if we don't have a major recession and simply have slow steady growth, this is priced insanely cheap. Most bankss trading for ~10X PE when interest rates around the world are going negative and with increased regulations and fines. OMF you get a company trading less than 4X and experiencing solid growth in the business. Insiders were buying at these levels, so is there a skeleton in the closet, or pessimism about the economy so high that it has crushed this stock? 3-4 yrs of steady economic growth, and the earnings pay for itself.
With the economy so strong and job creation, fears of borrowers suddenly not being able to pay debts are overblown. World may have issues, but US is doing remarkably well. I wouldnt be surprised to see defaults go down...
Domestic company with no impact from Brexit. Financials have rallied back all of their pre-Brexit losses, but OMF fell off a cliff and isnt really coming back. Trading for less than 4 times forward earnings! US economy shows no signs of strain and is actually growing nicely, so why is this priced for a dooms day scenario?
Anyone who wants a job can pretty much get one in today's environment, and wages are going up. Why will borrowers suddenly not be able to pay their loans???