Seeing Opportunity in Takefuji -- Japan's Most Hated Value Stock [View article]
Pascal, thanks for leaving a comment and stressing the importance of the threat of reimbursement costs. Indeed, this is a risk for investing in the consumer lender stocks. And the enforcement of repaying "past" excess interest payments received is worrisome. It looks like UBS warned today of the possibility of further downward revisions during the remainder of the second-half of the fiscal year.
I still see an opportunity here and agree, as you put it, "there is a great value opportunity for daring investors."
I have increased my position in NIS Group (NYSE: NIS) following its downward revised forecasts and what I believe a bottoming of the stock at current levels. No doubt this is speculative given the uncertainty, but I like NIS's diversified financial services businesses, and lesser exposure to consumer lending, even though it will suffer from the reimbursement costs.
For disclosure purposes, at this time I still do not own a position in Takefuji, nor do I own any shares of other Japanese consumer lenders.
Seeing Opportunity in Takefuji -- Japan's Most Hated Value Stock [View article]
I still see an opportunity here and agree, as you put it, "there is a great value opportunity for daring investors."
I have increased my position in NIS Group (NYSE: NIS) following its downward revised forecasts and what I believe a bottoming of the stock at current levels. No doubt this is speculative given the uncertainty, but I like NIS's diversified financial services businesses, and lesser exposure to consumer lending, even though it will suffer from the reimbursement costs.
For disclosure purposes, at this time I still do not own a position in Takefuji, nor do I own any shares of other Japanese consumer lenders.