The Australian Financial Security Authority today released the quarterly bankruptcy figures for the March 2014 quarter. In relation to debt agreements, this is the highest quarter on record ever. To put the quarterly growth into perspective, the March 2014 had 2,678 individuals seeking protection as opposed to 2,376 individuals in March 2013. I make that to be just over twelve per cent growth when comparing the previous corresponding period.
While the growth in insolvencies might not be a good sign for the economy, it certainly is a good sign for Australia’s largest provider of debt agreements who claim to have approximately 50 per cent of the market. Potentially over 1,300 new debt agreement clients in the first quarter alone.
Let’s hope the loan products are also getting a workout.
There is a good story being played out here, I have a feeling patience will be rewarded in the long run.
My last buy was at $1.40, I got caught out buying before the half yearly result. I got a bit to optimistic. No worries, a long term investment for me.
FSA Price at posting:
$1.13 Sentiment: Hold Disclosure: Held
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