KLAR is a UK company, so we do not follow it closely. But it is $13, down from a $40 IPO less than six months ago. The company reported a 59% increase in loan loss provisions. Sure, quarterly revenue rose more than 38% to $1 billion in the Q4, but that means little with a $250 million loan loss provision. In comparison, GSY has much much lower provisions. PRL has provisions higher than GSY but lower than KLAR. PRL has had higher growth. Neither PRL nor KLAR has been through a real recession as a public company. GSY has. We also note KLAR is still exceptionally expensive on a valuation basis, whereas the other two are very cheap. The most interesting thing on KLAR right now is the short interest. It is so high at 49%. The possibility of a short squeeze is thus high. But.....the shorts have been bang-on so far, and in an uncertain equity and credit market, considering results and extreme negative momentum in the stock, we do not think this alone makes it attractive. We would see it more as a SELL/AVOID right now.
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