NTA of about 30c/share
I will use previous half year earnings less the one off profit of 11million was 32million or about 10.5c/share to forecast.
Pessimistic runoff rate of 20% per year or 10% per 6 months means we will have earnings of 28.8mil at june 30, another 25.9 to dec 31. That is 18c/share which is a PE ratio of 2.77.
The following year profits of 44.32 mil or 14.5c. bringing the nta to 62c in just under 20months time. That not including franking credits of 13c.
This loan book is valuable. Imagine we can have NTA of about 60c + 7c in franking in 8 months and then sell the loan book. I will not sell below 60c and will probably look for about 70c as a sale price.
I can understand people thinking there may be short term share weakness. But this is not founded on the numbers. I will continue to hold.
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