Amigo Holdings PLC (lon:amgo)
AMIGO – Another Comment From James Benamor

Amigo Holdings PLC Share Price
Grade:The Pink Grade - A Pure Slightly Informed Gamble, The Market Doesn't Like The Company But I Think That I Understand Why.
Title: AMIGO – Another Comment From James Benamor
Company: AMGO - Amigo Holdings PLC
Share Price Then: 13.7p
Author: Ian Smith
Date: Mon 24 Aug 2020
Comments: Over the weekend James Benamor has published another blog article calling for him to be CEO and how he can save the company and some Trump type language aimed at the FOS, FCA, various directors/ex directors and even some of the customers.

What confuses me is why, from JB’s Twitter

About Glen saying that he would leave It’s unfortunate that, when forced to choose a position he publicly chose ‘against’. But in my opinion, the chances that Glen would actually resign if this proposal was voted in are roughly 0%

Shareholders have given a strong message that they want me to return to the company. Last week the market showed that it valued Amigo with me much higher than Amigo without me.

Didn’t shareholders just speak forcing Richmond’s share sale, if you vote against me I will sell my shares and given the volume of shares recently sold who knows what is going to affect the price.

By the 21 Aug 2020 Richmond Group were down to a 14.66% holding, does he believe that those shares are now in the hands of people who will vote him in or is this just vanity posting and posturing?

Whilst I am sympathetic to the view that the regulators may be ignoring the fact that the borrower and guarantor did ask for the loan and passing the blame onto Amigo does seem unreasonable, the language of the blog is odd.

Amigo is a brand that stands for a mission: to fight the unfairness of exclusion that comes from an industry that judges customers on their credit history alone

The U.K. regulator’s actions have supported fraud by consumers against lenders,

Which does seem at odds with a 49% interest rate for a guaranteed loan, the rate was clear when the loans were issued so there is no issue there.

Private investors, some with a few hundred shares, others who have most of their life savings in Amigo, have been left in the dark by the previous board.

Of course declaring that Richmond Group would be dumping 60% of the company’s shares onto the market at 1% per day was in the best interests of who? I can’t even see it as being in Richmond’s interest, surely some private deals could have been reached.

There is a trading update due this Friday but I am not sure if there is anything new to disclose other than an update on the FOS/FCA discussions.
Read Count/ID: 110/13173

Buy/No Buy In A Nutshell
NegativesA combination of making risky loans and an unwillingness to tell complainants and regulators that the borrower and guarantor has the majority of the responsibility as they asked for and accepted the loan
PositivesNew management could get much more aggressive with people complaining that they asked for and were given loans but they can't afford them.
Initial Review Price7p
Last Review Price17.8p
Last Review Date21-Aug-2020
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