RE:RE:IOU posts third consecutive quarterFolks I wrote about this back in May after IOU's q1 results were released:
If the second half of 2018 is anywhere close to the first half, investors buying IOU at $0.19 are buying a growing company at a <5x 2018 price-earnings ratio. If q3 comes in strong, this ratio could be even lower, which would simply be too cheap.
For three quarters (especially the past two recent quarters), opex and defaults have stabilized - with both of those factors being the major contributors to the year-over-year improvements for q1/q2. If growth is back and loan originations continue to increase, I think we could be in for a positive surprise in q3 and this stock should catch a bid all the way up to $0.60 or $0.70 over time. If the company is tightly held which somebody here has suggested before, then it could get to those levels faster.
I have seen stocks with strong operating leverage surprise nicely before so here's hoping that this trend continues.