I have held MNY for something like 3 years, buying under 80c.
In that time it has gone to $1.80 and all the way back a couple of times.
It is enormously cyclic.
It has gone up and down on factors such as:
- Liberal party review of payday lenders (yes prime minister stuff) - no real impact on fundamentals
- Pie Fund buying - no real impact on fundamentals
- Pie Fund selling - no real impact on fundamentals
- Availability of funding - no real impact on fundamentals
In the meantime MNY has just kept on producing cracker results, and delivering good dividends.
You can choose to jump at the shadows, ponder the negatives, ride the cycles, ponder who is buying, ponder who is selling, but they are all semantics that don't affect the fundamentals.
I haven't seen anything yet that has stopped them from getting on with their core business.
3 years ago payday lending was 30% of its business, today it is less than 15%. This is what they said they would do.
Management are delivering, that's all I care about. And so far the growth in the business remains strong.
If people stop buying cars, yes that would a problem.
Gosouth
MNY Price at posting:
$1.44 Sentiment: Hold Disclosure: Held
