Kategori: top payday loan

While we acknowledge certain risks associated with subprime lending (read the risks section below), for reasons already discussed, we think OPFI deserves to trade at a higher valuation multiple than the non-fintech, slow growing lenders from which it is very likely to continue taking market share.

Given that we project 20% annual EPS growth for OPFI from 2021 through 2023, we suggest $12 as a baseline 12 month price target. We derive $12 by applying a 20x multiple to $0.99, the average of our 2022 and 2023 EPS estimates, and then applying a 40% discount due to anticipated dilution (read the risks section below).

Our bull case, assumes OPFI generates higher-than-expected origination and EBITDA growth and market perception substantially changes such that OPFI commands an even higher valuation multiple, more in-line with fintech players. With a matching its top-line growth rate, OPFI could trade as high as $25, 40x multiple to $0.99 that is discounted by 40% for dilution. Conversely, we think there is downside to our price target if origination growth is slower than expected or new state or federal laws cap the interest rates that OPFI can charge customers. Therefore, our bear case would be $5, representing 5x to $0.99 and no dilution discount as potential dilutive shares (and warrants) would be worthless. Devamını Oku

CLASS ACTION LAWSUITS WERE FILED

Between 2004 and 2015, 8 class action lawsuits were filed in connection with loans offered by The Cash Store, Instaloans and LoansAlberta Inc. across Canada. These lawsuits were filed against The Cash Store Financial Services Inc., and its subsidiaries (“CSF”), and a group of companies owned by or associated with DirectCash Payments Inc. (collectively “DirectCash”) which provided a series of products and services in connection with the loans.

On , Mr. Justice Hanssen of the Manitoba Court of Queen’s Bench approved a single class action that included all of the class members in all 8 actions (the “Class Action”). On , Mr. Justice Hanssen added DirectCash as Defendants in the Class Action.

The Class Action claims that the defendants’ loans had an unlawful structure and that members of the class were charged too much money for interest on their loans and for other fees on credit cards, debit cards, bank accounts, and for other items. Among other things, the Class Action asks the Court to order the improper fees and interest be returned to class members.

WHO IS INCLUDED

(a) all residents of Manitoba who, on or before , borrowed a “payday” loan from Instaloans, or a “signature” or “title” loan go to site from The Cash Store or Instaloans, where such loan has been repaid together with the standard “broker fee” charged by The Cash Store and Instaloans within 141 days of the loan advance, but excluding any loans that were the subject of a claim under the settlement reached in McCutcheon v. Devamını Oku