Cash America: Spin-Off Of Its E-Commerce Business Should Unlock Substantial Value
Eight Diamonds Advisors • 13 Comments
Eight Diamonds Advisors • 13 Comments
Oct. 29, 2015, 11:17 AM
- Q3 EPS of $0.19 met expectations, gained 19% on an adjusted basis from one year ago, and fell above the midpoint of company guidance of $0.17-$0.20.
- The board authorizes another 3M shares to be added to the buyback plan, bringing the total to 3.74M shares. In the year's first nine months, Cash America (CSH +4.9%) bought back 3.258M shares at an average $24.75 each.
- Previously: Cash America EPS in-line, misses on revenue (Oct. 29)
Oct. 21, 2015, 10:16 AM
- With the stock up 29% this year and trading at roughly his $30 target price, analyst Henry Coffey downgrades Cash America International (CSH -3.6%) to Neutral from Buy.
- Big-picture economics since September - including gas prices, employment numbers, and product intrusion - has resulted in U.S. same-store pawn loan and pawn revenue growth being modest to negative, and this trend should continue, says Coffey.
- He expects the company to complete its 4M share buyback plan by year-end, and sees Q3 results as coming within the $0.17-$0.20 per share EPS guidance.
Mar. 6, 2015, 3:23 PM
- SAF Capital says discussions with "various market participants" has led it to believe there are "multiple parties interested in acquiring" Cash America (CSH +5.7%) in a "take-private" transaction.
- SAF says it maintains its view that CSH can generate higher returns for shareholders via an aggressive public recapitalization, and says the company is not sufficiently taking advantage of the opportunity to create shareholder value via open market share repurchases.
Feb. 9, 2015, 12:48 PM
- Complaining that payday lenders have become too expert at working their way around state laws aimed at clamping down on usurious short-term loans, the Feds are about to get involved for the first time, with the CFPB set to release a first draft of rules targeting payday lenders.
- At the center of the new regulations - a requirement that lenders assess whether borrowers can actually repay the loans at the end of their short periods. The data suggest few can, which leaves borrowers with no choice but to roll over loans, accept new fees, or taking out new loans altogether. The CFPB found borrowers took out a median of 10 loans over a 12-month period, with median fees of $458, median amount borrowed of $350M. More than 80% of loans were rolled over or renewed within two weeks - manna to the lenders, and the bureau is now taking dead aim.
- World Acceptance (WRLD -2.4%), Cash America (CSH -1%), Regional Management (RM -1.3%), First Cash Financial (FCFS -0.7%)
Dec. 3, 2014, 5:39 PM
Nov. 13, 2014, 12:48 PM
Jun. 13, 2014, 10:26 AM
- The costs for the Enova spinoff will weigh on earnings in the short-term, says FBR Capital, cutting Cash America International (CSH -4.5%) to Market Perform with price target cut to $46 from $48.
Apr. 10, 2014, 12:45 PM
Mar. 14, 2014, 12:21 PM
- World Acceptance Corp. (WRLD +3.9%) is bouncing from yesterday's plunge on its receipt of a civil investigative demand (CID) from the CFPB, but today it's the turn of Springleaf Financial (LEAF -4.8%) and Santander Consumer (SC -1.3%) to head south.
- World's "sleazy" marketing tactics have been talked about for some time from Citron Research to Whitney Tilson to Herb Greenberg. Shorting the stock is a favored play of the hedge fund crowd which has been pushing D.C. to move against the company for several months.
- Also moving: CSH, EZPW, DLLR, ATLC
Jan. 17, 2014, 11:02 AM
- World Acceptance Corporation (WRLD -3.2%) slides on heavy volume after Whitney Tilson reiterates his short in the specialty consumer lender, calling it among the "scummiest, most predatory financial companies."
- Earlier coverage of WRLD
- Others of note: Springleaf Financial (LEAF -0.4%), Atlanticus Holdings (ATLC -1.8%), Cash America (CSH +0.4%), EZCORP (EZPW -0.8%), DFC Global (DLLR -2.5%).
Oct. 24, 2013, 12:45 PM
Aug. 29, 2013, 10:23 AM
- Cash America (CSH +3.4%) pops as FBR upgrades the shares to Outperform from Market Perform citing decreased competition and the likelihood of accelerated growth.
- Price target is $50.
- In another recent upgrade, Janney Montgomery said the stock trades at an "excessive discount" as payday regulation concerns are largely priced in.
- See also: SA contributor Paulo Santos says "temporary hardship" has created an opportunity in the shares as "the business is still growing quickly and would otherwise merit a premium valuation."
Aug. 20, 2013, 2:34 PM
- Cash America International (CSH +7.6%) soars after Janney Montgomery upgrades the shares to Buy from Neutral.
- The stock currently trades at an "excessive discount" as the market has more than priced in "the risk of negative payday regulation."
- Price target is $49.
- Peers trading higher include FCFS +1.9% and WRLD +2.8%,
Jan. 18, 2012, 1:17 PMCash America (CSH -7.5%) takes a hit after warning late yesterday that its 2011 EPS would be short of the mark due to higher installment credit costs and narrower margins. Separately FBR cuts the shares to Market Perform on the news, saying it's going to take time for condiditons to bounce back to more normalized levels. | Jan. 18, 2012, 1:17 PM
Oct. 20, 2011, 11:23 AM
Sep. 15, 2011, 3:30 PM
Payday lender Cash America (CSH +6.1%) says it plans to divest a majority ownership of wholly-owned subsidiary Enova International in an IPO; it would retain 35%-49% of its ownership interest.| Sep. 15, 2011, 3:30 PM
Cash America International, Inc. provides specialty financial services to individuals in the U.S. and Mexico. The company offers secured non-recourse loans commonly referred to as pawn loans. It also offers short-term cash advances under the brand names Cash America Payday Advance and Cashland.... More
Industry: Credit Services
Country: United States
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