Hard to see this clearly given the loans and potential credit losses, but on the face of it....EPS of 3.8c for a share price of 6.9c (or latest 7.7c) seems incrediblt cheap.
The challenge is the ability to continue to grow that autoloan book in a manageable way (it does seem like they have capacity in the Autopay Trust, but it may need them to put up some of the funds so they take the initial loss).
Glad they took an added provision.....well hope this was truly a mgmt decision (and not one forced by the auditors), but either way its a conservative way of treating the situation and gives some buffer in case their modelling was not correct.
If they can generate 4c per share this and do that again in FY2024, then I can't see why this should not be trading at least 5 times that multiple
MME Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held
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