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***I need 20 replies to this thread before I will issue another stock pick! I mean it!!***
$$$MR. MARKET$$$ was once put on the wrapper for a toilet paper company. The company field tested it but it didn't work because $$$MR. MARKET$$$ doesn't take crap from nobody.
$$$MR. MARKET$$$ once broke the land speed record on a bicycle that was missing its chain and the back tire.
When $$$MR. MARKET$$$ looks in the mirror, it breaks because it is smart enough to know not to get in the middle of $$$MR. MARKET$$$ and $$$MR. MARKET$$$.
$$$MR. MARKET$$$ recently had the idea to sell his urine as a canned beverage. We know this beverage as Red Bull.
Why am I patting myself on the back? Today I sold CSH at 46.46. That’s a 16% return over my purchase price of 40.10. What does that mean?
That means I now have 28 consecutive profitable trades of 15% or better. Can you do that? You? YOU? YOU??? Now some of you haters out there may say..”Hey $$$MR. MARKET$$$..what took you so long on that one..you held it for over a year?” My response to that is “So what?”…Over the same period, the S&P 500 was up only 13%, so $$$MR. MARKET$$$ is superior. Also, CSH, with a PE of only 12 was a better value and the market and outperformed the market.
You SEES? YOU SEESSSSSS?
So…if you want another pick…don’t forget to tell a friend. Don’t forget to tell $$$MR. MARKET$$$ that you want another pick. Our Derek Dreams dinner is tomorrow….
www.dereksdreams.com
I am HUGE!
$$$MR. MARKET$$$
04-02-2010, 10:04 PM
mrmarket
Administrator Join Date: Sep 2003
Posts: 3,834
CSH ==> The Spring Has Sprung Winner!
--------------------------------------------------------------------------------
The Titans used to go to Atlantic City and play blackjack til we lost all of our quatloops. Then rather than cut our losses and go up to the hotel room and sleep like lions, we foolishly took out the Sunoco card and went to casino credit. For a mere 20% interest rate, we were given the opportunity to lose more money at blackjack and drink cold and delicious beer and smoke Partegases as long as my arm.
There had to have been a better way. If only we had known our way to the pawnshop, we could have had much better economic financing. When you need cash, you just need some cash.
Yesterday I bought shares of Cash America International (CSH) at 40.10. I will sell it in 4 to 6 weeks at 46.19. Here’s why I like CSH:
This stock is sa-mokin. Look at the chart. It’s a straight line up up up! It’s already up 143% in the last 52 weeks and its PE is an incredibly low 12.7 AND it pays a dividend. Can’t lose…can’t lose!
Cash America International, Inc. provides specialty financial services to individuals primarily in the United States and Mexico. The company operates in three segments: Pawn Lending, Cash Advance, and Check Cashing. The Pawn Lending segment offers pawn loans through its pawn lending locations, which operate under the names Cash America Pawn and SuperPawn in the United States, and Prenda Facil in Mexico. This segment also sells previously-owned merchandise acquired from customers who do not redeem their pawned goods, as well as sells items purchased from third-parties or customers. The Cash Advance segment offers unsecured cash advances in selected lending locations that are operated under the names Cash America Payday Advance and Cashland in the United States; and short-term cash advances over the Internet under the names CashNetUSA in the United States, QuickQuid in the United Kingdom, and DollarsDirect in the Canada and Australia. What an awesome business model. Extract pornographically high interest rates from people who want cash NOW! Cash America is boosting the loans it offers online, and is expanding a payday cash-advance feature.
CSH caters to families with an average yearly income of $35,000, and that often don't have a bank account. Many often need quick access to small amounts of cash. So say you don’t have a credit card and you’re getting paid at the end of next week. You finally get this hot girl to go out on a date with you, but you don’t have any cash and you can’t wait until the end of next week! CSH offers small payday loans averaging $100 in exchange for a check that's deposited at the end of the loan period.
As of December 31, 2009, Cash America International, Inc. had 1,048 total locations offering specialty financial services to consumers, including 676 pawn lending locations (including 9 unconsolidated franchised locations) consisting of 500 locations operating in 22 states in the United States under the names “Cash America Pawn” and “SuperPawn” and 176 pawn lending locations, of which the Company is a majority owner, operating in 20 states in central and southern Mexico under the name “Prenda Fácil.” In addition, as of December 31, 2009, the Company had 246 cash advance storefront locations operating in six states in the United States under the names “Cash America Payday Advance” and “Cashland” and 121 unconsolidated franchised and five Company-owned check cashing centers operating in 16 states in the United States under the name “Mr. Payroll.”
Amid recession, Cash America International is using the credit-crunch boom time to lure new customers and expand. To woo the growing number of consumers facing a credit squeeze, Cash America is boosting the amount of short-term loans it offers online, and is adding a cash-advance feature to electronic payroll cards. Such cards are gaining popularity among employees with poor credit, or those without traditional bank accounts.
The firm opened an additional 50 to 60 stores in Mexico. Mexico is appealing because it is a cash-driven economy where approximately 80% of transactions are done in cash. Mexico is an attractive market because the cultural approach to pawning is traditional. Customers in Mexico tend to use the product appropriately, in that they come in, use it as a short-term source of cash and then redeem the loan. Credit there tends to be very good.
Since its founding 25 years ago in Fort Worth, Cash America has sought to make the pawn industry respectable. Cash America's pawn stores more closely resemble mall jewelers or a local Blockbuster outlet. Pawnshops lend customers money, without running a credit check, in exchange for pawned merchandise ranging from Grandma's diamond ring to iPods to electric lawn mowers. If a customer can't pay back the loan, then the shop sells the goods, usually at about 50% to 60% of the price of what an item would cost new. A big chunk of the business of pawn lenders comes in making loans on gold jewelry. With the price of gold elevated, the companies can safely lend more money against a given item, making transactions more profitable. Moreover, as gold prices rise, so does the value of the jewelry that isn't redeemed by borrowers; this gets melted down and sold.
Though fees vary by state, the cost of a typical $100 loan is about $10 to $20 per month and 3 out of every 10 people "foreclose" on their goods on average.
Payday lenders offer short-term loans that are often priced at a fixed-dollar fee. But the underlying annual interest rate in states without caps ranges from 195% to 574%. Of course the borrowers get completely punished. The government may step in and stop this abuse. Currently, 16 states and the District of Columbia have interest rate caps of 36% or lower, which effectively make it unprofitable for Cash America to operate in those places. During the presidential campaign, President Obama's website stated that he supported a 36% interest rate cap, which would effectively eliminate the payday loan business. However, the House Financial Services Committee has voted to create a Consumer Financial Protection Agency that would merely regulate the business. Also, if payday loans were eliminated, some of that business would likely go to pawn loans, meaning pawn lenders could gain business from payday-only companies.
Oh well, less money for Cash America but they are getting plenty of quatloops with the other stuff they do. Cash America will continue expanding online and increase its focus on international business in countries lacking financial services for low-wage workers. Of course before we start feeling sorry for all these people, remember the average fee for a $100 payday loan is $15. If you translate that two-week advance into an annualized rate, as on a credit card, you're looking at a 391 percent interest rate.
But look:
$15 -- Payday loan -- 391 percent
$29 -- Overdraft fee on checking account -- 755 percent
$37 -- Credit card late fee -- 965 percent
$56 -- Bounced check fee -- 1,449 percent
So who’s the meanie now?? The banks are much worse than Cash America!
Well..does this business make money?
Cash America International reported today that its fourth quarter ended December 31, 2009 net income attributable to the Company increased 107% to $33,683,000 ($1.09 per share) compared to $16,267,000 (54 cents per share) for the fourth quarter of 2008. The results for the fourth quarter of 2009 exceeded the top-end of the Company’s previously released guidance for earnings per share of between 94 cents and $1.02. During the fourth quarter of 2009, the Company reported a 16% increase in total revenue, which reached $323,697,000, up from $279,731,000 in the same period in 2008. Higher balances of pawn loans outstanding and cash advance loans written generated increased revenue from these products and contributed the largest share of the growth in total revenue during the fourth quarter. In addition, merchandise sales rose 9% in the fourth quarter of 2009 compared to the same period in 2008 adding to the top line growth for the period. Gross profit margin on the disposition of merchandise was also higher year over year, boosted during the quarter by the higher market price for gold compared to the same period in 2008. The increase in gross profit contribution and the higher revenue from lending activities produced a 20% increase in the Company’s net revenue.
Based on the preceding factors management believes that the first quarter of 2010 will produce between 89 and 94 cents in earnings per share compared to 79 cents in the first quarter of 2009. Management updates and raises its previously reported expectations for its fiscal year 2010 earnings per share to a range of between $3.50 and $3.65 which compares to actual full year 2009 earnings per share of $3.17.
ANAL-ysts, with their daring expertise and incredible quantitative skills have decided that first quarter earnings will be smack dab between the range that the company projected – 91 cents per share for the quarter and $3.62 per year based on revenues of $1.23 billion. What a bunch of lightweights! It’s like they didn’t even hit it to the Lady’s tee!!
People are out buying stuff again. They need cash. $$$MR. MARKET$$$ knows that CSH will have 2010 revenes of $1.4 billion which will spit out earnings of $4.68 per share. That is HUGE! Even with the insanely low PE of 12.7, if you apply that multiple to my earnings prediction you get a stock price of : 12.7 x 4.68 = $59.44. Oh yea, that’s way past my sell target. I love Cash America and their boss loves it too:
Commenting on the results for the third quarter, Daniel R. Feehan, President and Chief Executive Officer said, “ Our pawn lending activities have continued to produce earnings growth throughout 2009 and in the third quarter we were able to add year over year growth in our cash advance business segment as our storefront business posted a successful third quarter.” Mr. Feehan added, “We are proud to have posted
this earnings growth while adding 158 net new pawn lending locations, including 113 acquired locations and 49 start-up locations while closing 4 locations, in an effort to expand the concentration of our pawn lending activities over the last twelve months.”
“We were able to execute efficiently with all of our loan products in the quarter as demand surged resulting in higher balances outstanding. In addition, we emphasized the sale of merchandise at our retail locations and the liquidation of gold through the open market. Both avenues of sales were successful in the quarter, helping to balance an efficient mix of loans and merchandise as we enter the first quarter of 2010. Mr. Feehan added, “We are also excited that the growth in the earnings for the quarter was achieved with the burden of 69 de novo pawn lending locations added during the year representing the largest single year growth in new pawn locations in the history of Cash America.”
Yes indeed..cash is king and with this stock I will be lighting cigars with Benjamins very soon.
Let me know if you liked this stock pick and this write up. If you jump into this pick and make some money, please don’t forget Derek: www.dereksdreams.com
I am HUGE!
$$$MR. MARKET$$$
__________________
$$$MR. MARKET$$$ was once put on the wrapper for a toilet paper company. The company field tested it but it didn't work because $$$MR. MARKET$$$ doesn't take crap from nobody.
$$$MR. MARKET$$$ once broke the land speed record on a bicycle that was missing its chain and the back tire.
When $$$MR. MARKET$$$ looks in the mirror, it breaks because it is smart enough to know not to get in the middle of $$$MR. MARKET$$$ and $$$MR. MARKET$$$.
$$$MR. MARKET$$$ recently had the idea to sell his urine as a canned beverage. We know this beverage as Red Bull.
Why am I patting myself on the back? Today I sold CSH at 46.46. That’s a 16% return over my purchase price of 40.10. What does that mean?
That means I now have 28 consecutive profitable trades of 15% or better. Can you do that? You? YOU? YOU??? Now some of you haters out there may say..”Hey $$$MR. MARKET$$$..what took you so long on that one..you held it for over a year?” My response to that is “So what?”…Over the same period, the S&P 500 was up only 13%, so $$$MR. MARKET$$$ is superior. Also, CSH, with a PE of only 12 was a better value and the market and outperformed the market.
You SEES? YOU SEESSSSSS?
So…if you want another pick…don’t forget to tell a friend. Don’t forget to tell $$$MR. MARKET$$$ that you want another pick. Our Derek Dreams dinner is tomorrow….
www.dereksdreams.com
I am HUGE!
$$$MR. MARKET$$$
04-02-2010, 10:04 PM
mrmarket
Administrator Join Date: Sep 2003
Posts: 3,834
CSH ==> The Spring Has Sprung Winner!
--------------------------------------------------------------------------------
The Titans used to go to Atlantic City and play blackjack til we lost all of our quatloops. Then rather than cut our losses and go up to the hotel room and sleep like lions, we foolishly took out the Sunoco card and went to casino credit. For a mere 20% interest rate, we were given the opportunity to lose more money at blackjack and drink cold and delicious beer and smoke Partegases as long as my arm.
There had to have been a better way. If only we had known our way to the pawnshop, we could have had much better economic financing. When you need cash, you just need some cash.
Yesterday I bought shares of Cash America International (CSH) at 40.10. I will sell it in 4 to 6 weeks at 46.19. Here’s why I like CSH:
This stock is sa-mokin. Look at the chart. It’s a straight line up up up! It’s already up 143% in the last 52 weeks and its PE is an incredibly low 12.7 AND it pays a dividend. Can’t lose…can’t lose!
Cash America International, Inc. provides specialty financial services to individuals primarily in the United States and Mexico. The company operates in three segments: Pawn Lending, Cash Advance, and Check Cashing. The Pawn Lending segment offers pawn loans through its pawn lending locations, which operate under the names Cash America Pawn and SuperPawn in the United States, and Prenda Facil in Mexico. This segment also sells previously-owned merchandise acquired from customers who do not redeem their pawned goods, as well as sells items purchased from third-parties or customers. The Cash Advance segment offers unsecured cash advances in selected lending locations that are operated under the names Cash America Payday Advance and Cashland in the United States; and short-term cash advances over the Internet under the names CashNetUSA in the United States, QuickQuid in the United Kingdom, and DollarsDirect in the Canada and Australia. What an awesome business model. Extract pornographically high interest rates from people who want cash NOW! Cash America is boosting the loans it offers online, and is expanding a payday cash-advance feature.
CSH caters to families with an average yearly income of $35,000, and that often don't have a bank account. Many often need quick access to small amounts of cash. So say you don’t have a credit card and you’re getting paid at the end of next week. You finally get this hot girl to go out on a date with you, but you don’t have any cash and you can’t wait until the end of next week! CSH offers small payday loans averaging $100 in exchange for a check that's deposited at the end of the loan period.
As of December 31, 2009, Cash America International, Inc. had 1,048 total locations offering specialty financial services to consumers, including 676 pawn lending locations (including 9 unconsolidated franchised locations) consisting of 500 locations operating in 22 states in the United States under the names “Cash America Pawn” and “SuperPawn” and 176 pawn lending locations, of which the Company is a majority owner, operating in 20 states in central and southern Mexico under the name “Prenda Fácil.” In addition, as of December 31, 2009, the Company had 246 cash advance storefront locations operating in six states in the United States under the names “Cash America Payday Advance” and “Cashland” and 121 unconsolidated franchised and five Company-owned check cashing centers operating in 16 states in the United States under the name “Mr. Payroll.”
Amid recession, Cash America International is using the credit-crunch boom time to lure new customers and expand. To woo the growing number of consumers facing a credit squeeze, Cash America is boosting the amount of short-term loans it offers online, and is adding a cash-advance feature to electronic payroll cards. Such cards are gaining popularity among employees with poor credit, or those without traditional bank accounts.
The firm opened an additional 50 to 60 stores in Mexico. Mexico is appealing because it is a cash-driven economy where approximately 80% of transactions are done in cash. Mexico is an attractive market because the cultural approach to pawning is traditional. Customers in Mexico tend to use the product appropriately, in that they come in, use it as a short-term source of cash and then redeem the loan. Credit there tends to be very good.
Since its founding 25 years ago in Fort Worth, Cash America has sought to make the pawn industry respectable. Cash America's pawn stores more closely resemble mall jewelers or a local Blockbuster outlet. Pawnshops lend customers money, without running a credit check, in exchange for pawned merchandise ranging from Grandma's diamond ring to iPods to electric lawn mowers. If a customer can't pay back the loan, then the shop sells the goods, usually at about 50% to 60% of the price of what an item would cost new. A big chunk of the business of pawn lenders comes in making loans on gold jewelry. With the price of gold elevated, the companies can safely lend more money against a given item, making transactions more profitable. Moreover, as gold prices rise, so does the value of the jewelry that isn't redeemed by borrowers; this gets melted down and sold.
Though fees vary by state, the cost of a typical $100 loan is about $10 to $20 per month and 3 out of every 10 people "foreclose" on their goods on average.
Payday lenders offer short-term loans that are often priced at a fixed-dollar fee. But the underlying annual interest rate in states without caps ranges from 195% to 574%. Of course the borrowers get completely punished. The government may step in and stop this abuse. Currently, 16 states and the District of Columbia have interest rate caps of 36% or lower, which effectively make it unprofitable for Cash America to operate in those places. During the presidential campaign, President Obama's website stated that he supported a 36% interest rate cap, which would effectively eliminate the payday loan business. However, the House Financial Services Committee has voted to create a Consumer Financial Protection Agency that would merely regulate the business. Also, if payday loans were eliminated, some of that business would likely go to pawn loans, meaning pawn lenders could gain business from payday-only companies.
Oh well, less money for Cash America but they are getting plenty of quatloops with the other stuff they do. Cash America will continue expanding online and increase its focus on international business in countries lacking financial services for low-wage workers. Of course before we start feeling sorry for all these people, remember the average fee for a $100 payday loan is $15. If you translate that two-week advance into an annualized rate, as on a credit card, you're looking at a 391 percent interest rate.
But look:
$15 -- Payday loan -- 391 percent
$29 -- Overdraft fee on checking account -- 755 percent
$37 -- Credit card late fee -- 965 percent
$56 -- Bounced check fee -- 1,449 percent
So who’s the meanie now?? The banks are much worse than Cash America!
Well..does this business make money?
Cash America International reported today that its fourth quarter ended December 31, 2009 net income attributable to the Company increased 107% to $33,683,000 ($1.09 per share) compared to $16,267,000 (54 cents per share) for the fourth quarter of 2008. The results for the fourth quarter of 2009 exceeded the top-end of the Company’s previously released guidance for earnings per share of between 94 cents and $1.02. During the fourth quarter of 2009, the Company reported a 16% increase in total revenue, which reached $323,697,000, up from $279,731,000 in the same period in 2008. Higher balances of pawn loans outstanding and cash advance loans written generated increased revenue from these products and contributed the largest share of the growth in total revenue during the fourth quarter. In addition, merchandise sales rose 9% in the fourth quarter of 2009 compared to the same period in 2008 adding to the top line growth for the period. Gross profit margin on the disposition of merchandise was also higher year over year, boosted during the quarter by the higher market price for gold compared to the same period in 2008. The increase in gross profit contribution and the higher revenue from lending activities produced a 20% increase in the Company’s net revenue.
Based on the preceding factors management believes that the first quarter of 2010 will produce between 89 and 94 cents in earnings per share compared to 79 cents in the first quarter of 2009. Management updates and raises its previously reported expectations for its fiscal year 2010 earnings per share to a range of between $3.50 and $3.65 which compares to actual full year 2009 earnings per share of $3.17.
ANAL-ysts, with their daring expertise and incredible quantitative skills have decided that first quarter earnings will be smack dab between the range that the company projected – 91 cents per share for the quarter and $3.62 per year based on revenues of $1.23 billion. What a bunch of lightweights! It’s like they didn’t even hit it to the Lady’s tee!!
People are out buying stuff again. They need cash. $$$MR. MARKET$$$ knows that CSH will have 2010 revenes of $1.4 billion which will spit out earnings of $4.68 per share. That is HUGE! Even with the insanely low PE of 12.7, if you apply that multiple to my earnings prediction you get a stock price of : 12.7 x 4.68 = $59.44. Oh yea, that’s way past my sell target. I love Cash America and their boss loves it too:
Commenting on the results for the third quarter, Daniel R. Feehan, President and Chief Executive Officer said, “ Our pawn lending activities have continued to produce earnings growth throughout 2009 and in the third quarter we were able to add year over year growth in our cash advance business segment as our storefront business posted a successful third quarter.” Mr. Feehan added, “We are proud to have posted
this earnings growth while adding 158 net new pawn lending locations, including 113 acquired locations and 49 start-up locations while closing 4 locations, in an effort to expand the concentration of our pawn lending activities over the last twelve months.”
“We were able to execute efficiently with all of our loan products in the quarter as demand surged resulting in higher balances outstanding. In addition, we emphasized the sale of merchandise at our retail locations and the liquidation of gold through the open market. Both avenues of sales were successful in the quarter, helping to balance an efficient mix of loans and merchandise as we enter the first quarter of 2010. Mr. Feehan added, “We are also excited that the growth in the earnings for the quarter was achieved with the burden of 69 de novo pawn lending locations added during the year representing the largest single year growth in new pawn locations in the history of Cash America.”
Yes indeed..cash is king and with this stock I will be lighting cigars with Benjamins very soon.
Let me know if you liked this stock pick and this write up. If you jump into this pick and make some money, please don’t forget Derek: www.dereksdreams.com
I am HUGE!
$$$MR. MARKET$$$
__________________
You do appear to be huge!
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