I was a little disappointed in the numbers from the pawn store operations - management claimed bad weather in 4th quarter. I am wondering if the great economic conditions are not all that good for pawn shops - perhaps the stores do better in a recesison. Just a thought.
Pawn shops are a very well balanced business and are generally not effected by economic conditons. During slowdowns, the loan side of the business trends up and during goodtimes, the inventory liquidation side of the business does well. As an 8 year employee at PWN, I saw this cycle repeated several times.
The ice storms that came through Texas, Tenn, etc before Christmas really hurt the stores in that region. That area also has a high concentration of stores. I look for the earnings growth to be pretty exceptional in the next 12 months. I think this is a great buy here @ current levels.