EZCorp made some huge mistakes, but brand brand new administration has it poised for a effective turnaround.
IвЂ™ve implemented the pawnshop and payday financing area for 10 years. Probably the most interesting plays in the sector is EZCORP (NASDAQ:EZPW), which effectively offered pawn and pay day loans for quite some time. The business expanded prudently, had an excellent stability sheet, making money that is good.
Then a number of things went incorrect.
If the financial meltdown hit, the cash advance company suffered since borrowers need a task getting that loan. The individuals joined other customers who began attempting to sell their jewelry that is gold when hit all-time highs of $1,700. The end result had been a sequence of monster quarters for EZCorp stock, and an all-time stock that is high of $35.58.
Then prices that are gold, so that the pawn business dropped down. The crash that is gold Abermarle & Bond, A british pawn procedure that EZCorp possessed a long-standing strategic investment in. EZ just has one shareholder that is voting and then he place a complete brand brand new administration group in position. These brand new hires had no clue what they had been doing, spent the big bucks on bad purchases, as well as the stock has cratered to $9.
Now, EZCorp stock has returned on course. The idiots have already been run down and skilled administration place in to guide the organization, that is going back to its main expertise of pawn shops along with other customer financing.
Joe Rotunda, the man whom actually expanded EZCorp from the 100 shop platform to todayвЂ™s 1,000 stores, in back in the Board of Directors. Read more