Iou Financial Inc V.IOU

RE:RE:RE:Is this a sleeper or a snoozer?

[MainStonBaySt]

This sleeper just might be waking up...

By my estimation:

IOU market cap equals $13.2M;

Reported last two trailing quarters (Q4 & Q1) adjusted net income of $0.9M;

For a company that should be set to grow, in a growing industry, at $0.15 per share:

if they deliver even half of [$0.9M] in upcoming [Q2 & Q3] you're looking at a 10x 6 month forward P/E ratio...

If they deliver the same [$0.9M] in upcoming [Q2 + Q3], you're looking at a 7.3x 6 month forward P/E ratio...

If they deliver the same [$0.8M] from Q1 for the next three quarters, you're looking at a 4.1x 9 month forward P/E ratio...

A few more positive quarters and I get the sense that the ten minute "not-delivering-in-the-past" penalty might be over for IOU and that the Company is about to emerge from the penalty box.

[greenisgooooood]

What is a good foprward PE Ratio for a finance co like this. Thanks

[MainStonBaySt]

Dear greenisgooooood - the answer to your question re: a 'fair PE' ratio really depends on what you think IOU's organic growth rate can be.  I think that they've mentioned that they believe they can grow at 20% to 30% organically per year.  Clearly, 2016 & 2017 was the opposite of that as the company shrank, so I haven't really given them the benefit of the doubt

[greenisgooooood]

Thanks for your comment

[KingBill]

Good they had a small profit but It is just Q1.  There will be lots of costs incurred in Q1-Q4.  So I am not convinced yet.  Only if they can show the same in Q2 and Q3, I will convert all my cash to IOU....

[MainStonBaySt]

Completely agree KingBill - they have to show consistency over Q2 and Q3.  Show me the money!

[KingBill]

Feeling some manipulation right now in IOU, so my humble suggestion is that stepping in now but wait until Q2 to decide if we need a full load.  If all goes well, this stock should be traded at least $1