[ACCESSWIRE]
NEW YORK, NY / ACCESSWIRE / January 12, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on IEG Holdings Corporation (OTCQX: IEGH).
The report is available here: IEGH January Update Note.
Highlights from the report are as follows:
IEGH reiterates guidance for operating cash flow in 2017
In a December 14, 2016, letter to investors and stakeholders, IEGH CEO Paul Mathieson issued a positive outlook and reiterated that the company plans to implement strategic cost cutting opportunities that should position IEGH to generate positive cash flow in 2017. Mathieson also stated that the company would likely initiate a small, ongoing dividend in April after the release of 1Q17 results, and explore other capital management activities such as stock buybacks.
IEGH enters Ohio; loan volume continues to rise
IEGH continues to expand its consumer loan book. According to the company's results release, since January 2015, cumulative loan volume has increased by 154% from $5.5mn $14.1mn as of December 13, 2016. In our view, loan volume provides key insights into the health of IEGH's business, as it is a driver of revenue and potential profitability. IEGH management noted that loan volume is affected by the performance of mramazingloans.com, the cost of new leads, and the pace of geographic expansion. IEGH continues to expand, entering Ohio - its 19th state - on December 22, 2016. IEGH's mramazingloans.com now offers loans online to a coverage area of approximately 20mn people representing 62% of the US population, and the company appears well on its way to reaching its goal of 25 states and 75% of the population by mid-2017.
IEGH to raise debt; announces tender offer for OneMain
We see access to capital as an important business factor for IEGH, as the company can use liquidity to grow the size of its consumer loan book, thereby growing revenue and potential profitability. IEGH has launched a private offering of up to $10mn in 12% unsecured notes due December 2026 in a self-underwritten basis. The company also announced an intriguing corporate action, in which it has initiated a tender offer for OneMain Holdings, Inc., a multi-billion dollar NYSE listed provider of consumer finance and insurance solutions. As part of the offer, which expires February 6, 2017, IEGH is prepared to offer two shares for each tendered share of OneMain (NYSE: OMF). IEGH management believes a combination of the entities offers an opportunity for synergy by combining IEGH's online business with OneMain's largely offline business, as well as cost synergies. OneMain is one of the largest consumer finance companies in the United States, and initially its Board of Directors has rejected the offer and declined to enter into negotiations with IEGH.
Price target of $10.50 for IEGH
Our price target for IEGH is $10.50. IEGH is a high risk, high potential reward company in the consumer finance sector. IEGH has several potential catalysts including growth, guidance for profitability in 2017, and ongoing strategic corporate finance initiatives.
Please review important disclosures at www.seethruequity.com.
About IEGH Holdings Corporation
IEG Holdings Corporation (IEGH) ("IEG Holdings") provides online unsecured consumer loans under the brand name, "Mr. Amazing Loans," via its website, www.mramazingloans.com, in 19 US states. IEG Holdings offers $5,000 and $10,000 loans over a term of five years at a 19.9% to 29.9% APR. IEG Holdings plans future expansion to 25 US states by mid-2017. For more information about IEG Holdings, visit www.investmentevolution.com.
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
[email protected]
SOURCE: SeeThruEquity
