Unique Ownership Structure Holding EZCorp's Stock Down, It's A Gem In The Rough

Aug. 11, 2021 4:24 PM ETEZCORP, Inc. (EZPW) StockFCFS, EZPW48 Comments
Orange Ranger
791 Followers

Summary

  • Undervalued pawnshop operator with multiple catalysts to unlock value.
  • Persistent discount to closest peer due to ownership structure.
  • Excess cash can be deployed to fund lending growth, M&A, and potential capital distributions.
  • Performing in good economic conditions and a hedge in time of economic headwinds.
Pawn Shop Sign
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Introduction

EZCORP (NASDAQ:EZPW) is a listed pawnshop operator with presence in the US and Latin America. It has 1,143 pawn shops and recently acquired a large pawnshop operator in Mexico City.

Source: EZCORP, 3QFY21 Earnings Presentation

EZCORP is a fantastically

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Non-bearded medium rare value investor finding ideas that are undervalued, and unloved, misunderstood or underfollowed. Preferably all of it.20+ years in private equity, M&A and other lateral thinker roles. Unconstrained approach to invseting.Investing success is based on skill and luck. One way to finetune skill for me is by writing down an investment thesis since it gives me time to reflect on self-congratulatory thoughts that are a disguise for behavioral pitfalls or potential stupidity.An 'I don't know mentality' is a good tool to think through uncertainty. Therefore all my investments are bets in the non gambling sense of the word based on weighted probabilities of scenarios and expected returns.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of EZPW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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