Plum Capital on Yet Another Value Podcast! - $ATTO
And a quick $ELVT Update
Dear Subs, I have a quick announcement for next week. I am planning to go on Andrew Walker’s “Yet Another Value Podcast” series to discuss Atento (NYSE: ATTO) as an interesting value idea.
I wouldn’t be surprised if many of you are already familiar with Andrew - he does a lot of good work in the public domain, including the blog, podcast series and maintaining his presence as one of the Fintwit favorites on Twitter. If you have not yet crossed paths with his stuff, you’re definitely missing out and I encourage you to take a look.
We’re planning to record early in the week, so I’d imagine the episode will be available through the typical mediums (Youtube, Spotify, iTunes, etc.) in due course. Please stay tuned, and have a listen if you are following the $ATTO story or are interested in learning more. I’ll leave a link here for my recent writeup, for convenience’s sake:
Quick ELVT Update
I thought I’d also use this opportunity to update readers on $ELVT, as the Company had a very bullish press release on Thursday afternoon after market close.
https://investors.elevate.com/news-events/news/news-details/2021/Elevate-Credit-Eclipses-500-Million-in-Combined-Loans-Receivable-25/default.aspx
I’ve also done a quick Twitter thread for my initial take on the situation:
To summarize, the demand for subprime loans has increased sharply versus expectations as of 2Q earnings in early August. The Company is revising up the year-end estimate for loans receivable balance by 15% at the midpoint of the guided ranges.
I think this is a great development, as it removes one of the key overhangs for the stock, which is the tepid credit demand as consumers were flush with liquidity for much of 2020 and early 2021. In my view, the stock is creeping further into the “too cheap to ignore” territory with this update, and I have almost doubled my $ELVT position by adding on Thursday after hours and Friday during the day at levels as high as $3.7/share.
Disclosure
Plum Capital is long $ATTO and $ELVT common stock
Great interview! Do you disclose the position(s) you have the most conviction on?
Thanks for ELVT update. Do you have any view on how the repeal of 'true lender' rule might affect the business? Any ideas what % of loans is made in states with usury limits?