The market is now down almost 130 points. However, ezpw is underperforming the market, and did yesterday, too. I can not think of a reason for it to be doing so poorly today and yesterday. Anyone have xpeculations? The last person who posted argued that ezpw is down for technical reasons, I believe. I can accept a technicals argument. Anything even remotely about fundamentals or news, remotely? I am a long term holder and own more than I planned. Still, this is a "blood in the streets" situation, if nothing even remotely based on fundamentals or indirect news or new information/trends exist...I think.
Excellent comment about the effect that being removed from the IBD has had. That was some time ago, though and my estimates of a $20. plus stock price was based on earnings growth. Short term, my biggest concern is the earnings growth rate that this stock shows, primarily through the next earnings report. This concern prices in a real crisis in ezpw that definitely does not exist at this point when the stock goes below $14.
The TX CSO is intact for another two years. The TX AG dumping issue was handled well. However, the 3/1 split drove EZPW to the IBD $15 benchmark and during the CSO uncertainty the shorts managed to turn the chart. The stock is now downtrending. Growth is slowing and gold scrapping margins will soon fail to provide the boost to EPS EZPW longs have seen the last several quarters. In either case, further store expansion over time should still pay off for longer-term oriented investors. I've picked up more shares in my IRA on this weakness. Market corrections tend to affect 90% of my portfolio holdings.
1) the entire sector did lack a post texas legislature rally - and not only because of the down market the last 3 days. any relieve rally should have started earlier.
2) the AG issue did not cause any price spike either - sort of a non event - pretty strange.
3) today csh and fcfs did far better then ezpw for which i have no explanation other then a higher beta
4) no major insider sales in the last 4 weeks
5) we almost touched the lower end of the 10 month trading range.
6) backing out 2 USDs because of cash and abm.l stock we are at a PE of about 13 for current estimate - with a still intact growth rate of 20 %
7) did the picture for ezpw change? is there an increased risk of bad debt that would only affect ezpw and not the rest of the sector? if unemployment stays low, the rate increases accros the board affect consumers and ezpw can manage their loan inventories well - what's not to like about this outlook? does anyone have material macro economic doubt about this development?