Analyst Henry Coffey Jr. thinks that President-elect Obama is going to be too busy with the economy to focus on payday lending.
Investors seem to agree with him. EZ Corp and Cash America shares rose on his announcement.
Analyst Henry Coffey Jr. thinks that President-elect Obama is going to be too busy with the economy to focus on payday lending.
Investors seem to agree with him. EZ Corp and Cash America shares rose on his announcement.
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One response to “Payday lenders up on analyst upgrade”
There is an excellent followup article at Zach’s Investment Research on the fact that EZCORP, a major pawn and payday loan operator,reported record revenue and earnings.
“Revenue Jumped 23% in Fiscal 2008.”
“On Nov 6, EZCORP announced fourth-quarter and 2008 full-year earnings that met Wall Street estimates. For the fourth quarter, net income rose 44% to $16 million from $11 million in the year ago period.
Revenue grew 19% to $123 million. The pawn operations were the engine of growth in the quarter. It was the 25th consecutive quarter of year-over-year earnings growth.
Fiscal 2008 net income climbed 38% to $52.43 million, or $1.21 per share, from $37.87 million, or 88 cents per share, for the 2007 period. Revenue rose 23% to $457 million.”
The really interesting thing is the fact EZCORP has no problem getting access to a credit line; to the tune of $120 million dollars! And they’ve only used $40 million so far!
2009 could be a very good year for payday loans, pawn shops, check cashers and more!
Jer@PaydayLoanIndustryBlog.com