agree Noomxx. I am a fan of FSA & Tim Maher, the CEO, but sold...

agree Noomxx. I am a fan of FSA & Tim Maher, the CEO, but sold out @ $1.20
Have been watching ever since.
Increasing interest rates and the great interest reset in June July where people will roll over <2% fixed to 5.5% variable will put a massive strain on households.
but the one big thing that the BNPL craze has proved is that future income can be harnessed to pay past debt - and that’s exactly what Debt Agreements are - an area dominated by FSA pre Covid.
However it is annuity style income for FSA requiring massive energy and cash to build up steam - much like the upfront energy requires to get a train away from the station.
I do think the current woke atmosphere will see creditors opt for Debt Agreements over bankruptcy so that’s a plus for FSA.
BUT, I wonder whether Tim Maher has another 10 rounds in him to rebuild the DA BOOK.
if he does, he might need a cap raise or alternatively scale back dividends to use cash to rebuild the book.
I reckon it will take them 3 years minimum to get back to where they were. And yeah, they have a bigger loan business now, but where is the individuality and market leading status in that. With DA’s they very definitely have a massive point of difference and intellectual capital.