11-03-2013, 01:13 PM
> Having say so, Maxi-Cash PE of 39 versus average banking and finance sector's PE of 11-12 is over
> -priced IMO. I assume bonus issue and high dividend payout ratio play an important role to push
> -up the valuation.
IMO, the pawnshop loan assets is likely to be more real and easy to convert to cash. I believe when u pawn a rolex watch, IF IT IS REAL, they will give you probably $75 for a $100 market watch. And then plus interest of 1% per mth, which ends up with 12% interest per year.
So the downside is less than a bank's loan books, especially business loans. A bank property loan, they want the business, they accept the developer's high valuations.
Their biggest expenses could the location of the shop they rent.
Anyone can confirm this?
> -priced IMO. I assume bonus issue and high dividend payout ratio play an important role to push
> -up the valuation.
IMO, the pawnshop loan assets is likely to be more real and easy to convert to cash. I believe when u pawn a rolex watch, IF IT IS REAL, they will give you probably $75 for a $100 market watch. And then plus interest of 1% per mth, which ends up with 12% interest per year.
So the downside is less than a bank's loan books, especially business loans. A bank property loan, they want the business, they accept the developer's high valuations.
Their biggest expenses could the location of the shop they rent.
Anyone can confirm this?