Provident Financial Share Discussion Threads

[ny boy] 17/8/2017 16:27

another set back, needs to hold the low earlier this week

[wad collector] 16/8/2017 13:19

Looks like you found the nadir yesterday, though sometimes it is good to be decisive.
I am also in the red here but like I have prev posted , my F-I-L has held these so long that his annual dividend is now much higher than his buying price. Holding and hoping...

[minerve] 16/8/2017 12:42

Losos

I swapped it for IMB which is down significantly. I decided that the chances of IMB increasing their dividends was higher and is less dependent on the EU fiasco. I already have IMB and understand the industry quite abit - and more than here - so I guess it is a reasonable switch.

[fenners66] 16/8/2017 12:39

When you think about the agent or employee relationship there can only be one way for the company to win by changing - compliance.

The agent , as not an employee had to earn commission I assume - so the loans had to work , the employee gets a salary and has to be micromanaged - more managers more cost.

Employee - does he care about profitability? Or his pay cheque?

However he can ensure products are not oversold.....

Just looks less cut-throat and less profitable....

[losos] 16/8/2017 12:32

The Dark Horse - "They'd know if one of theirs was struggling/had another mouth to feed/gambling etc."

They might know, but frankly as a commission agent I doubt they would do much about it. In the old model agents knocked on the door, took the weekly payment, (or as much as the debtor could pay) and were on to the next address on their list.

I thought the whole idea of having salaried staff knocking on the door was that they didn't have to rush off to the next 'customer' that they could spend time talking to the debtor and maybe even giving some financial help.

I use the word 'help' rather than 'advice' because as we all know giving financial advice if you are not a qualified FA is a most heinous crime punishable by death haha.

Will it work ??? Well who knows, what worries me is that once again the nanny state has intervened (albeit quietly) and pushed the loan companies to change their MO in the simplistic view that they know best and the poor have to prevented from taking on debt.

Like Minerve I am underwater on these, not for the first time I got in only months before the bad news started haha and now concerned but the dividend is good and they would be crazy to cut it right now ('tho that might happen a year or two down the line)

[dendria] 16/8/2017 12:13

I've been buying PCF, MCL & SUS. Tempted here but holding off for now - doesn't look like the bottom yet.

[ny boy] 16/8/2017 12:10

Better day, so far, a turning point would be good, if so .
..plenty of upside to take back control of!

[ny boy] 16/8/2017 09:20

Temp. Bottom in?

Seems way oversold, time will tell but 7% divi

[minerve] 15/8/2017 14:51

Sold out. £5K loss. Now it can change direction! LOL

Buying Imperial Brands .

[the dark horse] 15/8/2017 14:24

Sell the rallies as this is probably heading for £15 by next results or soon after maybe even lower by year end.

This is a bygone business and trying to modernise it takes away the very nature of why it used to be good business - the personal knowledge and connection that the collectors used to have. They'd know if one of theirs was struggling/had another mouth to feed/gambling etc. They were rewarded for knowing and collecting. Staff don't have same feel and salaries don't encourage you to collect or turn down an extension or increase to the loan.

This business is relying on its record and the fact that everybody thinks Ftse/3bn mkt cap/div etc but that hasn't saved others and with the worsening consumer lending and economy I think their loan book is going to need a lot more impairment charges.

Don't tend to short stocks so I'll just leave it alone but wouldn't be buying this and it wouldn't even surprise me if they pulled the dividend before payment date in October.

As you can see I am feeling bearish but this is one of the stocks I keep an eye on just to judge the general state of the world and its gone through levels it shouldn't have and the writing is on the wall.

GLA, probably due a short term rlly back above £20 but it'll be heading down again very soon afterwards

[ny boy] 15/8/2017 13:25

Short term bottom @ 1860p?

[minerve] 15/8/2017 12:55

I am more likely to sell, even though I know it is most likely oversold. Approaching £5K down now.

The BOD have not got full-control or understanding of their own business. This is the real issue for me. The handling of this transition has been very bad. It has been poorly thought out and rushed IMO. For whose benefit? Have they capitulated in negotiations with regulators? Very very unsatisfactory and quite frankly the CEO and others should resign. Simply unnacceptable for a FTSE 100 stock.

[wad collector] 15/8/2017 12:37

Decided to add at 1886. Bit of a worry as to what is hiding here , but am viewing as a bargain buy . Hope I don't regret but viewing this as a trade.

Hope the number of this post is not significant.....

[minerve] 15/8/2017 12:22

Yes, roll the dice FFS!

[tweeeek] 15/8/2017 12:09

I smell a bid coming in..

[andyj] 15/8/2017 12:04

It is indeed, seemingly without news.

[fenners66] 15/8/2017 12:02

Volume low but the fall is gathering pace.

[ny boy] 15/8/2017 11:51

Just summer holidays, bears have it easy for now.

Real action starts after Labor Day, when all the big market players return

[minerve] 15/8/2017 10:55

djderry

Why not buy competitive stocks? If PFG lose customers and agents the debt is going to be taken elsewhere - it will not dissapear. Morses Club and Non-standard Finance are popular. Also held by Woodford. He bought Morses Club AFTER the PFG fallout. I did too, but I believe I was quicker than he was. LOL

[djderry] 15/8/2017 10:49

I'm down 30% on my investment here. I'm slow to buy and slow to sell,especially after big moves in the share price (Ben Graham taught me that!).Thinking about buying a lot more but unsure. Definitely not selling.

[sippguru] 15/8/2017 10:43

Thanks jonwig, makes me even more concerned to see a lack of buying activity from the board at these prices if they really believe the stories they're feeding the market.

[stewart64] 15/8/2017 10:24

I guess balance sheet worries. Always had a racey ptice to book that it is still about four. There are recovery stocks with a price to book of one and single digit p/e.

[minerve] 15/8/2017 10:05

This is now my worst performing stock since the financial crises.