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Larry Meyers  

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  • World Acceptance: Still Dancing For Now, But Is The Music About To Stop? [View article]
    Excellent analysis, however I will disagree with both you and Mr. Tilson -- Rivlin's book is a hatchet job, and a deliberate one. He interviewed many people from the consumer lending industry promising to be neutral and lied about it. There are extensive inaccuracies and outright falsehoods. I know many people in this sector and virtually all felt Rivlin was duplicitous and took their quotations out of context to make them look bad. He certainly did that to me.
    Jul 7, 2015. 11:48 AM | Likes Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    What changed was:
    1) Organic growth came to a halt.
    2) The CFPB got involved.
    Jul 6, 2015. 05:54 PM | Likes Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    Have a look at my articles on the subject, Paulo. In short. the plan would never work because the footprint of established alternative financial services companies is too large. Unless, of course, they were forced to close their doors. Which is what the gov't is deliberately doing.

    However, the operational difficulties of transitioning the USPS into a financial services provider are monumental....and it makes me laugh to hear anyone suggest it's possible.

    Transition one of the most inefficient, poorly-run counter operations in the country to an efficient financial services provider? LOL!
    Jul 6, 2015. 11:43 AM | Likes Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    I've written several other articles on the Post Office idea, which I believe is part of a larger, orchestrated effort by the Obama Marxists to kill consumer lending and replace it with the USPS services.

    Which will never work.
    Jul 6, 2015. 10:57 AM | Likes Like |Link to Comment
  • Hidden Risks Of An Uber IPO [View article]
    I think we are a very very long way off from that..
    Jul 5, 2015. 03:07 PM | 1 Like Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    I started covering the sector as a journalist and then as an opinion writer. No outrage from this Libertarian!

    I don't discount the possibility of a whale but here's the thing...WRLD is a tiny stock. Its market cap is too small to be of interest to these guys. Plus, if he moves in, he'll have to move in big, and then he'll have to unwind as well. Not impossible, just unlikely.

    Yeah, the CFPB thesis has been around since 2010....but they never acted until 2014. The time is nigh. And now that the CFPB knows what happens to the credit line, they will be all too happy to shut the whole thing down ASAP.

    Don't mistake the hurry up and act with loan demand being flat. The two are totally unrelated. I'm merely saying WRLD is in trouble anyway because there is no growth nor will there be any growth.

    The comparison to CSH is not a stretch and I'll tell you why. What the CFPB claimed was complete hogwash. I know the people at CSH very well, as well as the lawyers on the case. There was a lack of internal controls at a few branches. A few military loans slipped through. It was hardly intentional. CSH VOLUNTARILY issued the refunds, but the CFPB made it seem like they forced it.

    The short term credit situation in this country sucks. It sucks to be people in need of short term credit. I've written extensively about this.

    http://bit.ly/1KzQUmT

    http://bit.ly/1KzQRY1

    http://bit.ly/1zQ0m0T

    http://bit.ly/1KzQRY8
    Jul 4, 2015. 03:37 AM | Likes Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    You don't actually think the government cares? I've been fighting the battle for open access to lending for ten years. Government doesn't care. All it wants is to follow its ideological agenda.
    Jul 3, 2015. 09:39 PM | Likes Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    Marco, please understand I'm distinguishing between credit insurance such as what you are speaking of, and credit insurance on unsecured small loans, which serves no purpose. Even on property damage for cars.
    Jul 3, 2015. 08:38 PM | Likes Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    Yep. Student lending is the ultimate taxpayer-funded scam.
    Jul 3, 2015. 08:16 PM | 2 Likes Like |Link to Comment
  • Hidden Risks Of An Uber IPO [View article]
    Really? So you'll just throw money at a stock because you know what you see, which doesn't include financials? That's an....interesting...due diligence process you have.
    Jul 3, 2015. 08:14 PM | 1 Like Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    Not sure what you mean? Somebody buying up the company, in a regulatory environment where he knows it's going to get hit in some fashion but where the risk could mean the company goes to zero? Don't think so...what's the upside is the question. Even if WRLD is left alone, this is a no-growth company.

    I've been in the consumer lending space for over ten years. The secular trend for unsecured cash loans is bearish. Payday lending is contracting, installment lending is flat, even pawn is struggling and that's been a long-time winner.

    The American consumer has stopped borrowing using these products. The competition from subprime credit cards is intensifying, and while these other industries plod along, there is finally real innovation coming forth in other consumer products.

    This is what Ron Baron would call a sunset industry. Credit isn't...but this type is. All of WRLD's experienced management has bailed, leaving newbies holding the bag. There was simply no reason for Sandy McLean to leave if the business had any chance of growing back into prosperity. He left because the writing was on the wall once the bond offering failed. He must have known the creditors were going to alter the facility w/o the bond offering to take out part of the creditor's position.

    Because he couldn't goose the price of the stock any more via buybacks, and with the CFPB likely to act, there was no reason to stay....so why would anyone buy the company?
    Jul 3, 2015. 05:32 PM | Likes Like |Link to Comment
  • Hidden Risks Of An Uber IPO [View article]
    That is a very short-sighted thought. You haven't seen financials.
    Jul 3, 2015. 05:04 PM | Likes Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    Yep. CFPB wants to kill all consumer lending.
    Jul 3, 2015. 04:50 PM | Likes Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    How about saying WHY it didn't convince?
    Jul 3, 2015. 04:49 PM | 1 Like Like |Link to Comment
  • My Added Due Diligence On World Acceptance [View article]
    J,
    Thanks for your reply.

    Credit insurance is sold against all existing products, but IMHO, is entirely useless. For unsecured loans, the worst that happens is you are sent to collections. Credit property, for auto title loans, is also useless. If the car is damaged, then the consumer doesn't pay...and what? WRLD repossesses the car? Be my guest. It's damaged. Plus, if the consumer has collision insurance, it's covered anyway.

    The credit facility is pretty clear: "(viii) require the Company to notify the Administrative Agent of certain governmental or regulatory actions; and (ix) provide that certain material governmental or regulatory injunctions, judgments, rulings or orders will, if not discharged, bonded or otherwise stayed within 60 days, result in an event of default under the Revolving Credit Agreement."

    So, yes, it's possible the line isn't pulled, but consider this. The creditors clearly recognize the CFPB is out to get WRLD, and the second the CFPB acts, the creditors will freeze the line at a minimum, and likely call in everything before the CFPB horns in and steals their money. A ruling won't be stayed by any court, because the CFPB has broad interpretative and administrative powers to do whatever the hell they want.

    Could there be a big purchase? Sure. By someone incredibly stupid. I consult with PE firms all the time, and frequently on WRLD specifically, all of whom want to go short.

    Naked short is somewhat risky, but I have stops in place. In addition, the inability of WRLD to repurchase stock is what keeps it from running.
    Jul 3, 2015. 04:48 PM | Likes Like |Link to Comment
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