Q: Hello Team,
What are your thoughts on PRL here? Do you know why they don’t list out current assets and liabilities?
Thank you
What are your thoughts on PRL here? Do you know why they don’t list out current assets and liabilities?
Thank you
5i Research Answer:
PRL simply lists ALL assets and liabilities. We are not exactly sure the reason, but because its loans are short term, it tends to have short term liabilities as well. In addition, the turnover of loans is very high, with the majority less than one year so the majority would be classified as 'current' in a standard accounting presentation anyway. We think investors can start accumulating, being more aggressive if it declines further. Much of the decline we think relates to the market backdrop, fear, and smallcap aversion. The numbers themselves are pretty solid, and it now yields 2.96%. Note things may stay bumpy for a while but we think it is higher in 2 years.