I felt something like this would show and it did. Looks like the bosses weren't happy with over a million shares added to the Options already outstanding and ready to tank this stock. No, why not make it an extra 2.5 million shares. The shareholders in US stocks continued getting the shaft. For some reason Texas companies are the worst. The writing is on the wall.
We cordially invite you to attend our 2001 Annual Meeting, which will
be held on Thursday, July 18, 2002, at 10:00 a.m. at the First Cash
Financial Services, Inc. corporate offices located at 690 East Lamar
Boulevard, Suite 400, Arlington, Texas, 76011. At this meeting you will be
asked to act upon the proposals as contained herein
1. To elect one Director;
2. To ratify the selection of Deloitte & Touche LLP as independent
auditors of the Company for the year ending December 31, 2002;
3. To approve an increase in the number of shares available for
issuance in the Company's 1999 Stock Option Plan; from 1,200,000
shares of common stock to 2,500,000 shares of common stock.
4. To transact such other business as may properly come before the
Common stockholders of record at the close of business on June 7, 2002
will be entitled to notice of and to vote at the meeting.
If you were really just researching a stock and not a short you would have just moved on. Why do you keep posting?
Sorry, you are such an obvious short it's silly to say you're not and it detracts from any credibility you have.
"""""""""Adding 2.5 million shares is not good but those are pay in full options. Whoever takes them has to pay full market value"""""""
I checked, you're right. OK, looking better. Now is this as good as it looks??????? Am I missing something?????????
You can use Yahoo profile to find those numbers. MSN is not listing those numbers today for all stock , not just FCFS. Adding 2.5 million shares is not good but those are pay in full options. Whoever takes them has to pay full market value.
Dilutions are not good but you have to take everything into context. FCFS has excellent earnings even with those dilutions. As long as earnings meet estimate and growth is good FCFS should continue appreciate. Stock is very cheap at this time given the high growth of their check cashing business.
Who said I'm short? Did you ever think I was researching a stco that looked like it might be wirth buying but found some things that troubled me? That is exactly the case. I thought someone might explain these things. I was astonished to see the coincidence of the info no longer available. Perhaps you canj tell me the Outstanding Shares, Market Cap and why adding 2.5MM more shares does not concern you.
Why do you blame MSN problem on FCFS ?
Options cost shareholders 17 cents a share in earnings last year. If we deduct 17 cents from estimated 2002 earning of $1.30 we still get $1.13. which is still very good and FCFS is selling under 10 times earnings.
Go find something else to short, FCFS makes too much money for succesful short.
"The exercise price for each stock option granted under the 1999 Plan may not be less than the fair market value of the Common Stock on the date of the grant, unless, in the case of incentive stock options, the optionee owns greater than 10% of the total combined voting power of all classes of capital stock of the Company, in which case the exercise price may not be less than 110% of the fair market value of the Common Stock on the date of the grant. "
That doesn't sound bad, does it ?
Earnings estimate has been raised to $1.30 next year, that doesn't sound bad either.
FCFS now has 9 million shares outstanding, 3 million float. Add another 1.2 million options is 13 % dilution but adds $12 million to company cash (at $10 strike)which is $1.3 per share. So it kinda evens out.
Remember, the reason for the option is to allow management to buy low and sell much highier months down the road. Recent increas in trading volume indicates major buying activity over $10 . My guess is FCFS is being prepped to run up to $26 (PE ratio 20) where insiders can cash out.
IMHO FCFS could support 30X earnings if they continue to be met. In that case price target is $39.
Why not paste the whole section from the 10K and let everyone read and decide for themselves. My basic point, however, remains why does management feel they deserve to get a more thean double increase iin their Options. Is sounds to me like its time to stuff your pockets on the way out the door and the heck with the shareholders. I don't know if this is the case here but it seems to be what all companies are doing now. Here is some things pasted from the 10K. Also note the Earnings DO NOT account for Option grants, something the SEC is looking to change and a policy that honest, shareholder concerned individuals like Vanguard's Bogle called a deceiving and ridiculous way of accounting.
The Company applies the intrinsic value method in accounting
stock option and warrant issuances. Accordingly, no compensation
been recognized for its stock option and warrant grants. Had
cost for the Company's stock options and warrants been determined
the fair value at the grant dates for such option and warrant
Company's net income would have been reduced by $1,492,000,
$748,000 during the years ended December 31, 2001, 2000
respectively. Basic and diluted earnings per share would have been
by $0.17 and $0.16, $0.15 and $0.15,and $0.09 and $0.08
the years ended December 31, 2001, 2000 and 1999.
Weighted average grant-date fair values of options issued
$1.59 and $6.62 per unit during the years ended December 31, 2001,
1999, respectively, which were calculated in accordance with
Scholes option pricing model, using the following assumptions:
Exercise and Remaining Currently
Price Options Life Exercisable
----- ------- ---- -----------
$2.00 425 9.0 375
2.00 14 4.5 14
4.00 245 9.1 190
4.00 9 4.5 9
4.63 549 9.0 549
4.63 17 4.5 17
8.00 438 1.1 310
10.00 323 7.4 200
10.00 69 4.5 14
12.00 83 7.5 -
12.00 11 4.5 11
Very interesting is almost 1 million options priced in $8 to $10 range. Only about 1.5 options in the $2 to $5 range. About 100000 options at $12. So the company is indeed pricing options at market value or better. This is a lot better than companies that give options for free.
All info from last 10K.