Capharnaum wrote: Paddy902 wrote: Thanks for the posts everyone, my biggest concern is that management felt the need to release at 6pm on a Friday....kinda tells you what they were thinking. We will likely open down and stabilize quickly, but short term not so much my concern.
Considering that Q2 was pretty strong, and that the underlying metrics have improved, I wouldn't be surprised to see the share price trend back towards $6.
Net income from operations (operating income minus income taxes) was about $5.3M, or $0.33 per share. That's $1.1M more than last year, $0.07 more per share.
Provision for credit losses was $5.4M compared to $6.2M last year.
On the qualitative side, the overall quality of the credit issued is at its highest in proportion (66%). Deferrals were reduced further in July compared to June (at 33% deferrals left vs 50% in June). They already have very high provisions set aside (over 15% of loans).
If Q2 was the new run-rate, we'd be looking at $1.30 forward EPS. I don't think that will be the case because lower of originations which will affect the top line and their financial margin may see higher provisions. If you lower top line by $1M on average and use 25% of revenue as provision for credit losses (was 18% last quarter and 21% last year), you would get $0.80 forward EPS. I think that's a decent expectation for the next 4 quarters. As to the dividend, well it will depend on banks willingness to fund originations. As long as the banks don't, they won't resume a dividend as they need that cash to generate new revenues.