Market's view on Inter. Pers.
Published on April 2024
- A stock watcher joined the investment group, considering the Polish situation managed and anticipating a satisfactory continuation of business performance alongside an impressive dividend yield.
- Discussion on the basic difference between bonds and stocks, highlighting the long-term bet nature of both but with stocks offering potentially indefinite holding periods.
- International Personal Finance (IPF) faced a delay in publishing full-year results due to a Polish regulator’s directive affecting credit card issuers. However, Peel Hunt reinstated a ‘buy’ recommendation post-results release based on strong operational performance and a modest impact from the Poland issue.
- There was a strong investor presentation which boosted confidence among viewers, indicating a positive outlook and potential benefits from forecasted falling global interest rates.
- A stock watcher mentioned the attractiveness of IPF’s retail bond paying a 12% coupon, highlighting a possibly better risk/reward compared to equity.
- Concerns were raised about the significant potential profit impact from Polish operations, which constitute a small percentage of total receivables.
- Discussions on retail bonds versus preference shares, with some stock watchers favouring preference shares due to better risk/reward profiles in current market conditions.
- Various retail bonds held by watchers were discussed, assessing their performance and highlighting individual cases of struggle, rebound, and potential default scenarios.