Gongboy, My understanding of the way they work is they are basically a like a mortgage broker and they get a fee for creating the loan and a cut of the interest but another party supplies the funds and the risk, they also offer insurance (again as a broker not the person taking the risk) and at the end of the lease tsm can buy the equipment cheaply and continue leasing or onsell the equipment at a profit.
When I first looked at them was a bit iffy on the funding thought they were carry alot of risk but on reading further found that all risk is carried by funders not tsm.
Not sure why sp has drifted down, suspect it is due to no dividend for end of year and capital raising out of the blue even though they made decent profit.
Check the prospectus from their website has good details on way business works. http://www.thinksmartworld.com/go/investors/reports-and-publications
TSM Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
