This week’s month-end review for November is a little late, as I’ve been away for a couple of weeks enjoying some late season sun.
I seem to have dodged a nasty spell of wet weather up here in the north, but unfortunately one of the stocks in my rules-based SIF portfolio did take a bath.
Pawnbroker Hamp;T Group fell by about 15% while I was away, after the company said the FCA had carried out a review of its high-cost short term credit (HCSTC) business – often known as payday lending.
The review followed the introduction of new FCA rules in November 2018. This is particularly disappointing as in August the company said that “minimal changes” would be required to achieve compliance. It now seems this is no longer the case.
If you haven’t seen it already, I’d recommend a look at Graham Neary’s excellent analysis of this situation in SCVR on 18 November. I agree with his conclusion that the impact should be manageable.
I don’t intend to take any portfolio action as a result of this news and continue to hold HAT stock. Aside from this issue, HAT…
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