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EZCORP, Inc. Message Board

  • porschekick porschekick Aug 1, 2011 7:09 PM Flag

    Cramer Pawn Shop feature

    Industry reviewed on tonights broadcast and fcfs highlighted as the star of the group. ezpw and csh also mentioned, but discounted as too much pay day lending( reg risk). fcfs moving in after hours.
    long ezpw and fcfs, and not looking forward to cramer traders coming into this space.
    other views welcomed.

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    • leopab67 Aug 5, 2011 6:46 PM Flag

      Today was tempting but then I took a look at the two-year chart (looks like mid-20s is possible). Who knows what will happen but I'm not so sure this market selloff is done. I recall the insanity of 2007-2008 when EZ earnings were solid but the chaos in the financial sector overshadowed the positive news here. In a market selloff quarterly reports are irrelevant unless they provide more fuel for sellers.

    • oh believe me Jacosa,I'm glad markets are irrational from time to time....creates some irresistable buying opportunities.EZPW being a prime example.I'm a patient investor and the deeper the discount to intrinsic value is the more comfortable I am with my holding.

    • "The market can remain irrational longer than you can remain solvent."

      I wouldn't call EZPW 'best,' (no boring repetition here) but there's NO WAY (including a Great Depression) I can see earnings growth dropping below 22% in the investment time scale; it deserves to be higher (oh, alright--and could get there instantly and painlessly by paying out a dime a year, starting next year)

    • I like EZPW and expect strong growth to continue. And I dislike the extra volatility that Cramerites bring. And now to my broken record:

      The voteless stock is a real problem. Should management tilt shareholder-unfriendly, we have no leverage. The management agreement is a problem and a [theoretically] possible catastrophe: the corporate bylaws require that voting and non-voting shares receive equal dividends. There is a chance that an increase in the management fee could be seen as an improper dividend to voting stock only, with all sorts of legal expenses ensuing. Mr Rothamel remains unseasoned as a CEO: in the past quarter he did not manage analyst expectations well enough, and the market response to his discussion of earnings was unfavorable. Not that Mr Rotunda was perfect (the 3 for 1 stock split was at least as damaging as the failure to dampen analyst optimism), but he got pretty good at avoiding the easy mistakes.

      So great company, good stock, but watch your step.

      • 1 Reply to jacosa
      • You are dead on with your assessment of the upper mgmt performance. At the store levels income streams are being somewhat skewed by the new change card feature as well. Many operators are increasing loan amounts to speed up the distribution of this new product. Lowering potential margins.. also big pressure this last quarter to hit scrap gold numbers,while gold is climbing, unknown is their lock in price if any and margins may well underperform due to increased pressure to get the gold... watch closely...

    • I saw the pawnshop feature that Cramer talked about too. I bought EZPW last week after reviewing how well the pawn shops have been performing. But after evaluating the big 3 FCFS, EZPW, CSH - It looks to me like EZPW has a better growth rate and a cheaper P/E? Every comp I looked at favored EZPW. So while I think they will both do well in the next several months, EZPW has much more potential than FCFS

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