RE:RE:Exciting, Please feedback about news and Market reactionThanks. I appreciate it!
Please, what is your take on the change in the business model? as per "a company focused on providing revolving lines of credit to the highly fragmented U.S. mental health and addiction services market"....."We will focus our energy on lending to mental health and addiction recovery businesses from here on out"
exciting wrote: Well i do not think we have the same view on the company but since you are asking so politely for my feedback i can't say no. The overstatement of recognize revenue is an understandable error. Since they said it didn't affect the net earnings and that's why the shareholder's equity increased by 1 million compare to last year. It is for tax refunding since by the book they have to declare a loss if i understand their accounting which is a good thing. What worry me more is rather the line of credit drawn by client is not as high as i expected. Hopefully it is only for the 4th quarter as we know it could goes up one day and down the next day. That's why the loan book of 70 millions+ means nothing. It is the credit drawn by clients that drive this business. That's the reason why they want to have another source of revenue by acquiring RBP. We know what they can do for the lending part now let's see if they can integrate RBP in a good way. Execution in the next 2 or 3 quarters should give more feedback on where LND is heading to. In my mind RBP is a very good match in term of diversifying the growth path. If you want my opinion there is an overeaction from the investors but i can understand. The company could handle all these a lot better. I am not adding but i am not selling either.