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EZCORP, Inc. Message Board

  • oponstock oponstock Jun 27, 2012 1:13 PM Flag

    Is it time for EZPW to get taken out?

    I have been a holder and seller for many years. I got my EZPW stock when my original investment was purcahsed by EZPW about 3/4 years ago. It has been a great ride, but something is very wrong here and the stock price is showing it.

    Does anyone think that EZPW can be purcahsed and by who?

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    • I'm sure Mr Cohen is open to offers. If "more legitimate" sources of small loans find upcoming federal regulations onerous, an unconsolidated subsidiary entirely devoted to pawn, pdl, car title loans and the like might be appealing. But the guys who would be affected by that are still hoping that they can gut the consumer protection initiative; it's too soon for them to go for plan B. A private equity operator able to deliver on the investment banking services Mr Cohen has struggled with might be a buyer, but frankly the business is hard and most players wouldn't bet on being able to deliver. I don't see a takeover as especially likely.

      • 1 Reply to jacosa
      • Unsure, and I am certainly not an M&A expert, but my novice opinion...

        1. The diversification of holdings would be attractive: CC, Credimaggio, ABM.L, Cash Gennie
        2. The valuation is attractive compared to piers
        3. Their top executives are private equity veterans, Sun Capital Partners
        4. The 'consulting fee' would be immediately accreditive
        5. One guy to negotiate with vs. shareholders

        But a hard business with a PR problem...

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