The share price of troubled lender Amigo (LON: AMGO) has surged by over 70 percent over the past month in anticipation of a more promising outlook to be presented in its Q3 update this Thursday.
While shares closed today at 10p and are still a long way off where investors would hope (and debut of around 300p), momentum has been building in the previous weeks as it picked itself up from lows of below 6p.
Amigo is currently continuing to battle a complaints backlog due to a FCA investigation and has paused new lending.
However, despite the continued difficulties it has reassured investors over its liquidity and has made sweeping changes to the board recently.
Enter the daredevil: Evil Knievil was spot on about Boohoo, will he be right on the money with Amigo shares too?
Investors have been let down by Amigo multiple times previously, but received a confidence boost when daredevil trader Simon Cawkwell a.k.a ‘Evil Knievil’ revealed he has bought in at 10p and it expects to double or triple his money in the coming months.
“I have bought circa 3m AMGO at 10p and expect to double or treble my dough by 30th June 2021.”Evil Knievil, Master Investor Trading Diaries
Mr Cawkwell is known in the city by his respective nickname due to his daredevil trading style. Many will note that he got Boohoo’s governance concerns spot on ( Evil Knievel takes a big short on Boohoo shares as warns management will come unstuck ).
To cut a long story short, the expectation is that should the pause come off lending, then Amigo will be ready to go again.
With a m.cap of £47m, a positive update from Amigo could see its m.cap increase substantially.
However investors will naturally be cautious given a string of previous disappointments!