Why the meltdown? Here is an article for today's LA Times - hardly that bad - does anyone else have a clue?
Los Angeles Times, February 24, 1998
Gardiner also likes First Cash (PAWN), which owns 64 pawn shops and manages seven others. Its forward P/E is 12 even though earnings could rise 22% this year, he said. The biggest name in the field, Cash America International ( PWN) , is growing at a slower pace but has a 30% higher P/E, Gardiner said.
First Cash is "growing faster and they have a lower P/E," he said. "That's what you want."
Cash America's retreat probably just do to impatience; there are numerous institutions that hold large positions in the stock. If any one of them decides they need some cash, then they probably sell off some shares. Based on today's activity, the selling and buying was probably institutional. Large block trade at near 100,000 late in day at 11.25. I believe there is large support at 10.75 to 11.00. I have been adding to my position any time the stock falls back to this level. Bought at 11.125 today. As far as the value of First Cash, I believe Cash America is a lot better capitalized and with the check cashing machine is probably more undervalued.
When Cash America drops nearly a point in 24 hours, I shudder, as I have over 2000 shares - a significant portion of my portfolio. I also saw that there was a large block trade yesterday, and today looks much better on lighter trading. Long term looks good - any chance Cash America might buy out First Cash?