THE ONE THAT GOT AWAY
Sometimes a stock gets away from you, and FinBond is just such a stock. Just over a year ago I was concerned about the growth going forward. The company operates in very short-term, small unsecured loan space and I felt that market was saturated with little real growth prospects. Further, any move into longer terms would hurt FinBond as short-term loans, which is a big earner for the company, means that it turns over its loan book almost four times a year. This generates serious cash f lows. But it has grown and still operates in the short-term loan space with the average duration being 3.6 months. That all said, the share price rush to 500c puts the stock on a demanding 58 times P/E, but so far it is justifying that rating.