In the Q3 CC, they said capital return isn’t a priority for them in 2025. I expect earnings to continue ticking up here but I don’t see any clear catalysts outside that.
Can't offer much on Nam Cheong. Balance sheet is horrible - negative net worth. But revenue and earnings are coming back. Trades <1x P/E? Perhaps something worth investigating, though not sure I will get around to it anytime soon. Good luck with it!
Howdy. Wondering whether anything has changed as far as your read on PRA Group since this was written. All the news I have seen (such as earnings) has been positive, but stock is drifting back down.
Assuming continued good performance, curious what type of events (stock buyback? q4 earnings?) might trigger a meaningful revaluation of this one.
I own the stock and am therefore biased...can't help but feel this the -30% is an overreaction. So yeah, management is guiding down for full year. The basic of my thesis - that improved supply would lead to an earnings turnaround still seems directionally valid, though perhaps the degree/timing of the earnings turnaround is under question. Cash collections +13% YoY but of course the accounting for revenue is not cash-based but includes lots of management assumptions about the future. Even if we assume earnings are flat this year, the stock is on 7x P/E, 0.6x tangible book. How are you seeing it?
In the Q3 CC, they said capital return isn’t a priority for them in 2025. I expect earnings to continue ticking up here but I don’t see any clear catalysts outside that.
Meant for this to be a reply to @Nick the Greek
Just found your Substack and really enjoying the write-ups. Definitely assisting in that initial searching phase!
Would be interested in your take on Nam Cheong (SGX: 1MZ) some interesting potential there that Ive had brought to my attention.
Can't offer much on Nam Cheong. Balance sheet is horrible - negative net worth. But revenue and earnings are coming back. Trades <1x P/E? Perhaps something worth investigating, though not sure I will get around to it anytime soon. Good luck with it!
Howdy. Wondering whether anything has changed as far as your read on PRA Group since this was written. All the news I have seen (such as earnings) has been positive, but stock is drifting back down.
Assuming continued good performance, curious what type of events (stock buyback? q4 earnings?) might trigger a meaningful revaluation of this one.
Thoughts on most recent earnings report?
I own the stock and am therefore biased...can't help but feel this the -30% is an overreaction. So yeah, management is guiding down for full year. The basic of my thesis - that improved supply would lead to an earnings turnaround still seems directionally valid, though perhaps the degree/timing of the earnings turnaround is under question. Cash collections +13% YoY but of course the accounting for revenue is not cash-based but includes lots of management assumptions about the future. Even if we assume earnings are flat this year, the stock is on 7x P/E, 0.6x tangible book. How are you seeing it?