Craigla1

World Acceptance Has the Goods; Citron Doesn't

Oh, Larry, I am not listening to a blogger (well, some of what you say is worth listening to, but not all of it). Let's see how their vaunted customers can generate the cash flows to repay these loans.

Happy you're in the industry, and hopefully doing well, as you come up with blanks on IMDB.

Ostensible is the wrong word


On Sep 24 04:03 PM Larry Meyers wrote:

> Craigla1:
> You may have been a banker, but that you ascribe the reasons you
> do for the stock's current valuation shows you know little about
> the stock market.
>
> There are many reasons why a stock is valued the way it is. For
> every joker who points to a low PE as being a value trap, there are
> plenty of people who have made ten-baggers.
>
> THe Loan Loss Reserve to Non Performing Asset ratio is right there
> in the 10-Q's. I'm not your research assistant. Look it up for
> yourself.
>
> You ask " how do you have any faith they are reporting non-performers
> accurately? If you look at EVERY bank or financial institution (on
> down to BSC and LEH) that runs into trouble, they ALWAYS are very
> liberal in their accounting for things like bad assets."
>
> As I am actually IN the short-term and installment loan business,
> I see that their numbers are in line with those of all other public
> and private companies that operate in this space.
>
> In addition, you have provided no evidence that shows the WRLD is
> like "every other financial institution". Just because you say the
> others are "liberal" does not mean that WRLD is. Until you can provide
> more than speculation, I prefer to deal with facts.
>
> "Note I am not saying this is a short due to pending federal legislation
> or regs which will limit their rate setting ability."
>
> Good. Because today's big headline is that the CFPA will not have
> oversight over non-banks. So half of Citron's report just went bust
> without my help.
>
> "And AGAIN, if you're not an employee or LONG THE STOCK, then WHY
> are you combing their K and Qs to make a 15 point rebuttal of Citron?"
>
>
> Ah, yes, the last resort of the debate loser. Attack the messenger.
>
>
> The obvious answer is that I'm in the industry, but not associated
> with WRLD. An attack on WRLD is an attack on the industry.
>
> But here's a little lesson in logical debate. What if I actually
> did work for the company -- which I don't -- or that I am the long
> the stock -- which I am not ?
>
> Does it change any of the ARGUMENTS?
>
> Look at the MESSAGE, Craig, not the messenger.
>
> Attacking the messenger only works if the messenger is lying. <br/>
>
> I'm not lying. All the information is right there for anyone to
> find.
>
> You have attacked exactly one aspect of my argument. I've provided
> a rebuttal.
>
> If you are truly concerned about the points I've raised, or take
> issue with them, then why even listen to me?
>
> Call the company. I'm amazed at how many people challenge various
> assertions of mine and expect me to be the final arbiter.
>
> If you question the company's practices, call them. Get it from
> the horse's mouth. Why listen to a blogger?

World Acceptance Has the Goods; Citron Doesn't

And AGAIN, if you're not an employee or LONG THE STOCK, then WHY are you combing their K and Qs to make a 15 point rebuttal of Citron?

Very curious ....

World Acceptance Has the Goods; Citron Doesn't

Under-informed? That's laughable. I was a banker for 20 years.

What is their ratio of LLR/NPA?

And (again), how do you have any faith they are reporting non-performers accurately? If you look at EVERY bank or financial institution (on down to BSC and LEH) that runs into trouble, they ALWAYS are very liberal in their accounting for things like bad assets.

Note I am not saying this is a short due to pending federal legislation or regs which will limit their rate setting ability.

World Acceptance Has the Goods; Citron Doesn't

Do you work for the company? Clearly, you do, or are LONG the stock (despite your "disclosure). Why else would you have such intimate knowledge of WRLD's operations?

He doth protest too much ...

Please tell me why you believe the claim WRLD is rolling over very little of their bad debts. HOW could this be logical? Their borrowers are the bottom of the barrel in terms of credit quality. Look at unemployment (nearing 10%), and U6 (nearing 17%; if you need a definition, I'll provide it).

WHY would the market value this puppy at such a low PE multiple? BECAUSE the MARKET does not trust the quality of their earnings. This is classic.

Don't be fooled by a low PE (it's called a value trap).

In other words, the market feels their loan loss provision should be MUCH higher, which would depress stated earnings and result in a much higher PE ratio.

Payday Lender Stock Update

Larry: Re WRLD:

Citron has a phenomenal record. I have made a lot of money on their recommendations. That said, please justify the current price (let alone your $40 target) for WRLD, given:

1. It sells for more than book value

2. All lenders with a book of business in which charge-offs are very high sell for less than book (see COF), reflective of the Street's concern that assets haven't been adequately marked down.

Note, as well, the big ramp up in delinquencies at COF yesterday. I trust you don't think WRLD's customers have a greater ability to weather this economic storm. Unemployment continues to rise. U6 (which includes part-timers who want full-time work, plus discouraged workers) exceeds 16%. THESE are WRLD's customers!