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  • EZPW: The Best Way To Rob A Pawn Shop Is To Own One 1 comment
    Oct 12, 2012 12:34 AM | about stocks: EZPW

    The best way to rob a pawn shop is to own one. Or even better, to control a whole chain of them through exclusive ownership of all the voting class B shares of EZPW.

    Here is a timeline of EZPW's recent CFO churn. Five people have held the CFO post over the past two years, including the brief five month interim of the Chief Accounting Officer, Mr. Chism, as interim CFO following Mr. Wolfe's sudden departure.

    I believe that EZPW is committing accounting control fraud and I am short EZPW.

    (click to enlarge)

    Their auditor BDO LLP has been publicly censured by the PCAOB for audit failures

    Their growth through acquisition strategy involves lots of accounting assumptions, and provides plenty of opportunities to inflate earnings and asset values. All these acquisitions also create opportunities for Morgan Schiff to siphon off cash through expense account embezzlement, fees, etc...

    They have the worst corporate governance I've ever seen for an American company, it's as bad as a Chinese RTO. The most recent CFO, Mr. Stamp reported directly to the Executive Vice President in charge of Aquisition and Investment, Mr Kuchenrither. When Mr. Stamp recently fled Mr. Kuchenrither was appointed CFO, so now he is both EVP in charge of Acquisitions and Investment as well as CFO. The fox is guarding the hen house, and there couldn't be a better setting for looting through M&A at artificially inflated prices. Mr Kuchenrither now both acquires pawn shops and decides their carrying value thereafter.

    Disclosure: I am short EZPW.

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  • rrurban
    , contributor
    Comments (62) | Send Message
    This is a great article. There is a lot of opportunity for someone to really research this company and expose the truth. The quarterly calls are a complete joke with complete disregard for shareholder concerns and an absence of real talk. You know, basic things any owner would want from management (what is happening in the business, how we failed, what we're doing to change it, what we see on the horizon, etc). Total BS from this company. It's the obviousness of their actions that makes me think there is real fire behind your smoke.
    30 Apr, 11:14 PM Reply Like
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