OH, are you feeling picked on? I am so sorry. I was voted most popular in school, you missed that also. Have a great day, and by the way, see if you can come up with some additional positive topics for CONN, this board really misses it.
I guess a couple of thumps down should help you understand your posts - Idiot is also a very big word for someone that wants to be respected on this board. How is it working out for you?
Look up the definition of the word Boob, then you will find your response missing his point. I am assuming he knows the definition of the word, but then maybe not.
BOOB? Pretty big word for you given your accuracy posting news or events on Conn. Gee, come to think of it I should have used Boob in my post, Thanks for the tip
You never stop trying to offer some great event for shareholders, so far you are O for XXXXX.
You are be biggest dreamer. You will never experience anything close to all the performance you write on this board. Just a dreamer
I understand, but usually the market will give some benefit on share price given this reduction in shares which should make the earnings per share higher.. The market just does not see that with the Company
These swings just amaze me. buy backs are suppose to give the shareholders some relief. This company just continues to find ways to inflict pain on the shareholders.
Now with this increase in borrowing and continued opening of new stores this company can now create another huge portfolio of sub-prime loans to securitize later. So this process will continue. Borrow money to loan to sub-prime customers, report the revenue as earnings while the delinquency rate determines actual profit and when the delinquency rate gets out of control, try to sell it. It is going to be interesting to see how the market values this company going forward doing business this way.
Shares of retailer Conn's (NASDAQ:CONN) were sent soaring on Monday after the company announced it had amended an $810 million asset-based revolving credit facility. The stock closed on Monday up about 20%.
Conn's operates an in-house financing business, which is responsible for financing a large portion of the company's sales. This business model is capital intensive, especially since Conn's is growing its store count rapidly, and the company uses debt to extend credit to its customers.
In the 8-K that Conn's filed with the SEC, the details of the amended credit facility are laid out. Most notably, the maximum total leverage ratio covenant, which is the ratio of total liabilities, adjusted for some items, to tangible net worth, was raised from 2.0 times to 4.0 times. This move allows Conn's to borrow more based on the same asset base. In addition, conditions around future securitizations of Conn's customer receivables portfolio were relaxed.
Why is Conn's soaring on this seemingly mundane news? This move comes after the company announced that it was securitizing $1.4 billion of the consumer debt on its balance sheet. Conn's stock collapsed in 2014 as the delinquency rate for its in-house financing business surged, and while the company has tightened its lending standards, the delinquency rate remains elevated.
While the amended credit facility seems like positive news for Conn's, the market's reaction appears to be vastly overdone. The surge in the stock price today could have more to do with the fact that the stock had been more than cut in half since the beginning of July rather than the actual details of the credit facility announcement.
Great timing, I am now out again, just know these moves have a history of not lasting long. These recent pops have really helped me reduce my loses in this stock. Good Luck. Your buys have certainly helped average your PPS.
I for one do not think the buyback will help, a note was published, cannot remember the writer, but his point was that when the market moves up as it has this month and the companies with poor or questionable leadership institute buybacks the market is then a it;s peek. If this is anywhere close to a fact, then Conn's buybacks would be one of those companies that would not benefit from their buybacks.
That move you outlined going 20 to 40 was before the true credit portfolio was fully understood, now that it is IMO fully understood, the market does not like it. If conn continues to operate as they have throughout 2014 and 2015 this company could be trading in single digits and then be categorized as a credit company not as it is now defined.