Member Info for FrankyS1971

I hwve a good wedge in Amigo but kind of agree with debtcamel. She is basically saying what her fears are without more detail which needs to be forthcoming. I also think the calculations for redress are very tricky. Amigo suggests that creditors are broadly similar and they are not so i m not surprised FCA need external help to get under the bonnet of the proposal. I havr always said that bondholders and shareholders will end up taking a haircut. FCA will force us to take more pain i believe. Even Sara is suggesting that Amigo would survive with a haircut and that is the Plan B on the way. Its also why i think 10p will be worth more like 6p thus making 12-13p by summer very realistic as a price target. I m in at 10p and seeing 20% in a year as good return. But not for the risk. The worst case scenario for Amigo is unfolding as i wanted to multi-bag like the nexr man. For that to happen you need to think 18 months+... feeling bleak and would like to be wrong but i m usually not. He says arrogantly lol

Only if FCA endorse it beforehand or Amigo will withdraw it.

As soon as FCA allow SOA to progress to court this will fly up. That will be in place likely by early March..i see 10p by end of month/1st week of March.

Don t really agree with that. In context of insolvency without an FCA backed bail out the report is entirely pointless for Amigo. If we get beyond May then yes, it underpins the LT value of sector. I guess you could argue FCA will want trusted partners in this space like amgo2.0

I guess it reiterates Gary s conviction that the product is absolutely needed. Nothing new in that. Major Banks can come and buy us to get into this space in a few years if they like.

Who knows. But my guess is every tighter regulation and ever rising complaints. Therefore FOS can make money elsewhere not just off the Amigo gravy train and alsi FCA will want trusted partners. Longer term its a good thing so long as there is a longer term!!

This is already excellent news. As FOS can go make their money elsewhere now-))

They will restrict lending and you might even need 2 guarantors not 1! Nonetheless, clip our wings too much and nothing goes into the pot so they ll find a balance.

I think if the SOA is dismissed, it isn't the end. I believe that Option B, will be another Scheme which mill mix and match both cash and shares as redress. Rather than 15% profit, we will be diluted down and customers will get physical shares issued to do with as they wish. Get the calculator and work out how many 10p shares a person needs to get say 1K in compensation!! 10,000 shares X 150000 complaints -=1,5 Billion shares required= 3 times the current market Cap = our 10p shares are actually worth 3-4p. Now, I'm not suggesting these numbers are even close to a Plan B. But something of this ilk would be next up as a proposed solution.

As GJ says it will be a very different business going forward. He will sort it. Ex FCA peeps embedded and all approved people.

You are wrong mate no offence but the fca will restrict them for sure but they wont be stopped as a business as then nothing goes into the pot. They have to let handbrake off. New products and processes and fresh start coming.

FOS continue to process claims and not get paid. This is because they know Amigo will go into administration and dont mind doing a pointless exercise for customers free of charge. Hmmmm can anyone spot the weakness in this argument.

FCA will give us a mauling and quite.frankly the sp thumping is a good thing as we couldn t look any weaker and dont need them to kick us whilst we re down. If we were at 15p teying to get an SOA off tbe ground it wouldn t look very good would it lol

The scheme won t just let people off the hook at all idjut lol..they still have to pay their debts.

Anything binary like this is a scary ride. Entire capital destruction with some customers getting paid out fully and many getting nothing is what Sarah at debt camel wants. Given the FOS will get Jack all in that scenario i know the likelier outcome. GJ is playing an absolute blinder.

I blocked him earlier cos he s a bell end

Yes thats coming..i think this will tie in with what the FCA will sanction going forward with best practice on advice in part from the findings. If they strangle future lending too much then the pot won t have the level of redress to be fair which makes this tantalising. The FCA process for such schemes is in the handbook and there are substantial consultations involved. This process is entirely on track IMO Mark as the redress formulas and priorities need testing. If they are going to allow it, it must run without any unknowns or controversy so it ll come good i believe with some adjustments.

Mark, thats true but the FCA will have either backed it or not by the March hearing and if they dont back it Amigo will pull the plug on the SOA. If the FCA back it it.will be after consultation with consumer groups CMC s and the whole shebang so expect May to be a shoe in. With timing, the consumers need some advance understanding of the scheme before the March hearing so expect major news by early March or 2nd week. Trajectory of this will be clearer at that point. Hope that helps.

This is the crux and the beauty of it. FCA have to approve Amigo lending to make the comp pot sensible. The more they restrict future lending the worse the customer detriment. This is now about getting the balance right. You will find that the future profits given up may end up being 20% or even 25%. to get approval but then Amigo have to apply more aggressive lending strategy which stores more problems up so no point FCA pushing this too much.

You lot honestly!-) did anyone really think a scheme like this is bish bosh bash job done? Its an alternative to insolvency like a company entering an IVA rather than go bankrupt. As with an IVA you negotiate how much debt to write off and get it agreed in court. This was predictable from december onwards so i m surprised at how many weak holders are selling up TBH. Its all froth. This will happen just be patient.