Top Bulls Reasons To Buy — Vote below!

Add a New Bulls Reason

Company: EZCORP (EZPW)
Current price:
Headline: (100 character max)
Analysis:
Cancel
100%
agree
2 votes

  Pawn Lending and Other Financing will Grow as Credit Availability Plunges

I have been on board EZPW for most of the year and expect it to continue to increase in price. It should be one of the few companies to actually grow earnings in 2009. I love the pawn business (very low LTV, highly regulated) and accept the other businesses (typically pay-day lending).

The company has an extremely strong balance sheet. In addition, it carries an investment in a publicly-traded UK company well below current market value. The growth will come from better trends in pawn (and two recent acquistions) and moves into other consumer lending areas outside of pay-day lending, including auto title loans and installment loans and international expansion (Mexico and perhaps Canada). This is a dirty business that requires superior management and business processes, and EZPW has demonstrated it. In an environment very short on the supply of near-term credit, EZPW and some of its peers should do quite well.

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki