Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

It's Not Just Gold That's Troubling EZCORP

This hasn't been the easiest year for pawn and payday lenders not named First Cash Financial (NASDAQ:FCFS), and EZCORP (NASDAQ:EZPW) has certainly found itself caught in that downdraft, with the shares down more than 40% over the past year. While fellow Seeking Alpha writer Igor Novgorodtsev gave a good rundown on EZCORP's gold scrapping issues, I believe there is more at work here than just the price and profitability of gold scrapping. Not only does EZCORP have a shareholder-unfriendly structure, but the company's losses on consumer loans and market positioning both concern me.

Now, the real question is how much a "concern" is worth. I think First Cash is hands down the better company (and I've...

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