countercyclical stock for bears

I couldn't agree more with the last 2 postings.

For those who look at the downside threats to the Australian economy - oil price, inflation, higher interest rates - a company that makes it's money out of debt services is likely to benefit.

Even with once-off abnormal costs in H1, this company looks cheap, either on a pe or NTA basis. After their H1 NPAT of $872K, I would expect a figure more like $3m in H2. Not quite the $6.5m in 20062007, but not bad for a $24m company. P/E 6-7...?

FSA has been oversold due to Opes Prime sell-off (now completed). Perhaps there is some tax-loss selling now, but more likely that investors are waiting for news before getting in. (The turnover of shares has dropped after Opes Prime, but the buyers have not yet entered in any numbers).

I suspect FSA was also the victim of being a small company in the credit sector, where many players became the victim of the Sub-Prime credit squeeze.

But I felt comfortable investing in FSA due to their conservative gearing, and high proportion of 'high-doc' loans. FSA is the one throwing the lifebuoy, not needing the rescuing!

One to watch in the new FY.

But DYOR.