Happy Friday!

Today I'm thinking of writing about the final results from ITM Power (LON:ITM), the management update at Provident Financial (LON:PFG), and the half-year report at Camellia (LON:CAM). Let me know if you'd like me to write about something else, too!



Provident Financial (LON:PFG)

  • Share price: 908.75p (+21%)
  • No. of shares: 148.2 million
  • Market cap: £1,346 million

Consumer Credit Division Management Update

A huge boost in the market cap today for this troubled lender, though of course the share price remains significantly below its pre-profit warning levels.

The CEO had already walked the plank, and now the MD of the home credit division leaves too, being replaced by a returning former MD of the entire consumer credit division (CCD).

Perhaps this will herald a switch back to the former model of self-employed agents? No matter what course of action is taken, the disruption to collection agents is likely to continue in the short-term. But returning to a manager from the good times suggests to me that Provident might go back to the business model that was working rather well up until recently.

It's an interesting special situation, since the non-home credit division parts look rather valuable and difficult to replicate (I'm thinking particularly of the bank when I say that). So even if the home credit division is worthless now, as estimated by JP Morgan, the shares are still potentially interesting.

Computacenter (LON:CCC)

  • Share price: 999.25p (+13%)
  • No. of shares: 122.7 million
  • Market cap: £1,226 million

Half-year report

This is (strictly speaking) outside our remit here at SCVR, but in response to requests I will say a few words on it!

Also, it's a nice change to talk about shares going up from time to time.

Computacenter provides a fairly wide range of IT/computer services for businesses: security, data storage, networks, etc.

We haven't covered it in the Small Cap Value Report before (for obvious reasons) but Ed included it in his Top Stocks for 2017 (see here) thanks to a StockRank at the time of 96, and indeed it's been in his list of top stocks since…

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