There was a feature on it over the weekend. We all knew that UK pawn was more aurocentric than US pawn, but A&B was known for being less so than most. Well, not quite. They chased rising gold prices and are now in a great deal of trouble. No biggie for EZPW because the A&B holdings are on the balance sheet at cost; it can go anywhere without affecting the numbers people pay attention to. But the trigger for the collapse in A&B's share price might be a biggie: a refinancing deal fell through. Presumably, they had access to the investment banking expertise of the 30% owner (EZCorp), and an important deal didn't work. Once again, we see that our investment banking resources are less than magical.
Well said!!! These guys are like the 3 stooges. Watch. They'll think their getting a deal and will end up buying the other 70 percent at some ridiculous number. One thing I do know. EZ corp can't run it!!!
These guys are idiots, but A&M represents about 2% of their stock price - let's not get carried away about what this is really worth for EZPW. Buying them out of bankruptcy or for their amount of net debt probably isn't terrible.