Longer Term

[#1]

Hi All I am from more of a mathematical quants background but I am looking for some longer term analysis of BFS. Those CA(SA)'s out there, what are your thoughts on this companies longer terms projections. Good Bus model, prospects of stellar growth, cash generation etc?

[Harathke]

The fact that so many companies are coming out pushing low-income credit growth means that this sector's margins are going to start thinning and the growth rate overall will go up, but go down for each firm individually. The fundamentals are very good and the management are excellent, but the industry is coming under greater and greater governmental influence due to credit acts and the forcing of the bigger banks and insurance agencies to take on the lower income market's debt needs. This also spreads the industry's growth thinnner. To answer you specifically, I don't know. But, Blue would definately not count as a value investment. Maybe a growth play, but those are always more risky.

[#3]

Much appreciated!

[topgun]

Hi Mer. If you are looking at a company trading in the microfinance space, consider Afdawn. Recent results indicate high growth with the new Credit Act likely to benefit their consumer education business. Also priced much more reasonably relative to projected growth rate. Forward PE below 10.