As Asic has indicated its investigation into the payday loan industry, this doesn't surprise me that cash converter been pick up.
Two things need to consider, is it a once off event and its implication to ccv's future profibility .history has taught us repeatedly that in an industry that is highly regulated, the big players win. ( Google Phillip Moris if u are interested to gain some insight into how big player perform under a regulated industry)
By the way, Google ban on playday loan is a favourable news to Cash Converters. Just think of how the new entrants advertise to get market share?
In a growing industry, imposition of stricter law will either:
Reduce the market size
As well, the small players can't survive
So if both factors taken into consideration, I can't see the future to be pessimistic.
CCV Price at posting:
42.5¢ Sentiment: Buy Disclosure: Held
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