Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

DFC Global Is A Stealth Victim Of Burst Gold Bubble And FX Market Turmoil

Executive summary:

  • International pawnshop operator and payday lender, DLLR is suffering from three headwinds impacting the stock simultaneously.
  • The weakness in gold has reduced the number of consumers looking to sell their gold for cash to DLLR.
  • The weakening of the Canadian dollar against the US dollar is hurting the firm's profits in USD terms.
  • New regulatory requirements for payday lenders in the UK are stoking concerns about market share impacts.
  • These headwinds will take time to resolve, and so despite the large amount of negative news priced into the stock, I remain on the sidelines.


There have been many victims of the gold bubble bursting over the last year from investors in the gold ETF (NYSEARCA:GLD)...

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