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Paired Trade: Buy EZCORP, Sell Aaron's Rents [View article]
On Jun 07 10:28 PM Alan Brochstein wrote:
> Don't be fooled by the operating cashflow - it's fake in my opinion.
> The company reinvests in new merchandise on an on-going basis. It's
> like Hertz. Yes, there is large depreciation, but the "profits"
> are all plowed into new cars there. It's not "CapEx" at AAN (or
> HTZ). In simple terms, at least the way I look at it, the business
> grows and profits grow but the risk grows too as the portfolio grows.
>
>
> I see a lot of "screaming sells". Some of my favorites are PSS and
> HOT
Paired Trade: Buy EZCORP, Sell Aaron's Rents [View article]
Yet another interesting comparison. I'm currently looking for a screaming sell, so I wanted to check out AAN for myself.
I look more at operating cash flow, and it's been consistent for a good couple years now. Although the other numbers are interesting, I'm not sure this is a 'sure thing'.
The story is compelling. I really like how you compared not only the financials, but the business models as well to tell a fascinating tale.
Perhaps in the future, if this stock continues to rise and its business conditions do not merit such, then it may just fit into my portfolio...but not yet.