One thought, even if a recession does take hold, shouldn't pawn shops/check cashing/ payday loan sector outperform? One thing to fear though I suppose is more anti-predatory legislation.
Hi Big Sully,
You noticed this too. Actually in my area it was one of the many items that got me very nervous about this market starting last fall. We now have one of these stores on almost every corner. I think they are starting to overtake coffee and donut shops. In my opinion just another leading indicator of the coming credit crunch.
Quasi
Good idea to play with pawn shop stocks!
Here is a list to start off with;
FCFS"First Cash Financial Services, Inc. provides specialty consumer finance products through pawn stores in the United States. Its pawn stores engage in consumer finance and retail sales activities, as well as in the small consumer loans, advancing money against pledged tangible personal property, such as jewelry, electronic equipment, tools, sporting goods, and musical equipment. The company�s pawn stores also retail previously owned merchandise acquired through collateral forfeitures and over-the-counter purchases from customers; and offer short-term payday advances or a credit services product. It also operates stand-alone payday advance stores that provide a range of consumer financial services products, including payday advances, credit services, check cashing, money orders, money transfers, and prepaid card products. As of December 31, 2005, the company owned 226 pawn stores; and 102 payday advance stores, as well as operated 40 kiosks located inside convenience stores. First Cash Financial Services was founded in 1988 and is based in Arlington, Texas."
CSH"Cash America International, Inc. engages in the ownership and operation of pawnshops in the United States. It provides pawn loans, short-term cash advances, check cashing services, and other specialty financial services to individuals. It also sells merchandise in its pawnshops primarily the personal property forfeited through its pawn lending operations. As of December 31, 2006, the company owned and operated 487 pawnshop locations, including 12 franchised pawnshops under the brand names Cash America Pawn and SuperPawn in 22 states. Cash America also offers unsecured cash advances through its pawn lending locations and its cash advance locations. In addition, the company provides check cashing services and other retail financial services through Internet, such as stored value cards, money orders, and money transfers. It also owned and operated approximately 295 stand-alone cash advance locations and 136 check cashing locations, as of the above date. Cash America was incorporated in 1984 and is headquartered in Fort Worth, Texas."
EZPW"EZCORP, Inc. operates in the specialty consumer finance industry in the United States. It lends or provides credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. The company offers non-recourse loans collateralized by tangible personal property, such as jewelry, consumer electronics, tools, sporting goods, and musical instruments, as well as sells merchandise primarily collateral forfeited from its pawn lending operations to consumers. It also provides short-term non-collateralized loans, known as payday loans, or fee-based credit services to customers seeking loans (collectively �signature loans�). As of September 30, 2006, EZCORP offered pawn loans from its 280 EZPAWN locations; and signature loans from its 334 EZMONEY loan stores and 82 EZPAWN locations. The company was founded in 1989 and is headquartered in Austin, Texas."
