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Specialonek: in a word....nope!
Good to see a steady rise. Will 70p be broken by Friday close?
Agree chaps re TO price a barrier. Some brokers talking about PFG tie up hence why I mentioned it.
Anyways AMGO in an improving position regardless with Richmond now back calling the shots.
Re the speculation surrounding PFG bid - yes technically they could issue shares and indeed that would be their only route but at a price that would be acceptable then it could easily become a reverse takeover which is a much more complicated and expensive process - having said that I could see the benefit to Richmond, in particular JB who at £2 would become the major shareholder of a larger operation and potentially give him an easier exit if that was what he wanted to do - stranger things have happened and I would not rule it out.
I predict continued steady rise on this. As long as this remain somewhere between 65p and £1 I will continue to hold and take the dividends. If it gets to £1.50 i could be tempted to sell but I doubt I would. May as well let the dividend pay for the shares over the next 5 years or so.
Jimmyr I would be very surprised if they can table a bid high enough. The main shareholder who's company owns around 60% of Amigo shares is not going to accept anything less than say £1.50-£2.00 a share and I doubt PFG would be willing to stretch that far. I do not see how PFG are valued so high compared to Amigo when you see the profits made.
irrespective i can't see Richmond selling up unless it's a good price
I don’t follow you. PFG are entirely free to issue new shares for acquisitions. As any company can. The make up of their asset base is irrelevant.
my point was about PFG equity being firmly frozen in not so flexible assets (e.g. despite being "current" - there are some regulations with MFIs about asset structure and reserves), so they are not really free to "use equity" as you say, unless they borrow of course (a lot)..
Dreamer? There’s a thing called financial arbitrage. PFG trades close to 10x earnings, AMGO 3x, it’s entirely possible PFG use their equity for acquisitions. Suggest you go and do a bit of reading.
lol, dreamer, PFG isn't doing that well last couple of years (although I'm no way saying they're in trouble), they don't have even close to sufficient free resources (actually operating on a edge of supporting reasonable liquidity without borrowing, but expensive borrowing is up a bit anyway, plus dividend cut) for such acquisition (at current capitalization, but at higher sp it would be even worse)
Haha I wish I had that much dough Maucha!
But I do see institutional value investors joining the register and least we forget that Richmond Group, aka the original Amigo Founders are now steering the ship. Things are starting to happen!!
Specialonek - chatter over on FT Alphaville that Prov Financial might be interesting in acquiring Amigo. Things could get interesting, and quickly!
Specialonek: I hope it does start to get some traction forward as it has been languish. Maybe Jimmyr could swoop with an offer for AMGO considering how flush he is with cash!!
Jimmyr maybe 70p could be breached tomorrow. I wish I had £100k full stop lol. I think this will start solidifying now with a steady rise week to week.
I added £100k last week on the dip. Good to see institutional investors adding too
Agree specialonik - 5 years of divis gives you your capital back, share price appreciation is just the icing on the cake. Will be 100p+ in due course I’m pretty confident
Gambling on credit cards ban (since 14th of Apr) >=> higher demand for cash >=> more quick/riskier loans.
Jimmyr. I agree this company in undervalued. There is a need for the service provider which is highly profitable. It is a fantastic long-term hold simply based on divi compared to share price. I would be amazed if it's not £1 a share before March. My average in 64p and happy to retain just for divi % .
The company has to walk a regulatory tight rope, that will always be the case. But it’s also the reason the share trades on 3x PE or double digit free cash flow. It’s a silly valuation even with the regulatory burden they have
I'd be surprised if there's significant grounds to it given the previous statements and how "on it" the board seems to be
Over on the ADVFN bb there's talk of regulatory troubles... this is likely to be the cause
researcher1: Yeah I would like to understand that also but the SP was around 57p just a while back so this company is yet to convince investors about the forward path.
Maybe they feel the share going down more ?
Me I waiting for above £1 again to take any hit if not just pick up the juicy yield
maybe someone can explain to me why some will happily take a 3p dividend and then still sell (late today) at a 9% loss to capital. Not good at maths perhaps?