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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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One Savings Bank - Attractive entry point for buy-to-let lending specialist

June 2020

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

It’s a truism that good stocks get smashed along with the bad during periods of market dislocation and One Savings Bank (OSB), which specialises in lending to professional buy-to-let (BTL) landlords, is a good example. The shares have fallen from 460p to a low of 187p before a slight rebound to 256p, which is clearly pricing in Armageddon. However, One Savings enjoys high returns on capital, and a strong balance sheet, while its all share acquisition of smaller but faster growing rival Charter Court Financial Services (CFFS), has put it in a powerful position. The enlarged group grew underlying profit by 9% to £381m in 2019, while achieving a terrific 23% pro forma loan book growth to a mighty £18.2 billion in FY’ ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X