tag:blogger.com,1999:blog-7294165939647321702.post4781237949487635069..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: EZCorp As PieSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7294165939647321702.post-85751186918134230962013-04-28T19:21:56.644-04:002013-04-28T19:21:56.644-04:00I recently (6-9 months ago) had a look at Cash Ame...I recently (6-9 months ago) had a look at Cash America and the industry. I was attracted by the same things your were looking at high ROIC, strong balance sheets and cheap valuations. <br /><br />A key point to add would be the affect of the housing sector crisis, overall levels of unemployment creating weaker household balance sheets and higher credit risks for traditional banks. These traditional banks are also tightening their lending standards on the back of capital constraints and extremely weak lending standards pre-GFC. This creates a massive new market for EZCorp as more and more people move outside of the traditional banking sector due to weak credit. Particularly if you think this economic malaise will continue. <br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-17317112865204128412013-04-25T08:43:48.433-04:002013-04-25T08:43:48.433-04:00Given the short term nature of these loans, I wond...Given the short term nature of these loans, I wonder what their average holding time is between the receipt and sale of the gold collateral. If it isn't too long then this reduces the risk.<br /><br />Also I assume they have detailed records on the amount of gold they hold and eventually sell throughout the year, they could easily start hedging to protect against gold price falls.<br /><br />The main problem would be a decline in customers if gold becomes worth far less, less people will have the collateral required for the loan.Sidekickhttp://investingsidekick.comnoreply@blogger.com