Michael West's 2nd attempt to discredit Shine reads like a bad...

Michael West's 2nd attempt to discredit Shine reads like a bad short thesis: plenty of noise, not a lot of meat on the bone.

It's important to understand the business model and to take a look at what happened operationally in any given year.

1) Cash flows are trailing accounting earnings given the business model. The faster Shine growths, the higher the discrepancy between reported earnings and cash coming in. This is why it's so important to look at the quality and the incentivization of the management team. No doubt Shine's team truly shines in this regard.

2) Shine is growing it's class action portfolio = a few cases, long durations, and big payouts at the end. So important to look at what's actually going on under the hood.

3) Shine used to carry a lot of the case risk on it's books, but is increasingly using case-specific, non-recourse financing. This dramatically de-risks the business and has an impact on margins.