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14-06-2012, 10:12 PM
no need to thank me. I have been tricked by its non-core pawn business too. For the market cap, it is only when I read the newspaper that I realise it is $88m.
Pawnbroking is not that good a biz model, of the $108.5 loaned out they recognise the $8.50 as the revenue which causes a higher profit margin. If you were to base on ROE, their returns are much lower than that of our 3 local banks. Another factor is that their profit margin is capped by the Pawnbroking act which states a maximum interest rate of 1.5%
The prospectus has just been released today which means that retail investors will only have 7 days to digest the information, isn't it a bit too rush?
Pawnbroking is not that good a biz model, of the $108.5 loaned out they recognise the $8.50 as the revenue which causes a higher profit margin. If you were to base on ROE, their returns are much lower than that of our 3 local banks. Another factor is that their profit margin is capped by the Pawnbroking act which states a maximum interest rate of 1.5%
The prospectus has just been released today which means that retail investors will only have 7 days to digest the information, isn't it a bit too rush?