Member Info for Rocket79

I have read a few broker notes all the Buy recommendations. All share price targets were higher than current share price. This is undervalued at this price and I can see this being above 400p within 6 months imo

I see directors loaded up here above 7p in June. Strong Buy signal

10p tomorrow is possible. Good news released although agree news must have been leaked as share price spiked before release. Any way anything under 7p is a gift imo

That explains all the buying this afternoon. This will rerate

Provident Financial Group: Canaccord reiterates speculative buy

Broker Shore Capital noted that the balance sheet “remains in good shape with capital headroom having materially increased since the start of the year, while the funding and liquidity position also remains strong”. 

Analysts noted that as a result of introducing more cautious economic assumptions into its IFRS 9 models, forward-looking impairments increased sharply resulting in an improvement in the overall coverage ratio for the group to 33.5% at the end of June 2020 from 28.3% at the end of December, saying “such coverage levels are significantly higher than found at mainstream lenders”.

With the shares have fallen by 57% in the year-to-date, versus a 20% fall in the FTSE All-Share Index, Shore Cap said they were trading at less than tangible net asset value, around four times forward earnings and a dividend yield of almost 13%, “despite the strength of the balance sheet and the scope for returns to increase to 20-25% over the medium-term”. 

“We believe there remain significant opportunities for a well-funded and well-capitalised non-standard lender to grow in the aftermath of the Covid-crisis given a likely increase in the number of available customers along with a reduction in competition.”

The results, agreed broker Peel Hunt, were “generally positive, showing that the business is proving resilient and trading better than internal plans”.

Shore Capital reiterated its Buy rating on Provident Financial, saying the subprime lender is well placed to capitalise on opportunities....

300p target easy

Chief executive Malcolm Le May said group losses were “better than our initial view of Covid-19's potential impact on our businesses” and as a result, the group has decided to repay all furlough support to the government.

With total liquidity at the end of June of £1.2bn, May noted that Provident Financial's “strong financial position will mean that we can keep helping, and responsibly lending to, our customers, many of whom are key workers, as we, and they, face the challenge of furlough support ending and unemployment rising in the coming months”. 

“Our market will grow due to the pandemic, but at present, it appears the supply of credit into the market is decreasing, which cannot be a good outcome for customers, nor a public policy one for the UK,” Le May added in the results statement.

Dont expect fireworks today with share price. Result was good but the study was only small 12 poeple. Need to wait for next set of results to prove it works then this will rerate.

I may miss the initial 10-20% today but will be topping up today.

Very strong results here. Hats off to management 300p could be hit alot sooner than I thought.

Im expecting a good day for PFG shareholders tomorrow. This is undervalued and due for a rerate as all bad news priced in. Arrow Global had an update today with collections in the UK particularly strong. I'm expecting the same for PFG tomorrow, Strong Buy

This will rise back to 300p very quickly imo

Good to see Buy recommendations. Totally agree Arrow undervalued.

Share price picking up how after institutional Q&A. There are undervalued at current price imo

Collections holding up well. Results better than I expected.

Cash positive in H1 2020 with available cash headroom increasing to £166.7 million (FY 2019: £153.0 million) - driven by continued strong free cash flow (FCF) generation of £82.5 million (H1 2019: £115.3 million) and reduced capital intensity from Arrow co-investing with the Fund.

I'm expecting results to be ok considering cv19 situation. At this price Arrow is priced to go bust which it clearly will not imo.

Undervalued and ready to rerate imo. This will blow past the 150p price target in the near term imo

Bad news and more is currently priced into current share price hence reason I think they are undervalued. These will rise significantly over the medium term.

Bad news and more is currently priced into current share price hence reason I think they are undervalued. These will rise significantly over the medium term.