Having bought a small parcel at .21 I am contemplating loading...

Having bought a small parcel at .21 I am contemplating loading up now, but I would like to hear a few more thoughts - and I particularly welcome any counter arguments that could save me money in case I am missing something.

Here is my view:

Class Action
- Costs of Lynch CA are well and truly factored in. 3 months is a common turn around for decisions and we are now bordering on 6 months, so it should be very soon. Judging on McKenzie CA and the number of class members the costs, in the event of the company losing the CA, could be in the ballpark of ~$30M. And what would happen to the share price in the event of a positive outcome?! I always hear people speculate that the share price has moved downward because of 'people in the know', but I highly doubt anyone knows the result, and I don't think the company would have contested the CA if they didn't believe they could win. Having read through some of the court documents I am of the opinion the company should successfully defend the matter - though I admit bias.

Financials, growth and valuation
- Much stronger diversification of loan book, with good potential for GLA which is building quickly.

- Very healthy balance sheet that will provide insulation in the event of short term poor legal outcomes, though this has been supported at cost to shareholders

- Lawsuits aside the business delivers strong profitability: NPAT '10: 21m, NPAT '14: 24m, NPAT '18: 22m.

- With a current market cap of $95m, it is currently sitting on a PE of 4.5!!


Perhaps this won't be the bottom, but it is certainly close. With such consistent profits I feel now is the perfect time to buy, to withstand this last leg of the storm and reap the profits in, what I believe, will be a strong recovery in 2020 and beyond.

What are your thoughts? I imagine there are many holders who are hurting right now. I'll be making my decision tonight as to whether I buy tomorrow, and I'd be keen to hear all kinds of views. Thanks.