Money3 Corporation (MNY) is a financial services company that provides secured automotive loans as well as secured and unsecured personal loans. Founded in 2005, the company’s geographical segment includes Australia and New Zealand, generating maximum revenue from the Australia segment, which provides lending facilities generally based on the provision of an underlying asset as security, referred through a broker.
“Despite COVID, they were able to recently deliver record cash collections, and their NZ operations continue to see very strong growth,” Michael said.
“It’s a business that should continue to do well from here and the chart (below) is now giving us a buy signal,” he explained.
After rallying strongly from the COVID lows under $1, the MNY share price managed to get back to the $3 area in early December.
“As this was about the same level that it peaked in 2020, we naturally saw some selling kick in. What was encouraging however, was the fact that the share price didn’t fall away too sharply. It spent the next 4 months trading sideways instead. This was a sign that any selling pressure was being met with equal buying pressure.
“Then in the last few days, we have seen MNY break to a new high (circled). This means that most of the sellers have cleared out of the way and MNY is ready to resume its uptrend. Whilst the stock is still near that breakout zone, it represents a buying opportunity here as it is still near the start of its next uptrend phase,” Michael said.
Money3 Corporation (MNY)
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