Easyonlinepaydayloan

EZPW, thoughts?

sp0om said: "I'm looking to hear what you guys think about this company: EZPW ([url=http://finance.yahoo.com/q?s=EZPW]Yahoo Finance[/url])"

HappyHarry said: "How reliable is the business? I think these payday loan places are charging a ton for interest, could they get in trouble with the government?"

alhamid said: "I think there numbers look pretty good."

trickynick said: "Now this is my kind of company! Their income statement is REALLY nice, particularly their revenue relative to cost of revenue. Notice how the revenue growth rate stays ahead of the cost growth rate. In 2003 as revenue grew by 4.8%, cost of revenue grew by only 1.3%. The same dynamic is reflected in 2003-2004, revenue grew by 10.4% and cost of revenue only grew by 2.4%. This trend indicates that management is keeping costs under control so gross margins will be protected as the company's sales grow. It's important that these two numbers (revenue and cost of revenue) diverge because if a company gets into a situation in which those numbers appear to be approaching each other that means gross margins would be approaching zero which obviously isn't a good thing. Now for my favorite piece of information about a company, the balance sheet. Since I am so sensitive to cash position my first take was to notice they have $25 million in long term debt and $2.5 million in cash and equivallents. But when you consider that the $25 million in debt they posted in 2004 is down from $31 million in 2003 and $39 million in 2002 demonstrates that eliminating liabilities they have incurred presumably in financing the company's growth is being made a priority. But the thing that REALLY got me excited was to notice (and I will put this in bold just to show how excited it got me) [b]their net tangible assets amount to 86% of their current market capitalization!!![/b] You almost NEVER find a company trading this low. I was just about to call my broker and initiate a transaction, but I will heed to my personal rule about not jumping on the bull right away and spend some more time studying the company and the industry. But honestly, I don't really think I need to see much more. If a company is trading at 86% of its net tangibles and has any future prospects whatsoever its a STRONG BUY as far as I am concerned and none of Ezcorp's major competitors seem to demonstrate these kind of value characteristics. Thanks for pointing this out, Spoom."

trickynick said: "One more thing I like. There is only one analyst (or "anal cyst" as I am so fond of calling them) covering the company. The fewer of those idoits the company has all over it the better."

sp0om said: "[B]trickynick[/B]: if you liked EZPW, check out VIP. It's one of the best stocks I've happened accross (but that was about 2 weeks ago. Still fundamentally strong, but technically, it is much less attractive than it was when I found it). I'd be interested also in hearing your take on it."

trickynick said: "I'll give them a look. BTW, I noticed I mischaracterized something in my last post when I said: [i]"If a company is trading at 86% of its net tangibles and has any future prospects whatsoever its a STRONG BUY as far as I am concerned."[/i] What I meant was it's net tangibles are 86% of its market cap. Since I got it right the first time I am sure everyone knew what I meant. Minor correction."

alhamid said: "nice analysis and its hard to argue with the logic. im looking into this one too"

AlfredSokol said: "One caution: they get 75% of their business from Texas so any change in the regulatory rules in Texas could have a huge material impact on this company. They are charging outrageous interested charges, so its bound to be capped some day."

trickynick said: "Holy caramba! I bought this less than I week ago and I have already made a 29.65% return. Most of that gain was on today's blowout earnings annoucement."

AlfredSokol said: "Then sell now, quickly! :D"

trickynick said: "[QUOTE=AlfredSokol]Then sell now, quickly! :D[/QUOTE] Hahaha! Nah, they are still reasonably priced for their future prospects. Hell, I might even buy more of them depending on how my Google short positions work out for me in the near term. Earnings in a half-hour!"

HappyHarry said: "Do you have an exit strategy? Might as well set your stops now."

trickynick said: "[QUOTE=HappyHarry]Do you have an exit strategy? Might as well set your stops now.[/QUOTE] My exit strategy is the same for all stocks. If the changes in the company's position are such that I can no longer stand by the reasoning that led me to buy them in the first place, I sell."

HappyHarry said: "Congrats on the big gainer."

trickynick said: "[QUOTE=HappyHarry]Congrats on the big gainer.[/QUOTE] Thanks, Harry! And especially thanks to Spoom for pointing it out, I never would have looked into it otherwise."

sp0om said: "I'm very happy for you and your gain :)"

StockFreak said: "its in to the gap and the runners are advancing. Nice call Spoomer."