This is the Yahoo! Message Board about PWN, where you can discuss the future prospects of the company and share information about it with others. This board is not connected in any way with the company, and any messages are solely the opinion and responsibility of the poster.
I'm usually a cheerleader for Mr. Payroll
checkcashing machine, but in today's WSJ - "Heard on the
Street" there is a large article about Southland (7-11
stores). Here is a quote about their experience with the
checkcashing machine -
Southland's recent moves. One
initiative Mr. Rowe cites as
disappointing: an Austin
test run of automated teller machines that
checks, issue money orders and dispense prepaid
cards, among other things. Southland's
Mr. Keyes says he is pleased with
results, but the company hasn't yet decided on a
rollout. Mr. Rowe, however, hasn't been impressed thus
far. "Not one
store has told us they think this has
added a single penny to same-store
Further, Mr. Telzrow says, while the venture
could prove beneficial,
the initial sign-up
procedure for check-cashing customers takes too long
about 10 minutes. This raises questions about whether
are worth the cost, which he
estimates at about $80,000 each. The
company declined to
confirm the cost.
Hmmm. . . .
I believe this is positive news. Everyone has
about competition and what sets PWN
apart. This is good
evidence that the analyst may be
correct. Mr. Payroll appears
to be more cost efficient,
quicker and their tests results appear to be positive.
Otherwise, why would Wells Fargo, Crestar, Racetrac, etc.
,etc., etc. wast their time.
In Hoak Breedlove Wesneski report dated July 27,
1998, they have a section on competition which I
believe addresses your concerns. The two big problems for
the Southland machine is cost $80,000 vs $ 55,000;
and the approval/signup process takes too long
compared to Mr. Payroll. I read the Wall Street journal
article, and believe it is encouraging from the standpoint
the competition may be dwindling.
Very good news for Mr. Payroll. That pilot was
done with a competitor of the originator of the
automated check cashing machine. Check your facts. Mr.
Payroll continues to impress with high usage rates and
Check out THIS from a couple of days
I got in at 11 1/8 and I'm certainly looking
forward to a good ride. This is a great company.
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
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.
Miros And Mr. Payroll Forge Partnership For The Next Wave Of ATMs; Face
Recognition Technology To Be Integrated In Automated Check-Cashing
WELLESLEY, Mass.--(BUSINESS WIRE)--Feb. 9, 1998--Miros, Inc., developers of
the world's easiest and most reliable personal identification systems, has
expanded its partnership with Mr. Payroll Corporation. Mr. Payroll, a wholly
owned subsidiary of Cash America International and the leader in automated
check-cashing and ATM services, has agreed to enlarge its licensing of Miros'
TrueFace engines. The agreement is a result of overwhelming customer
satisfaction and increasing demand in new application areas. The technology,
currently in use in over 35 check-cashing machines since June 1997, will be
integrated into all upcoming installations over a three year period. Miros'
patented face recognition technology enables Mr. Payroll customers to quickly
and securely cash checks by verifying their identities.
Under the terms of the agreement, Miros will provide Mr. Payroll with the
TrueFace software as well as ongoing support and maintenance through the year
I think check cashing michines will become
perfect for people like myself who don't have enough
credit nor other credentials to obtain a checking
account from a bank or credit union. A person would need
the proper credentrials in order to get cash or to
deposit a check in the system. I think check cashing
mac.will become the answer to many of our check cashing
I agree that this machine seems like a very good idea. However, on their fundamentals only, PWN looks like a great buy with a large insiders holding, the big buy back of their shares last year (15%) and their cash generating ability as they can leverage their balance sheet a lot more in line with banks. By the way, they seem to have understood that they were making their money on their loans as they are moving their inventory of pawned items a lot faster than in the previous years.
The board has been silent as of late. PWN is
sliding, today on higher than average volume, and no news.
What gives? Would one of you smart people throw an
opinion out there for the rest of us to absorb?
We had enormous volume there in mid afternoon.
Today's action should tell us which way the stock is
going near term. I can see no fundamental reason for a
major selloff, but then what do I know. I'm an
I certainly don't qualify as smart, as I am long
PWN. I hope it isn't a replay of the 4th quarter last
year as word slipped out that the fourth qtr was going
to miss the numbers.....but when you have a
management as incompetent as this one, you can never rule
Today's announced alliance with a Virginia bank
is another indication that the route Mr. Payroll is
going to go will be joint ventures (such as Wells
Fargo) and alliances in which some of the costs (and
profits) are shared. This is probably the most cautious
and prudent way to go. I think it is a good
indication that new banks and companies are signing on to
this project. I still can't believe that there isn't
more (or any) competition in this type of machine -
isn't Diebold or someone going to get into the act?
I agree that alliances are a more likely strategy
than a spinoff.
I caution everyone not to get
too excited about the Crestar announcement. Crestar
is being acquired by SunTrust. SunTrust may be the
most conservative bank in the world; and, they almost
exclusively target the affluent. I can't imagine them
a big investment in a check cashing machine
for the "unbanked."
If you review the news releases from a few months
back, you will notice that things began to happen with
Mr. Payroll just after the announcement of Dan
Fehan's move from President of Cash America to Co-CEO of
Mr. Payroll. Coincidence? I think not.
Fehan went to CA they were a 150 shop national chain.
They currently have approx. 475 shops worldwide.
don't know if you all got your paper annual
report yet, but in all my years, the Feehan open letter
was one of the most forthcoming I have seen. Really
acknowledged the problems, and didn't try to gloss over.
Especially interesting comments on the economy - pawn
operations don't do so well in a full-employement booming
economy, but expect customers to come back when things
The report give me confidence that
Feehan will make needed changes. Any other thoughts?
Have other people recieved the report?
Not to beat a point ot death - but how does a
full-employment economy slow down pawn? There is an old saying -
you can lead a horse to water but you can't make him
drink - wouldn't that be the same as giving a "pawn
customer" a job or a raise? Does one expect that simply
becasue the "pawn customer" now has more money s/he has
now learned that art of managing their money? I think
not. I for one feel that Cash and EZ have taken the
"Good Economy" excuse way to far.
I received my report yesterday and read his
letter last night. It is one of the best CEO letters I
have ever read. It did wonders for my confidence in
What I am trying to do now is
ferret through all of the accounting to figure out how
much cash the ATM venture sucked up last year.
I have good things about these guys and that they are making great inroads...Seems like they are "demo-ing" lots of equipment to banks, etc...My concern before buying is that Diebold Corp is the leader in this tehnology and has landed some big contracts w/ BancOne who PWN has been courting....I would like to buy into this company, but am not sure they can compete or hold on for the long haul...any comments...???
Who else might be familiar w/ a Diebold comparison??
The machines that Diebold recently sold to Bank One were cash dispensers, which I do not believe will dispense cash if I put
in a check. If Diebold has a check cashing machine, I would like information on it. I have a feeling that Diebold's machines
give cash against ATM cards, credit cards, etc. I would assume that the normal person who would use a check cashing machine would
probably not have a checking account or a credit card. I believe that Cash America and Diebold at this point are not trying to
attract the same customer base. If I'm wrong, please let me know. By the way, Cash America's machine is in 11 Wells Fargo bank
lobbies in California and they are also testing the machine, along with Bank of America and Krogers in 3 Kroger stores. There are
34+ machines in place with 60 more on order. I would assume that the 170+ manned Mr. Payroll locations in various retailers
throughout the country would also convert to the unmanned machine because of the lower cost. Cash America, I believe has an inroad in
the unmanned check cashing arena.