hendragon
Member of DD Central
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Post by hendragon on Aug 22, 2017 11:25:16 GMT
Albeit that Provident Financial itself has contributed greatly to its own woes (if it ain't broke don't try and fix it) does this have any implications for lending in general? Particularly unsecured personal lending.
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Post by Deleted on Aug 22, 2017 11:48:17 GMT
Door step lending in a time when base level wages are not growing was always going to be a cleft stick. I was thinking about HAT (the country's biggest pawn broker) and since their lending is secured I suspect they will be ok. But I would worry about bottom end car loans, they have to be doubtful.
Does the country dislike what the Mail laughingly calls "Austerity"? Yes
Is private debts growing? Yes
Are majority of wages growing? No
Is inflation growing? Yes
That feels like a problem coming.
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dermot
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Post by dermot on Aug 22, 2017 12:05:50 GMT
Management seem to done a Ratner, to throw away 85% of the company value in 3 months.
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Post by gadget on Aug 22, 2017 12:53:22 GMT
There may be issues in consumer / subprime loans but provident's issues are all of their own making.
Will become an interesting case study of how a single terrible decision can all but destroy a company and how all businesses are really run by the people on the front line not the bosses in the executive suites.
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yangmills
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Post by yangmills on Aug 22, 2017 13:23:20 GMT
Can't see how this impacts anything since it's such a small company (it was only worth just over £1bn even before the stock price slumped). For some, however, it's just another slap in the face ...
Woodford's Summer of Woes Continues as Provident Slumps 76%
By William Canny
(Bloomberg) -- Money manager Neil Woodford’s unlucky run is continuing as Provident Financial Plc plunged the most on record after announcing it’s being probed by regulators, that its chief executive officer stepped down and that it’s scrapping its interim dividend.
Woodford’s funds are the second-largest shareholder in Provident with a stake of about 19 percent. The star money manager was also hit Tuesday by declines in AA Plc, online estate agent Purplebricks Group Plc and Allied Minds Plc.
A value investor like Warren Buffett, the 57-year-old Woodford Investment Management chief targets companies that pay dividends and are resilient to economic downturns. Woodford left Invesco Perpetual in 2014.
Provident was the fourth-largest holding in Woodford’s lead fund, the CF Woodford Equity Income Fund, at the end of June. That fund is down more than 5 percent in the past month. Provident, which also forecast a full-year loss on Tuesday, tumbled as much as 76 percent in London trading. Provident isn’t even the worst performer for Woodford’s funds on Tuesday. Sphere Medical Holding Plc plunged more than 80 percent, giving it a market value of 1.6 million pounds, after saying its working capital will be exhausted by late September without additional finance. Woodford’s funds are the largest shareholders in the company, data compiled by Bloomberg show.
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jlend
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Post by jlend on Aug 24, 2017 14:22:14 GMT
Up 13% today. Biggest rise on ftse100 by far.
Some people appear to think it was a little over sold yesterday.
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Post by yorkshireman on Aug 25, 2017 9:18:24 GMT
all businesses are really run by the people on the front line not the bosses in the executive suites. Read “ivory towers” for executive suites.
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