Compass Point said its been almost one-year since Signet began exploring alternatives, and the sale of $1.7B of consumer loans should not take that long or be that complex. The firm's analyst believes this indicates the economics of what is being offered to Signet is not very favorable. If the operations are ultimately outsourced, the company will still be heavily reliant on credit in order to generate sales relative to mall-based retailers. If the credit function is retained in-house, the firm believes the valuation of the stock should reflect a hybrid multiple between a subprime consumer lender and mall-based retailers.