chart is set up to move back to at least 50
1. CONNS guidance is for 3.40 to 3.70 per share this year
2. They have not warned
3. the growth rate is 35% for revenues and earnings
4. They continue to open successful stores and in new territories
5. On a 12 month rolling forward basis, EBITDA is about 300M so the stock is trading around 5x forward EBITDA. B Riley believes the stock should trade at 11x EBITDA
6. Earnings next year are suppose to be in the mis to high 4 dollar range and we are getting close to talking about next year
7 Piper said that CONNS has nothing to do with rent center or Aarons yet that is what was the catalyst for turning a rising stock at 52 to where it is now at 42.50
8. I've been doing this a long time, and it appears that the stock doesn't trade freely and has an overly high percentage of short interest given that there is no bad news and that guidance is for delinquency rates to go to 7% which is what scared the market in cutting the stock in half from 75
I don't think I've ever seen a stock trade at 5x forward EBITDA with no bad news, compass of 10 to 15% and a 35% earnings growth rate
when was the last time anyone who is reading saw a stock trading at 9x net income with a 35% earnings growth rate...the retail market is down but CONN's has performed right through it. In fact, its the right model for the tight times we are in so the multiple should be higher than the S&P and 1/2
Conn's recent sell-off a buying opprotunity, says Piper Jaffray
Piper Jaffray views the 9% sell-off in shares of Conn's (CONN) over the past three days as unwarranted. Piper notes that Conn's comps have no correlation to Aaron's (AAN) and Rent-A-Center (RCII), who both issued negative preannouncements. The firm recommends buying Conn's and keeps an Overweight rating on the name with a slightly reduced price target of $59
I don't usually reply to morons who knw nothing about CONN buy you misunderstood..The share price was 47.50 Thursday and got in again around 44...so who's the fool for not knowing how to read
earnings projection today is 3.70 and a buck twenty north of that next year
discouraged investors see what is happening and hesitate to invest...
good bye folks..made my profit..time to go
As soon as it was approaching green TODAY, the short algo kicked in and the stock dropped 70 cents on less than 10k shares traded...they can do whatever they want manipulating the stock without any fear that the company will do something to blow them out of the water..this has been going on for months and the reason why the stock trades as multiples not even close to what others shares in the market...its become quite insane IMO...
I'VE MADE THE DECISION TO MOVE ON NOT BECAUSE OF THE SUCCESS AND EARNINGS OF THE COMPANY WHICH IS UNDISPUTED...IT IS BECAUSE THE MANAGEMENT TEAM ARE A BUNCH OF PANZIS WHO REFUSE TO STAND UP FOR SHAREHOLDERS
trading lower than it did in April as well...the rebound will be strong but the point I'm making is the company executives are extremely naive IMO
even with a 35% earnings growth rate, lower delinquencies, less than 6 x forward EBITDA , Moody's giving them the thumbs up, a restructure of 1/s their bonds to 2022....20% comp growth this quarter and a heck of business model...
I blame the company for their ignorance and letting the short manhandle this stock..the board needs to wake or be replaced
Doesn't look like it. Volume incredible low last two days but down 3.50..try to buy..you won't find a whole lot of shares..wash out already occurred last month..chart says about to break the 200 day moving average
Thank you for the info! I have to say I was getting a little freaked even thought the charts say a big run is coming... this company is amazingly undervalued here aftter earnings
growth rate of earnings IS 35%..At least publically, guidance is for delinquency rates to go below 7%. Off the charts earnings and great conference call..This is not making sense anymore. CONNS management needs to protect their stock
So I guess you don't want to answer the questions...thaat's fine..and a piano could fall on my head too
Hey Flaboy...do you think the the short interest has increased significantly since June 1st when this downturn occurred?
Do you think I should sell with the 20 day breaking the 100 day moving average today and the 50 day about to break the 100 day and with major resitence at the 50 day moving average?...do you think the delinquency rate at 8% with guidance going to 7% should easy invesotor concerns when the weather spiked delinquency rates because customers who pay their bills at the stores couldn't get to them? Do you think the debt ratios which are exactly the same as in the past are wong?? Do you think all the stron buyupgrades into the 60's, 70's and 80's matter or should they be ignored? And that the forward earnings guidance is 4.70 to 5 dollars next year? Do you think investors should set aside the 35% earnings and revenue growth rates and the guidance of 20 new builds per year for the forseeable future? Do you think a stock trading at forward EBITDA at less than 6x is not cheap?
You don't think its not going to spike big with technical traders jumping on board from here? Do you think one should be a long term investor who follows increasing earnings or should one just trade on fear and sentiment?
Curious for you to respond to each and everyone of these questions..much appreciated..
with a 35% growth rate...PEG off the charts ..should be trading at a mulitple of at least 20..traded at 30x in December..huge resistence down here..crazy stock
delinquency issue that tanked the stock from 80 is gone and the reason for the price target increases....big inside buyers at 40, no bad news and golden cross today...
stock opened at 52 and now at 45 after impecible earnings report should be a catalyst for reversal and the continued uptrend
Two golden crosses in a row and RSI MACD ready..MACD could go to 90 IMO...Monday....latest Tuesday
Big move 4 months in the making after the stock was broken
I do not usually make stock predictions and simply folow charts showing trends but this time I'm making an exception based on strong fundementals low valuation and chart set up
Another amazing stat...now trading at .75x forward revenue of $2B..normally it would be at least 2x forward revenue