Q: hi 5i
Just heard that PRL will become their own bank in USA i believ and stock seems to be up on the news..... How does this effect the company going forward.....good news, great news?
Currently have a small position with a view to averaging down....is this being a bit short sighted or would you wait ?
Just wondering
thx
Just heard that PRL will become their own bank in USA i believ and stock seems to be up on the news..... How does this effect the company going forward.....good news, great news?
Currently have a small position with a view to averaging down....is this being a bit short sighted or would you wait ?
Just wondering
thx
5i Research Answer:
It is good news but not amazing news. It is a key development, and it is not always easy to get a licence. It may allow for lower funding costs over time, but this will take some time and it remains to be seen how the company will progress here. Details in the press release are light. But, overall it may lower funding costs and provide access to new potential clients, so is a net positive. We would be OK with some buying, but not because this news alone. It could still see some year-end volatility and we think investors will continue to need some patience here.