Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
As foreshadowed in our note on Oct. 16, 2017, we cease coverage on no-moat Thorn Group. We periodically adjust our coverage as necessary based on stock outlook, client demand, and investor interest. Following Thorn’s soft first-half fiscal 2018 result in November, we cut our fair value estimate to AUD 80 cents per share and changed our uncertainty rating to extreme from very high. We are increasingly concerned with the company’s operational, regulatory and earnings risk and uncertainty. Our ...
THORN GROUP LIMITED (AU), a company active in the Specialized Consumer Services industry, slightly increases its general evaluation. The independent financial analyst theScreener just confirmed the stock market behaviour of the title as moderately risky. At the fundamental level, theScreener confirms the rating of 0 out of 4 stars; given the more favourable environment, the title's overall rating is upgraded to Neutral even if it remains under pressure. As of the analysis date December 1, 2017, ...
As reported on Oct. 16, 2017, we plan to cease coverage on no-moat Thorn Group in mid-December. Thorn’s first-half fiscal 2018 cash profit of AUD 11 million was completely overshadowed by the perilous state of the balance sheet. Debt covenants were breached, goodwill of AUD 20.7 million written off, and assets need to be sold to remain a going concern. We are increasingly concerned with increased operational, regulatory and earnings risk and uncertainty. Deteriorating operating conditions, the...
We plan to cease coverage on Thorn Group in mid-December. We periodically adjust our coverage as necessary based on stock outlook, client demand, and investor interest. Thorn Group is no-moat-rated with a market capitalisation of around AUD 150 million, and a poor near-term earnings outlook. The firm is dealing with an Australian Securities & Investments Commission court case into its lending practices as well as a potential class action. The business is under price and volume pressure and w...
Following our post AGM management meeting, we downgrade our near- to medium-term earnings forecasts and valuation on the back of mounting operational and regulatory challenges facing Thorn Group’s most important division, Radio Rentals. Materially lower earnings forecasts result in our fair value estimate reducing 18% to AUD 1.35 per share for the no-moat company. Our negative view on the firm’s earnings outlook is supported by tougher operating conditions, and increased legal and compliance...
We retain our AUD 1.65 per share fair value estimate for no-moat rated Thorn Group post the annual general meeting. Following four months trading into fiscal 2018, the company still expects a subdued fiscal 2018 due to the impacts on the consumer leasing business from adverse publicity related to action taken by the Australian Securities & Investments Commission with respect to its responsible lending obligations, the recently launched civil class action against the company, transition to a ...
Two Directors at Thorn Group Limited bought/maiden bought 28,300 shares at between 1.205AUD and 1.210AUD. The significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company...
Our fair value estimate for no-moat-rated Thorn Group is lowered to AUD 1.65 per share from AUD 1.80 following the fiscal 2017 result. While the result was in line with our forecast and within the guidance range, management’s commentary on the near-term outlook was more subdued than we expected. At current levels, the shares are undervalued. We remain reasonably positive on the long-term earnings outlook. The business is now much leaner and focused on the core businesses following restructurin...
Our AUD 1.80 per share fair value estimate for no-moat-rated Thorn Group is intact after the resignation of CEO James Marshall. Marshall has been with Thorn for 24 years, including almost three years as CEO. He is leaving for personal family reasons, but will provide support for up to six months. His departure comes at a difficult time as Thorn deals with a class action relating to its "Rent, Try, $1 Buy" leases, with the size of the claim speculated to be around AUD 50 million. CFO Peter Forsbe...
Our AUD 1.80 per share fair value estimate for no-moat-rated Thorn Group is intact after the resignation of CEO James Marshall. Marshall has been with Thorn for 24 years, including almost three years as CEO. He is leaving for personal family reasons, but will provide support for up to six months. His departure comes at a difficult time as Thorn deals with a class action relating to its "Rent, Try, $1 Buy" leases, with the size of the claim speculated to be around AUD 50 million. CFO Peter Forsbe...
Thorn Group confirmed it was served a statement of claim in relation to past lending practices. This is not a good development coming just as Thorn was moving on from the resolution of its issues with the Australian Securities and Investments Commission, or ASIC, with respect to its responsible lending obligations with consumer leases. It is too early to speculate on the outcome, but we assume it will be a distraction for the business. Potential negative publicity surrounding the case and any ch...
Thorn Group confirmed it was served a statement of claim in relation to past lending practices. This is not a good development coming just as Thorn was moving on from the resolution of its issues with the Australian Securities and Investments Commission, or ASIC, with respect to its responsible lending obligations with consumer leases. It is too early to speculate on the outcome, but we assume it will be a distraction for the business. Potential negative publicity surrounding the case and any ch...
Our AUD 1.80 per share fair value estimate for no-moat-rated Thorn Group is unchanged post its slightly weaker-than-expected underlying fiscal 2017 profit guidance update. At current levels, the stock is trading at a 14% discount to our valuation. Potential headwinds from rising funding costs and bad debts remain, which in addition to exposure to weaker discretionary spending, are reflected in our high uncertainty rating. Despite the risks, attractive earnings upside is expected from growth in t...
Our AUD 1.80 per share fair value estimate for no-moat-rated Thorn Group is unchanged post its slightly weaker-than-expected underlying fiscal 2017 profit guidance update. At current levels, the stock is trading at a 14% discount to our valuation. Potential headwinds from rising funding costs and bad debts remain, which in addition to exposure to weaker discretionary spending, are reflected in our high uncertainty rating. Despite the risks, attractive earnings upside is expected from growth in t...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
No-moat-rated Thorn Group has completed the latest stage of its restructuring with the AUD 22.6 million sale of its receivables management business known as National Credit Management, or NCML. CEO James Marshall sought to restructure the debt recovery business shortly after his appointment in 2014, and while there have been operational improvements, profit growth has not been sufficient to retain the business. Thorn wrote off AUD 6.7 million in NCML goodwill and exited the Thorn Financial Servi...
Despite mounting regulatory pressure, no-moat-rated Thorn Group has transitioned into a successful consumer leasing and equipment financing business with solid first-half fiscal results supporting our positive long-term view. We maintain our AUD 1.80 fair value estimate with stock currently trading at a 7% discount to valuation. Potential headwinds from rising funding costs and bad debts remain. Our high uncertainty rating accounts for these factors, as well as for exposure to discretionary reta...
No-moat-rated Thorn Group has completed the latest stage of its restructuring with the AUD 22.6 million sale of its receivables management business known as National Credit Management, or NCML. CEO James Marshall sought to restructure the debt recovery business shortly after his appointment in 2014, and while there have been operational improvements, profit growth has not been sufficient to retain the business. Thorn wrote off AUD 6.7 million in NCML goodwill and exited the Thorn Financial Servi...
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