Kudos to you, Saul, on the fine performance of ELLI this am. At first glance up 14% due to revenues beating consensus estimates. Earnings apparently in line with guidance.
Jim
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Jim, Here’s another reposting of my most recent post from the ELLI board:
I’d suggest reading the CC transcript… It’s clear what they are doing. They had a 20% increase in revenue in spite of a 14% decrease in originations for the the year (due to refinancing drying up coming off the record low interest rates). They are signing up record numbers of new clients, including the bigger ones. They have a long, long waiting list of people who’ve signed up but haven’t been activated yet because they can’t do the implementation and training as fast as they are signing up clients and the bigger lenders are more complicated and take more training and implementation. As these new clients sign on, it takes six months until they are up to full speed so there is a huge backlog of new business coming on, and more added each quarter. Huge moat. No one can compete. Yes, earnings will be down next quarter or two but the market has good reasons for ignoring it.
JMHO
Saul
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Thank you, Saul, for the reposting from the ELLI board.
Your analysis certainly sounds as bullish as one can be about a stock….huge moat with virtually NO competition. Very few companies possess those advantages.
And a 20% increase in revenue in a down mortgage cycle…
As an emotional tv commentator likes to say: BUY! BUY! BUY!
Jim
Jim, one thing is still missing: growing earnings. At $29 I’d guess it’s not overpriced, but probably fully priced until the mortgage market improves a bit and we start seeing all this stuff come to fruition.
Saul
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