Lares Capital
Hedge fund manager, small-cap, long/short equity

EZCorp: From Irrational Exuberance To Irrational Pessimism

Summary

I first wrote about EZCorp (NASDAQ:EZPW) early last year. The stock back then traded at $26 and I thought it was worth $45. With the equity down now below $16, this has become my worst call in Seeking Alpha in three years.

So what's so drastically changed in 18 months to render my price target off the mark? There have been several recent well-written and thoroughly researched articles covering EZCorp and its two main competitors First Cash Financial Services (NASDAQ:FCFS) and Cash America (NYSE:CSH). While all three companies have been affected by declining jewelry scrap sales, EZPW has been hit especially hard as it has come to reply too much on scrap...

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