Fair points, i'd forgotten about the loss of SACC business...

First 11 Last

Share
Profile

Follow
Tarvold

955 Posts.

86

03/08/18

07:58

Post #: 34700342
Share

Originally posted by JoeGambler ↑

What kind of margins have you assumed for the new capital deployed in the auto loan book, a lot higher than the 62% at H1FY18? And at what rate have you assumed they lend out that borrowed capital, retained earnings and proceeds of SACC book wind up?

I think you may be being a little optimistic, Tarvold. Then again, I would be very happy for those numbers.

I feel like there will be more options exercised in FY19 as millions are still outstanding, and some are expiring in the coming months and next year. I was thinking around 34m-35m NPAT on my very rough scribbling, essentially just evenly staggering the new earnings as the money is lent out over the year. I also cut 3/4 of the SACC contribution assuming it's run down or sold very soon. On the current number of shares EPS would be about 19.5c. So, high single digit growth on FY18, however obviously with more shares on issue that falls.

Currently the shares trade on about 12 times and that would equate to FY19 share price of $2.34. However, I think the exit from SACC lending could be a positive catalyst for PE expansion. The stock could potentially be increasingly supported by new investors/institutions by removing that ethical barrier. What do you think?

Expand

Fair points, i'd forgotten about the loss of SACC business contibution.
Your numbers look probably more realistic.
Not sure about the PE increase though, i think it'll hoover around 11-12.

MNY Price at posting: $2.07 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

RSG

Resolute shares bounce back as second payment made to Mali government to secure workers' release

Ice-cold winner: Cryopreserver Vitrafy escapes November's IPO struggles to end debut week higher

ADD

Parkes Au-Cu project to 'transform' Adavale Resources with key targets

Week 48 Wrap: ASX flirts with 8,500pts; APRA declines mortgage loan easing; Trump's Bessent tied to Dem donor

HotCopper Highlights: Your most watched stocks for Week 48, 2024

Dale Gillham's weekly wrap: Bold moves in NZ, caution in Australia

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

First 11 Last

Add MNY (ASX) to my watchlist

Fair points, i'd forgotten about the loss of SACC business...

Top Stories

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Resolute shares bounce back as second payment made to Mali government to secure workers' release

Ice-cold winner: Cryopreserver Vitrafy escapes November's IPO struggles to end debut week higher

Parkes Au-Cu project to 'transform' Adavale Resources with key targets

Week 48 Wrap: ASX flirts with 8,500pts; APRA declines mortgage loan easing; Trump's Bessent tied to Dem donor

HotCopper Highlights: Your most watched stocks for Week 48, 2024

Dale Gillham's weekly wrap: Bold moves in NZ, caution in Australia

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects