Provident Financial Share Discussion Threads

[umitw] 27/2/2018 08:09

Wow you thats some uptick!

[ccnp] 27/2/2018 08:05

Issue price of 315p - at the very low end of expectations. Institutional buyers had little option and that is what will have driven the price down and will be a guide to small investors as to the core business value.

The statement majors on the FCA concerns but those are minor compared to the structural damage the botched reorg did to the core business. Interesting that the re-org is subject to enhanced supervision by the FCA - almost another investigation but not declared as such. Definitely a shot across the bows. Could be read as a clear statement by the FCA on what they are wary of wrt PFG's debt recovery model/practises. That is likely to have a negative effect on PFGs ability to service old defaults.

Return to divi on 31 december 2018 but then a qualification that it will be nominal. So they have painted themselves into a box, doubtless demanded by institutional investors. PFG needs that dividend needs to be far beyond nominal so worth a well covered punt come the end of the year subject to an interim trading statement mid year. If that focuses on the FCA settlement, as this does, then the core business is shot and not responding to the solution to the reorg debacle. Le May will be in trouble (Maybe we will have 2 Mays in trouble come Q3?)

Ongoing FCA oversight is a nasty blot on the landscape. They bought themselves a year and this is still a high risk day trader share.

[tsmith2] 27/2/2018 08:02

They should have announced RI yesterday, the fact that they never denied was enough to confirm..

[liam1om] 27/2/2018 08:01

Currently up 20% pre-market at 710.

[bookbroker] 27/2/2018 07:57

Off course there will be a downtick in the share price 2676, they are issuing a further 60 mln shares to the market at a fair discount, I said 450p open, could be completely out in terms a line under issues and the underlying profit!

[sippguru] 27/2/2018 07:44

I suppose a bond issue later this year/early 2019 is the plan to cover the upcoming maturity as that big hole doesn't appear to have been addressed as yet. Given the seriously disingenuous nature of previous RNS from this business i remain seriously doubtful the dividend will actually come to fruition next year. They'll blame a cash shortage and swerve it again at a guess.

[grahamg8] 27/2/2018 07:39

What no comments? Settlement of the Vanquis investigations seems to have surprised the pundits, and Moneybarn investigation costs have been monetised. PFG still making money on a day to day basis. Rights issue will go ahead as 48% approvals already in the bag. So no further melt down in the share price. Dividend to be restored in 2019 (at a much lower level) with a lot more shares in issue and lower profits ongoing to pay them. Good news for me as I hold PF21 bonds and they are a lot more secure today than yesterday. Need to get the slide rule out to see what price I might buy some PFG though.

[masurenguy] 26/2/2018 23:38

Interesting - no position.

(ShareCast News) - Provident Financial is down at its lowest levels since the mid-1990s on the back of a weekend newspaper report that suggested the doorstep lender has been sounding out investors for a "bumper" capital raise. The Sunday Telegraph had said management was looking for up to £500m to cover the cost of fines and to shore up its balance sheet. The article said that the announcement could be made alongside results that are due on Tuesday. Broker Numis suggested the balance sheet does not need shoring up as Provident is "trading profitably and it is not paying dividends".

Provident, as well as recovering from its calamitous strategic rejig last year, is under investigation by the Financial Conduct Authority over its Moneybarn car loans business and the repayment option plan (ROP) sold by its Vanquis Bank arm. At the start of February, Malcolm Le May was made permanent chief executive, with the banking veteran having last year been appointed executive chairman on a temporary basis. "While we believe it is possible that Provident could secure a contingent capital facility from shareholders, if there is a capital raise we believe a firm outcome from the FCA is required so that the quantum of any customer redress can be known," Numis said.

The resolution of ROP "should see investors start to look at the value of the group as opposed to obsessing about ROP", analyst James Hamilton said. Hamilton believes Provident is worth about £3bn "on a look through basis" and consequently if ROP were to cost £0.5bn -- though he does not think it will cost anything like that -- "shareholders should double their money". The shares were seen as a 'buy', "if there is 100% upside in a worst case scenario".

[mondaytuesday] 26/2/2018 21:47

Wishing everyone the best in the morning.

Let's lose some money!

:)

[bbmsionlypostafter] 26/2/2018 12:09

Second most shorted share in LDN toda, only 0.1% behind .........Carillion!!

[umitw] 26/2/2018 11:17

IMV shorters are taking the opportunity to make a quick buck!

[my retirement fund] 26/2/2018 10:39

I should think theres a lot more to the issues here than just the board jumping ship. Issues such as solvency and not to mention regulators

[tsmith2] 26/2/2018 10:15

Not sure why company hasn't put a statement out. Given movement in share price and lack of statement, think RI is a given.

[umitw] 26/2/2018 09:34

But it doesn't instigate a price drop of 13-14 %..!

[paddyfool] 26/2/2018 09:15

The change in management should have been an RNS or at least got out there. This mornings rout is testimony to a not great team.

[tsmith2] 26/2/2018 09:12

Can't see it..

[fillipe] 26/2/2018 08:54

Today Liberum say Sell and reiterates 483p tp.

f.

[sippguru] 26/2/2018 08:31

I wonder whether our oh so clever chartist saw this coming in his charts.........

One of us predicted 600p in the short term, the other 900p.

[umitw] 26/2/2018 08:30

News is out,not the rights issue!

[solarno lopez] 26/2/2018 08:19

Makes sense, a price drop on rumour of rights issue

[smurfy2001] 25/2/2018 22:44

Well i'll forget my target now.

Rumour of a £500m rights issue is being sounded out possibly this week when the results are announced.

I reckon Woodford is not going to be best pleased if that happens that's a whopping amount of cash he'll have to fork out.

[cc2014] 22/2/2018 11:40

Starting to look sick again

[smurfy2001] 19/2/2018 13:56

Still riding MA20 on the chart.

[tradejunkie2] 15/2/2018 13:47

CCNP, thanks l think my kitty cats need help.