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.
