Morses Club Share Discussion Threads

[battlebus2] 22/6/2017 09:05

Yes even that, looks like bad management to means like you say no real relationship to what's happening at MCL.

[masurenguy] 22/6/2017 08:55

This mornings 5% fall is almost certainly triggered by last nights awful PF results. In fact those PF results appear to be more related to a poor and misguided marketing strategy than any weakness in the sector. The knock on effect upon the MCL shareprice could represent a good top up opportunity since they should directly benefit from the woes at PF.

Doorstep lender Provident Financial left out in the cold after shake-up slashes profits

Shares in Provident Financial suffered their greatest fall in nearly 30 years yesterday as the sub-prime lender issued a profit warning on the back of a disastrous attempt to reform the way its staff make and collect loans. Provident shares lost as much as a fifth of their value, ending the day down 504p, or 17.6%, at £23.61, wiping more than £700m off its stock market value after it revealed that profits for the first half of year would be nearly 50% weaker compared with the same period in 2016.

Job vacancy rates are running at more than twice the level the group had predicted when it began an overhaul of its doorstep lending operation, which is expected to cut the number of collection agents from 4,500 to 2,500. In a statement to the market late on Tuesday, Provident warned that profits from its consumer credit division, which makes small doorstep loans to hundreds of thousands of customers across the country, would be about £60m in the first half, down from £115m for the same period in 2016.

Its business model has survived wars, depressions and everything between. Everything, that is, but the latest manoeuvrings of management, who want to drastically cut the number of agents, turning them from a part-time workforce into full-time loan-makers. With agent numbers set to drop from 4,500 to 2,500, Provident has been hit by staff defecting to rivals and taking their valuable contact books with them. This has both hampered collections of debts and disrupted sales of new loans. There is evidence that agents have gone to work for direct competitors, such as Non-Standard Finance, which was founded by John van Kuffeler, Provident’s former chief executive and chairman for 22 years until he left in 2013, as well as Morses Club.

Links to complete articles below:

[battlebus2] 20/6/2017 10:15

Encouraging will do for me.

[santangello] 20/6/2017 09:23

Can't beat a positive T/S mmmm

[santangello] 18/6/2017 23:09

......certainly has that look/feel jitters, retracing nicely.

My chart buddy (charts which I personally do not use as a rule) tells me the share price looks to rise strongly from the 125p base level....

.....we'll see ?

[jitters3] 16/6/2017 12:32

Is that the seller finished

[santangello] 25/5/2017 17:27

Well worth a read imho.

[essential] 10/5/2017 09:02

Buys showing as sells this morning

[battlebus2] 09/5/2017 15:37

Hopefully yump...

[yump] 09/5/2017 15:36

Looks like 110-130 range might be gone soon.

[santangello] 09/5/2017 09:32

....DTY and CVSG performing well for me too...

[santangello] 09/5/2017 09:30

Indeed....adding here, RNWH, XLM and WJG at present....powering ahead :)

[battlebus2] 08/5/2017 17:44

That's a pretty confident sounding portfolio there Santangello 👍

[yump] 08/5/2017 16:43

Looks like it might do another jump...

[santangello] 08/5/2017 15:08

Many thanks GHF.I have added to my maiden purchase earlier, and very happy to add to my ever growing, successful Portfolio.

[glasshalfull] 07/5/2017 10:59

MCL

Positive news on Thursday.

I recently provided Numis forecasts & update (post 48) & following full FCA authorisation they reaffirmed their positive stance and buy rating this week.

I continue to top up my holding here & think MCL looks excellent value in comparison to the 2 main peers in its Home Credit sector, namely Provident (the no. 1) and Non-Standard Finance (NSF).

It offers a higher yield than both, while on a lower forecast PER of 11 in the current year. As Numis mention below, it has exceptionally low leverage in comparison to peers & I would expect both MCL & NSF to benefit from PFG's repositioning in the Home Credit market.

Stock - o - pedia agrees and I see its stock rank has risen to 94 and described as a "super stock" in their new ratings.

Numis update this week,

"Morses Club have announced that they have received full authorisation from the FCA. While we always believed that this would happen we see the significance being that full authorisation will enhance their ability to secure additional bank funding.

This will be important as they see a significant growth opportunity with the restructuring that Provident is currently undertaking.

Morses Club is being valued at 11.3x this year's earnings, 9.7x next and has an attractive 5.4% dividend yield.

We believe that the Morses Club business justifies a premium valuation to the specialist lenders sub-sector.

and

"....continuing to expand its customer reach and product set, thus taking market share in the highest margin segments of the non-standard market. Morses Club is a very high return business, achieving a 29% ROAE last year with by far the lowest leverage (the CET1 ratio was 84.1%) of any of the specialist lenders. Low leverage combined with high margins makes Morses Club a low risk lender as well as a high return lender.

High returns are better able to fund growth and provide a greater dividend paying capacity for any given level of growth."

Kind regards,
GHF

[yump] 04/5/2017 07:21

Very good news indeed.

[battlebus2] 04/5/2017 07:13

Excellent news with full FCA authorisation

[yump] 02/5/2017 09:00

o/t but it would be nice, although unlikely as it requires forethought, if at least someone in government or 'opposition' would mention something about the structural risks to jobs that exists. I guess they don't want to frighten people into reduced spending. Not that most would take any notice. We have new cars in our road each week. Perhaps in 5 years time, parking will be easier after all the repossessions.

Sorry, just a bit gloomy this morning as keep reading about the real world.

[battlebus2] 30/4/2017 11:24

That's a risk ofcourse but we seem to be running well within current guidelines. Any new regulations may only be helpful to the likes of MCL long term.

[spoole5] 30/4/2017 09:36

Having a close look at this one, the only thing that worries me is potential regulatory intervention.

[battlebus2] 30/4/2017 00:07

Very true tump, credit cards and pay day loans take up growing at extreme rates which doesn't bode well.

[yump] 29/4/2017 12:38

battlebus2
Thanks for those 2.

We were talking shares in the pub last night (yawn!) and all of us thought that Philip Hammond etc. all talking about a solid economy, when in fact its consumer driven (with debt) is going to lead to tears at some point, given rising costs of basic goods and services.

There's a load of converging not very nice stuff imo, including that the recovery was a jobless recovery and the 'new' jobs are not as highly paid as the ones that disappeared. Plus robots, plus blockchain, Uber all that gradual removal of jobs + outsourcing overseas.

So pawnbroking, loans etc. a good insurance investment I hope.

[yump] 29/4/2017 12:29

Are you searching something like 'short term loans' ? only that's a highly competitive term and they'll take a while to get any traction in Google.

I imagine they are big enough to go for TV or other paid advertising.