Analyst is attacking pawn business. But I really down know what business will be better than pawn business in this economic enviroment. I have 90% of my saving in cash. Which investment is better than pawn business right now?
the new mgmt group seems to be a concern, plus the new cash converters buy is a different model than the pawn side,, margins will be tougher to maintain, along with new products being introduced.... labor costs may rise as commissions are now being paid but to offset are scaling back actual employees.... REMEMBER PAWNSHOPS ALWAYS MAKE MONEY......
I mentioned some time ago EZ investors should not underestimate the risk in this stock including gold prices. The recent correction in gold prices may be just that or perhaps the gold bubble just peaked like real estate five years ago and tech stocks in early 2000. However, one promising note I recall from October or November of 2005 was how this stock is manipulated at options expiration (today).
My opinion is that the analyst cant stand Cohen getting the consulting fee, not to mention the fact that hes increased it year over year. Growth may slow a bit from what its been, however with credit markets as they are now, this is still a great space to be in. Hopefully earnings will be a surprise on the upside.