.
The markets view on the banking sector & bad debts has improved & continues to improve.

---
"with large sums of dead money sitting in accounts that pay no interest or next to nothing Smithie6."

....banks make a % margin between the interest % paid to depositors & the interest % received from borrower's. Nett % margin

The nett % margin for PA Ltd is understood to be notably higher than for the rest of the business of MFX subsidiaries/associates. And higher than at the big banks that you refer to. The loan book & profit at PA Ltd hace also shown high growth. The PA Ltd loan book is material WRT the MFX loan book. And the directors wrote at the time of the acquisition that it would hopefully be transformational for MFX.

If you prefer to invest in big banks, rather than in MFX here are some ticker codes, BARC, NWG, LLOY, HSBC, TBC.....
(I bought some NatWest at 180-185p, perfect timing, now ~260p. I have sold, .....I put some of the money in to Intercede, since up 25% :-)

My biggest holding is in MFX, I doubled my holding during the price fall in Dec./Jan. I haven't sold any recently. Fingers crossed it could do really well over coming months & years. The growth in turnover, loan book & profit in the last 10 years is very visible in the records.

[clocktower] 22/3/2024 12:17

With respect the major banks have very substantial assets and huge numbers of customers with large sums of dead money sitting in accounts that pay no interest or next to nothing Smithie6.

[smithie6] 22/3/2024 09:40

Btw
Various bank shares are up again today, as the market gets keener on bank shares.

..good news for MFX

[stewy_18] 22/3/2024 09:07

Liquidity is an issue here, but if you take a long term view I think you will do very well. I think the PAL business model is a world beater. It can be (and is being) applied to lots of other businesses and that is why I'm in for the long run.

You just need to look here:-
hxxps://www.payment-assist.co.uk/search?q=Stamford%2C+UK&;distance=20&sector=

I didn't make a note, but last year for the area where I come from, there were only a handful of dealers using PAL, now there are a lot more. You can also see what businesses they are targeting and lots of room for growth.

The business model is really simple, and that's why I like it. Businesses don't want to be chasing up customers, They will pay a premium for PAL to do it. So I'll be really interested in a few key metrics in the results:-

1. Growth for PAL. It was 66% in the interims, I'd like to see what it is for the full year.
2. Overall return on lending for MFX. Smithie mentioned in was about 3% last year. I hope this should move up because the return on PAL loans are about 19%, probably more given the loans are short term.
3. Probably won't be mentioned in the results, but I'd really like to know the cost of lending this money to MFX.

If PAL can maintain that growth curve for the next 4/5 years, I think this will do very well. I really hope they put all their focus into PAL because for me, this is the sweet spot.