Re: What do think of this article on Bxg
Thanks for the link, it was interesting. I thought it focused too much on the income and revenue, without looking at all into the expenses and loan rates. An important metric for these types of companies is the spread between the rate they charge the customers on notes, and the rate they are able to either sell the notes or the rate of their own debt.
For what it is worth, I agree that the street has not looked too closely at the impact the new accounting policys has had, and the company is currently undervalued because of the "artifical" hit earnings took. On the other hand, these types of companies are some of the hardest to understand and get a clear picture of their accounting. For me, I don't understand every detail and so I have to trust management (at least a little) that they know what they are doing.