I've gone through the latest article in SA about payday lenders, I think the industry and investors were prepared for it long time back, the share price of QCCO is very undervalued when the new regulations and the reforms the company went through are factored, still way undervalued IMO, thoughts?
Agreed. Built in. Fact is smart government agencies realize abolishing payday lenders will force activity into the grey market at best and to money laundering organizations at the worst. Payday lender competition, oddly enough, has come from too big to fail banks and non-governed sources (Indian reservations need to put the casino money to work and off-shore sources).
seems like CFPB is only drafting rules, it can create best practices rules. no rate cap's. but for sure payday loan volumns will fall, but so far QCCO has had 3rd Q of rising total sales. I think the worst is finally over. this management seems very conservative and managed to growth book value all thru the financial crisis. how ironic .