Would anyone mind giving me some colour as to why Morses Club (LON:MCL) is so cheap? From my initial understanding, the stock plummeted because Paul Smith sold shares just before the profit warning + a rise in claims that have hurt the bottom line by 20-30%. Has anyone modelled out these scenarios?
There's some potential legal issue to do with predatory loan practices. Basically, a lot of their client debt might be simply annulled by the government. I forget the details, I sold out quite a while ago with good profit, but I peek in now and then.
From where I'm sitting right now, this looks a lot like picking whether you gamble on black or red, so might as well attend a casino. You could win 100-300% but you could very easily lose 100% and that's not my cup of investing tea thank you very much.
The fact that the CEO absolutely flips the hell out, sells his shares despite the OBVIOUS insider issues prior to a profit warning tells you what the insiders think of their loan portfolio.
