Hi guys,
This thread is getting a little slow, so I thought I would toss a new stock in the pot.
FAIR ISAAC & CP (NYSE:FIC) AKA FICO is a thinly traded stock with an 8MM float, P/E of 27.4, EPS of $1.68 and a recent $0.08/share dividend. Plus, they have $30.5MM in cash.
Since they are trading near the 52 week high, 45 5/16 vs 46 1/2, I see no compelling reason to buy right now, and I would be interested in what the TA wizards think a good entry point would be be for a long-term hold strategy.
What do these guys do? Well, everytime you apply for a loan -- car, house, credit card -- the lender pulls your credit report and a FICO scorecard. The FICO scorecard is a prediction, based on the information in your credit report, of the probability that you will go bankrupt. Most lenders have pass/fail criteria which is entirely based on the FICO score.
There is more.
You know those pre-approved credit card mailings you get all of the time <g>? The names on these lists are also (mostly) selected using FICO models. The most profitable lists for the credit card companies predominantly contain names with near-bankrupt scores because these are the people that respond to these types of mailings and make just enough money to support the new debt. People with no debt and outstanding credit do not respond to pre-approved CC solicitations. People with some debt and marginal credit respond in masses. FICO sells these lists to CC companies each time a mailing is done.
These guys dominate this niche in the credit industry and there is little chance that anyone can beat them out in the near future. Take a look, let me know what you think.
Regards,
Tom |
