There are almost 2 billion possible customers. As such, investors might consider looking at EZ Pawn for exposure to this massive secular theme. Even if they only capture 20% of this pool of customers they will go viral!
I don't see why that number is 2 billion rather rhan something else. Is that perhaps the number of families in the world? Whatever, it's a pretty strange number.
We've already seen that cultural and terms-of-trade issues make international expansion of the business very tricky. Canadians don't do pawn (they sell outright). A modest shift in the US/AU exchange rate toppled the Cash Converters deal. Growth in Mexican pawn is limited by the need to build inventory locally (even very near the border). EZ has a history of getting things right eventually, but not necessarily on the first try.
For those of us with a long investment time scale, this is great. But hot money types who talk about sweet spots and going viral are likely to lose patience.