I know there are a lot of games/scams played on Wall Street. If you are an "investor" or a "long" you don't ned to worry about the games and scams which cause inexperienced people and weak hands to lose money.
When EZPW dropped to below $13 a few weeks back, there were many people telling me to "get out" of the stock. Of course I held and the stock roared back more than 20% in the next few trading days. I knew EZPW would deliver great earnings again! Therefore, I was not shaken out like some people.
In 2007, EZPW is a $22 - $25 stock. However, the legislation issues are holding it down. I don't think the stock will be trading much higher than $17-$18 until the regulators clear up this issue.
I am still bullish and believe the firm will deliver at least $1.00 EPS in 2007. The price of gold will add a few cents to the Q2 2007 EPS report. I am thinking EZPW will beat the street and guide higher again in April.
Yes, with all the IBD attention EZPW has had over the last 15 months, all those 7-8% stops can add to the volatility. For any stock, an investor should be aware of the earnings outlook, EPS multiple and growth rate relative to the stock price. As long as the TX CSO is preserved and YOY gold comparisons are flat to favorable, I believe there is still reason to allow store maturation and new store expansion to grow earnings and drive the stock price higher. When gold dipped below $600 a few months ago I was concerned about how the YOY scrapping comparisons might look for the quarter Apr 1 -June 30 but right now the gold comparisons are looking fine. Gold probably averaged around $550 last year Jan-March and currently gold is well above that...
I had a moment to check and EZPW is somewhat down. I only wish that I knew how much credibility to have in Thompson's I-Watch. It showed a strong institutional sell message (s) followed by strong buy action later. I do not see anything other than conventional mid-week trading, though. the best everyone.
I am a long term investor of all of my stocks. A very hectic schedule lately! It does not seem like that long when ezpw traded at 13. I started to buy shares just before then and I was worried at the time.
Thanks for your very nice comments! I live in the upper Midwest, and the biggest problem here is that the weather is changing, and getting terrible. Have a great morning!