Earnings very good again and up 38% from 4Q. No issues with delinquencies or volumes. Earning at $1.50 rate. They could raise the dividend to $.30/qtr form $.11 as they have no need for added capital. Yield now 2.6%. Stock very cheap at 9x next year's earnings. Still believe they will sell out at $50 in a few years.
Cannot explain the stock price decline. It must be one of the hedge funds liquidating. They must have expected a bad quarter or maybe the fund is liquidating. Great buying opportunity.
Where do you get your 14 multiple? Is that the multiple the stock has traded in the past?
I also think your EPS of $1.90 for 2015 is rich given yields on new contracts going down. I think it will be in the $1.65-$1.75 range
looks like they lowered expenses also-- a few less employees. They are at the point where the unproductive salesmen are being let go. Yields down slightly but portfolio yield still 13% with cost of funds .8%. Those are crazy margins which when the balance sheet is fully levered would yield earnings of $4/shr + at current metrics. Stock drop is a mystery. I agree one of the funds trying to get out---could be an index fund as selling was every day and they have no regard for fundamentals.
The fully levered EPS of $4 might be possible if they operated at "normal" bank leverage. However, based on the leverage implied as their goal in today's CC I think that their earnings potential is more like $2.25-2.50.