Member Info for FrankyS1971

We're hooked up on the level of interest but that won't be the issue, it'll be the process and whether the advice given was treating customers fairly and whether the process complies with the rules.
For example,
An advisor has to make a customer aware of other products, even if they don't sell them, so that the customer understands the alternative routes to borrow
They must have a 7 day gap between asking for the loan and then being recontacted (called a cooling off period)
Advisors have to be approved persons by the FCA
There are a myriad of other rules particularly around debt restructuring and also extending facilities to people who want to borrow more.
Its not about affordability this is a total red-herring. It's the SALES PROCESS where this is broken.
The FCA has ordered them to pay compensation and there will be a formula to determine how much.
The danger is very simply down to whether the risks and controls became lax over time and with new management, or whether the sales processes were always over-stepping the mark in which case the same rule applies to all previous loans.
What we really need to understand is what Amigo and other guarantor lenders are falling foul of?? What are the things that have systematically been done wrong to the detriment of customer. If we knew that we could make a better judgement. There is much more to this than affordability even when JB tweets about using Transunion like the other Banks, even he, I suspect is throwing a red herring out.
How are Sales guys compensated/insentivised?
Who are the risk and compliance guys in the business - in fact do they even have one??
There is an awful lot we don't know and that we can't no which is why this is a highly highly speculative punt.
One that;s worth taking but there's lots more to this and it won't be an easy fix - its highly possible that Amigo is left to unwind in an orderly fashion and pay out what it can before going into receivership. I'm sure I'll get lots of haters for saying it. But its a version of events that is still highly possible.

Mark i want these to come good like the next man but do you ever play devils advocate with the stuff you come up with-)!? So blase like yeah that gets sorted then instantly get back to lending and boom ..yeahh.. sp will start to rock man! You definetly need me to put a dampener on unbridled enthusiasm now dopey s popped off-)). One suspects this may not be quite so straight forward!

My LTH has been in GOLD in various forms for 3+ years and it has been incredibly dull to follow by and large but finally there is a big upside and it takes patience for stuff to come good. I do worry about some folk on here charging in on knife edge stocks!

Everything is a gamble - you miss the crux. High risk and high reward v low risk and low reward (usual way it goes). Layer on that TIME and i'd say AMGO will either be insolvent or turning around with a multiple of todays SP by year end. So yes its a gamble but you have to decide if the rewards at these prices are worth it. NSF and god know what else get thrown in and usually the formula is the same. SP crashes, lots of gamblers going ooh goody lets catch a falling knife for when it comes back. Hands up how often anyone buys an equity that doubled in price over 12 months say? Not Many I suspect:-) just saying what the mentality of posters on here is. And it ain't good even if you guess the odd one right you'll come a cropper eventually, AMGO is an unusual one though and upside makes the risk worth the reward IMO.

Interesting how everyone on these boards are like moths to the casino style stocks. You're all pure gamblers not really investors at all and thats a zero sum game so enjoy the petty squabbles taking lumps out of each other as you take the slide inevitably down. I don't hear guys like dopey talk much about their losses. I know they are eye-popping.

A few days of consolidation at this level would be magic! Getting out of the volatility will bring in retail investment and help to inflate the SP in a more constructive manner. if this is up to 15p in a month then that's awesome progress. Better that 10p to 7p to 12p to 8p to 15p for example which adds to the casino flavour of the stock and will ward off one type of investor and bring another type in. I think it becomes much harder to look through the clutter of a spikey up and down stock and mistakes are more easily made!

RNS - claims for compensation continue to build as we continue discussing contingency options with both the FCA and our credit facilities

Now this isn t the RNS of course but as a holder of now 500000 + i am prepared that more bad news often follows bad news so lets not get carried away in LALA land too much. This will take until possibly October and the deadline to start seeing the woods for the trees!!

well there s one major thing no one talks about and its called the FCA. We all need to understand better their objectives, principals and how they operate. This is not a problem that GC or anyone can clcik fingers and make go away. I say all of that because tbe business model will clearly need to change somewhat in light of tighter controls to protect consumers. This may well lead to a dampener on growth as lending pre Covid is going to be restricted. Further all the rules on capital adequacy, liquidity amd risk regulations is why their creditworthiness is in question. You have to have a significant buffer these days and the riskier the model the higher that buffer has to be. They will almost certainly have to raise capital to continue in business. This doesn t stop me holding shy of 500000 shares. But this is the left field thing i suggest.

Sell everything then Yuri and hold cash - or pick out stocks that are looking oversold.

Fine Yuri but you need to realise that the NAV is beyond 30p and that 10p does not reflect the risk profile. 25p-30p right now would still reflect the armagedon scenario and would be at a huge discount from where the business was when it was performing. Todays SP is not fair value with everything on the table that we know.

Things can move fast! now into paper profit suddenly!

Temporarily glad to have topped up another 60000 at 8.3 yesterday. AVG of 9.5p..my blue days are coming any secondo! Party time. No way I'm selling a bean of them. Hopefully everyone will have the same attitude and will see JB share dump over wtith and a tightening up of supply!! Back to 20p by end of September latest with a bumpy ride possibly en route!:-))

I'd prefer singe digit rises and a steady reinflation of SP rather than 25% up then 20% down. There's no difference if we see a few 5-6% rises in a week or two. A more settled sustainable leg up would help pull in more investors I imagine so it feels less casino like!

At 4pm I am cracking open a bottle of SOL and having a Taco. I know this is mexican sustenance but will that affect the SP of Amigo??? Is Amigo Mexican?? I'm topping up then.

I agree BB. I was thinking the SP will get a flame under it not when JB stops selling but when he starts buying. Whatever the vehicle may be or how its done. With his selling activity combined with the FCA deadline in October, I would think we will have a very meaningful update by early September. Something may of course happen before then but I can only see the next news being positive.

It won t go to JR as FCA supervisor and Amigo will agree a way forward and cooperate. FCA can t waste resource on a 12 month court case and are accountable for spend efficiency etc. If they are putting amgo in corner then thered be no choice.

I m sure that he isn t. You can t monetise your shares until 3 years after an IPO. His shares are worth sh€t currently. He has a year to fix rhe business and if he so chooses he can sell up.you don t get shares in an IPO and just waltz off a few weeks later you actually need to deliver SH value.

Too soon

7.5-8p feels like the new floor as opposed to 5.5-6p. In context that's at least 30% higher in a week since the SH*% hit the fan. Tomorrow will be very interesting to see. Still looks like a trend of higher lows and higher highs on a day to day basis. Doesn't bother me to much what happens now as give it 2-3 weeks and we'll see 13-14p ie. testing the most recent high from a month back..

rarely is it down or up a bit if ever. So today my luck guess is a close of 8.8p - I think it will get support above 8p.