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This might be worth taking a punt when it gets to 5p IF the company give a decent update on complaints subsiding.
Hi Jimmy, no I don't have any special information on the complaints situation. I'm just trying to read between the lines of what the company have told us. As per the last agm update, complaints are still sky high, I don't believe the company anticipated this, thus the provision is likely to be to small. If you look on social media and look for what people are saying about amgo they're all saying the same thing - people are still claiming in droves, payouts are being delayed but still being paid out in the end (indicates staff can't keep up with work load), most worrying of all though, customers are being offered a discount on their loans if they settle now. This is effectively the company writing down the loan book. Why do this when they have £145m in the bank? Is the company still desperate for cash, or are they just desperate to settle with certain customers who will likely win a claim? Either way its desperate stuff and indicates things are worse than we're led to believe. Another point being, why will the company not give us all the information on claims numbers? This just adds further suspicion.
The bod could do the company a massive favour right now - go and buy a chunk of the company's bonds back. This would save millions of pounds and makes so much sense in this environment. But the bod are not doing this, why? Can the company not afford to spend any of the £145m? It just adds more suspicion to what the BoDs are thinking.
Your all missing the facts here. The FCA investigation going back to Nov 18 is correct, but that's not the issue here, the main issue is the complaints with the FOS. These complaints can go back as far as 6 years.
Im sorry but Everest are going to be wrong about this compensation total. Complaints to AMGO are still at sky high levels, they haven't receded as per the last update, no one predicted they would last this long. In the next update the company will announce an increase in the provision, just wait and see.
Best case scenario here is amgo survive but with a much smaller loan book, £250m max, and that's not taking into account the inevitable fca fine early next year.
Its just like what JB said, the company are STILL commiting slow motion suicide.
Claims can go back as far as 6 years and the 8% interest charge is per every year since to loan was taken out. The company's £145m means nothing, they've simply taken that value away from the loan book, it's not even amgo's money, it's the banks money. They HAVE to start lending ASAP or the loan book could very well default (probably inevitable anyway), even if the macro factors are not in the company's best interests, they HAVE to start lending soon, it's desperate stuff.
Take into account the company is writing customers debts off to raise cash at a fraction of its original value, would indicate the company is in a much worse position than its letting on. Thus why they don't release any numbers on complaints.
There's a seriously real chance amgo will be bust in 6/12 months time.
Chicken, it's all about the complaints with the FOS. Since Q1 complaints have not eased up, they are still flooding in. No one knows how much they will cost the company in the end, but its going to be in the hundreds of millions for sure, maybe more if the complaints don't stop soon OR the company moves for a Judicial Review (what JB and GC wanted, but what the current bod didn't want).
The paying down debt thing is misleading. The company has been forced to put ALL customer receipts into its lenders account to bring the balance down. Why would the lender require amgo this?....... Because they're worried amgo may go bust soon.
For AMGO to go to 20p would mean thee company would be valued at £100m. Why would a company with such fatal issues and with a serious chance of going bust be valued at 20p?
Yes Toe it's the regulators fault, the FOS are compete mongaloids.
But the main question here is - why aren't AMGOs bods fighting the FOS?
Toma good question. The company MUST start lending ASAP as its loan book will have wound down to much and the damage will be done. The nature of a lender like amgo means it cannot afford to not be lending for a prolonged period.
I imagine lending will be miniscule, they won't see previous lending volumes for a good 2/3 years if they survive imo.
All the vreq means is they will have caught up with the backlog, it doesn't mean there's no more complaints coming in. What does it tell you when it takes them months and months just to catch up to the backlog?
This ship has a leak.
Yeah great advice Richmond, the more people you block the less avenues of information there is
*face palms self*
Why would you not listen to what I'm saying? Why would you ignore such honest well researched facts? Why dismiss the truth? It's your money on the line here, don't you want an honest clear picture? You lot baffle me sometimes. Ever heard the saying you can lead a horse to water but you can't make him drink?
Ps whoever this hillman character is, I assure it isn't me.
In the Q1 results they mention a substantial rise in complaints volumes, in the agm statement they mention there has been no material change in complaint volumes, this implies complaints are STILL flooding in.
This could very well be fatal if complaints do not easy up soon. MASSIVE gamble.
Expru, that's a perfectly reasonable point of view to have.
It's very convenient for the FOS that JB did not win the vote. Can you imagine the stink he would have created for the Regulators/Gov had he opened up a Judicial Review.
I think there's darker forces at work here.
Seamus, the FOS are complete morons, they don't mind making perfectly legitimate companies bust at all. This is why AMGO need to get the Gov on their side and sort the FOS and its extremely harmful practices ASAP.
Steve, no doubt GJ is a solid man, but it's not the FCA amgo should be worried about, its the FOS who are likely to ruin amgo by upholding to many claims. JB and GC both wanted a judicial review to deal with this issue, why? the rest of the board clearly don't want a judicial review, why?
No matter how good a guy GJ is, AMGO WILL need to go down the judicial review avenue as there are just to many claims being upheld.
£50k purchase isn't exactly the biggest vote of confidence I've ever seen. Maybe if he bought £500k or £1m then ok, but £50k is just not that special.
It absolutely is the truth. The sp has gone up 7% today (no one's mentioning the 50% drop over the past month are they) and your all acting like the recovery is on.
Everyone talking about 20p 30p 40p etc, just wait for the full complaints £ numbers to come out, the company could genuinely go into liquidation, at best end up with a very small loan book.
£50m market cap may start looking expensive soon.
Then again I can see this hitting 12p tomorrow
Someone is also selling, it will be back to 8p within no time.