A few observations and points from me:In all of these consumer...

A few observations and points from me:

1. In all of these consumer finance businesses it is very very easy for the BoD and management to influence volumes on a month to month basis through the various marketing and incentive levers that they can pull on.
2. They can easily pull these levers up and increase volumes (and therefore cashflow and profits), and just as easily pull the levers down and slow the business volumes down. It's temporary, responsive and easy to reverse or change direction.
3. I suspect that the heavily conflicted CEO and some of the Board have told management to pull the levers down to slow the business temporarily to paint this "terrible" picture. Once LFS get hold of it, then it will be full steam ahead.
4. By running the HCF business down now it sets a lower base starting point for the HCF business if it gets into the hands of LFS - which means that the new management of the HCF business within LFS (which, surprise, surprise is the current management within Humm) will get a lower starting point and an easier run to hit their targets to get their bonus from LFS.
5. I've never seen a CEO and Board be so conflicted in a transaction. When there are conflicts like this - look to where the incentive lies for the individuals involved. The CEO and some of the BoD have a huge incentive for this deal to happen because (a) they have new big jobs and pay cheques waiting for them at LFS, and (b) if the deal falls over, they will have to resign in disgrace. Follow the trail of self interest and you will understand the basis of the the intent of the deceit that is being thrown around here.
6. If the HCF business is truly in such bad shape, and it is permanently in bad shape, then changes need to be made within management to get people in there who will actually run this business for success and deliver on a proper strategy in the interest of shareholders.