Full disclosure, I got into this stock at low 60's and averaged down into the low 50's which has led my investment in CONN down 40%. I lost a chunk of change when I sold half in the high 40's this year. Still have some options but will dump at the first sign of stock appreciation. I guess I am a bagholder at this point. Did not graspe the lending and growth in loans until it was too late.
Back two quarters ago, CONN noted that their loans past due over 90 days had increased which IMO alerted investors of the long term danger investing in a company that has over $1B in Sub-Prime loans. The market remembers what happened in the housing market with this kind of lending and you now see the affects this has had on CONN stock price. Also, CONN has some very aggressive collection practices that accompany SUB-Prime loans which are being questioned through social media networks..
Your correct, but why is this new information? I bought some appliances years back from Conns using their credit and was quite aware that they ran the company on loans. So basically, this company should flat line and the only beating will come when earnings are called.
insiders purchased shares from free options they awarded themselves look at insider trading
Management dislosed their model. Sell bonds, buy goods, sell goods with high margins, report tremendous profits, but only collect 20% of sales, loan 80% to Sub-Prime customers. Market does not like this model long term.
Why invest in a company that leaves you in the dark. What a bunch of bologne, and Wall Street called Conn's The Greatness. More like the Broke-ness. So within 3 weeks Conn's stock goes from 52 to now 40. Either Conn's is covering up some upcoming lawsuits or this company did not provide accurate information to the investors.
•The latest research shows unequivocally that sales tax avoidance has been a competitive advantage to e-tailers.
•Sales tax reform is coming, with a major step forward possible in a matter of days.
Pure e-tailers have the most to lose. There is really no question that tax avoidance has been a competitive advantage that is likely to go away sooner or later. An even more recent study than the one cited above reaches the same conclusions. This category includes Amazon, but the situation is probably far more dire for its smaller competitors like Overstock, and Blue Nile
Conventional retailers have the most to gain. This is particularly true of those who can successfully implement the "brick-and-click" model that combines online shopping with physical stores. While the sales tax issue seems quite certain, I think the advantages of online comparison shopping, combined with delivery or local pickup and return are equally obvious. Wal-Mart is tops in this category, but other tickers include Best Buy (NYSE:BBY), Target , HH Gregg (NYSE:HGG), and Staples (NASDAQ:SPLS), to name a few.
has anyone looked at the insider trading? Looks like the officers have a pretty good money making scam getting options a zero and selling for multi millions. who is watching the hen house?
An amazing 84.4 percent of the O/S is owned by Institutions and Mutual funds as reported on CNBC
This does not include all the employees who own shares; long term shareholders and other smaller institutional and mutual fund positions..at the bare minimum, this would be an additional 7% of the O/S
This means at least 90%+++ is owned by strong hands YET 35% OF THE FLOAT IS SHORT!
THIS MEANS THAT SHORTS CAN'T FIND ANY AVAILABLE SHARES TO COVER..EVEN IF THE SHARE PRICE MOVES TO 70, MOST OF THESE FOLKS ARE STILL NOT SELLING
Frankly, I do not know how this situation is going to be resolved....shorts will eventually have to cover but at what price?? There are no shares for them to cover!!
Lets see what the short interest is...was this a short attack or was it actually selling?
My opinion is the company continues to hit on all cylinders (opened 7 units very recently, remodeled and closed others) and the short sellers just spent a ton of money to creat the appearance that there are sellers..you can see it in the multiple trades at very low volume to drop the stock 50 cents at different periods of the day, especially when the stock begins to move
The company performed impressively after the 50% haircut -bringing back down delinquencies and refinancing debt. shorts bet wrong..now they are basically articially controlling the stock with no apparent business case...this is very dangerous strategy..one positve announcement by the company and this could spike into the 60's IMO
Charts I think are meaningless when a stock is this severely undervalued...anything can happen.
They tipped off at the road show they were comping 20% for ths qtr..even if things fell off a cliff, we would still see 10%..and I'm pretty sure things are still chugging along
9x forward earnings? 5x forward EBITDA with 35% earnings growth rate??
very dangerous game they are playing indeed