Ann: hummgroup 3Q22 business update, page-34

When has logic and the sharemarket ever had anything in common? People will always be overly optimistic and overly pessimistic. The concept of “Rational Man” might be an economic one, but I have seen little sign of it on the sharemarket.

At the moment they are assigning no value to the sale to LFS (which is pretty much definitely happening) and almost no value to the residual commercial business. Don’t expect this to change in the short term. Maybe after the deal gets approved but really I am expecting the sale to happen to LFS and then maybe after a set of accounts come out with HCF removed and just the commercial left we will see that get the price it deserves. The value in LFS could be longer to achieve as it will suffer from the same anti consumer finance sentiment that is around at the moment.