Arrow Global (ARW)

Arrow Global ARW Logo

A UK based company engaged in purchase, collection and servicing of non-performing loans – Acquiring defaulted loan portfolios from financial institutions, such as banks and credit card companies, as well as retail chains, student loans, motor credit, telecommunication firms and utility companies.

30-Aug-2018 – 257.5p – £438.0m – PER 5.93

Interim Results For The 6 Months To End June 2018 – Underlying PAT up 10% to £28.4m, EPS also up 10% from 14.8p to 16.3p – On track to finish the year in line with market expectations.

Well, this is quite interesting in that according to Stockopedia (Normalised) EPS is expected to be up almost 100% this year (to 37.3p). Stockopedia has this down as an Adventurous Value Trap and I wonder if it is or not. But, basically, I just don’t know enough or have enough conviction in the numbers to take a risk here – I will remain Neutral for now.

8-Nov-2018 – 199p – £345.5m – PER 4.58

Results For The 9 Months To End September 2018 – Quite encouraging and expects to meet FY expectations.

I am Neutral here but may well give this a closer look now. As mentioned previously, according to Stockopedia (Normalised) EPS is expected to be up almost 90% this year (to 36.2p) – It’s flagged as a Speculative Value Trap and I am wondering even more so if it’s worth now speculating on.

28-Feb-2019 – 180p – £317m – PER 4.3

Preliminary Results For The 12 Months To End December 2018 – Record portfolio investments (£263.4m), Underlying PBT (EPS similar) up 13.3% (to £64.1m) with the Dividend up 12.4%.

Stockopedia still classes this as a “Speculative Value Trap” and I am still wondering if it’s worth speculating on! The Short interest though is rather off putting (at 10%+) but will these results perhaps trigger a squeeze. I think it’s just too much of a coin flip for.

8-Aug-2019 – 266p – £470m – PER 6.4

Interim Results For The 6 Months To End June 2019 – Total income up 6.5% with Underlying PBT up 0.8%, broadly confident for FY.

Was always interested here but was swayed away by the Short Interest and Stockopedia “Speculative Value Trap” classification. Up 100% since that view the Speculative label remains and the Short Interest is down from 10%+ to about 9% or so. Still, I remain interested but not a buyer.

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