In a Pawn Shop Economy, Are Pawn Shop Stocks Good For Investors? EZPW, FCFS, CSH
In a pawn shop economy like we have now where even the middle class are having a hard time getting credit, pawn shop stocks like EZCORP (NASDAQ: EZPW ), First Cash Financial Services (NASDAQ: FCFS ) and Cash America International (NYSE: CSH ) are booming (check out my article: “ Payday Loan and Check Cashing Stocks: Can Usury Be Profitable For Investors? QCCO, DLLR, CSFS ”). Moreover, the National Pawnbrokers Association says that 80% of all pawn loans are repaid but its also important to note that most states cap the monthly interest rate – which can range from 4% in the state of New York to 25% in Florida. This means that the government can change the rules to benefit consumers at the expense of pawn shops. On the other hand, pawn shop stocks EZCORP (EZPW), First Cash Financial Services (FCFS) and Cash America International (NYSE: CSH) are also active in Mexico and no doubt count plenty of legal (and illegal) Mexican immigrants among its customers in the US plus ordinary Mexicans in Mexico who may not have access to banking services or credit. Moreover, most of the items pawned are jewelry – which (especially if its made of gold) can appreciate rather than electronics which only depreciate. Hence, are pawn shop stocks a good investment? Here is a closer look at all three pawn shops to help you decide:
EZCORP (NASDAQ: EZPW)
EZCORP operates 1,100 pawn stores in the US under the EZPAWN and Value Pawn brands and in Mexico under the EMPENO FACIL and EMPENE SU ORO brands plus it operates short-term consumer loan stores in the US under the EZMONEY brand and in Canada under the CASHMAX brand. In a recent article in Forbes, the president of North American operations at EZCorp commented that the company has seen 30% to 40% earnings growth over the last four or five years – no doubt thanks to the gloomy economy. In fact, EZCORP reported a $36.3 million fiscal 4Q2011 profit on $234 million in revenue verses a $27.8 million profit on $198.1 million in revenue for the same period last year. EZCORP has also recently acquired 15 San Antonio-area MoneyMartpawn.com Inc. stores, which upped the number of its locations in the city to 37; and acquired the assets of Australia-based Cash Converters United LC which included locations in Virginia and Pennsylvania along with the franchise rights to use the company’s name in several states. In other words, EZCORP is a growth stock for a slow growth (or no growth)economy. On Wednesday, EZCORP rose 5.21% to $29.09 (EZPW has a 52 week trading range of $25.04 to $38.66 a share) for a market cap of $1.46 billion.
Unsecured Personal Loan Bank Of America - News
The 68-year-old retired office worker says she got as many as 10 calls a day from a debt-collection firm asking for $16651.52 that her husband, Millard, had racked up on a Bank of America Corp. credit card. Listen to two of the calls between Mrs. Long
Prosper is offering a free iPod Nano(*) to borrowers who get a personal loan during the holiday promotion, which runs from November 21, 2011 through November 27, 2011. "Millions of Americans will run up hundreds or thousands of dollars in high-interest
Cash America International provides financial services that include secured non-recourse loans (pawn loans and unsecured consumer loans), short-term single payment loans and longer-term multi-payment installment loans at 1083 locations in 23 states
Consumer Lending The Bank offers various secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The Bank originates its consumer loans within its geographic
The Banks are community oriented and offer retail and corporate banking services including checking, savings, and time deposit accounts, secured and unsecured loans, wire transfers, trust services, and rental of safe deposit boxes.
About Lender of America Personal Loans
Personal loans are also cash loan well-known as unsecured loans. Lender of The united states has the ability to supply these kind of loans must persons meet specified qualifications. Find out concerning the possibilities for gaining a personal loan from this bank.
Identification
Personal loans really are a foreigner loan type of unsecured financial loan. This implies that the bank needs no collateral or anything at all of price that can be repossessed inside the occasion that the financial loan cannot be repaid. As a result, the person borrowing the cash assumes a lot less chance.
Kinds
You will find loan company three sorts of unsecured loans. A particular unsecured financial loan is a single that the borrower like a man or woman is required to pay again. The 2nd is surely an unsecured home business financial loan, during which the home business obtaining the financial loan is required to pay again the cash. As a final point, you can find unsecured home business loans by using a particular promise, which means that a company is initially answerable for the financial loan, but like a final resort, a person may well honor the financial loan.
Options
For the reason that unsecured loans haven’t any collateral, they can be regarded for being far more effective for the borrower, but far more risky for the lender. As a result, they can be more durable to receive, simply because if a person defaults around the financial loan, there is nothing of price for the home business to seize. Numerous banking institutions, which includes Lender of The united states, will need to test an individual’s credit history score to receive an thought of an individual’s capability to pay again the financial loan.
Criteria
Lender of The united states presents many different unsecured loans. Some, one example is, are presented out to help consolidate other varieties of debts, this sort of as credit cards and other high-interest loans. The intention of this type of personal loan will be to combine distinctive debts into a single far more manageable debt by using a reduced rate of interest. Other unsecured loans is usually obtained for financing this sort of costs as education and learning.