How bad is it? Pawn shops, payday lenders are hot Excerpt:
As the jobless rate inches up and the economic recovery sputters, investors looking for a few good stocks may want to follow the money or rather the TV, the beloved Fender guitar, the baubles from grandma, the wedding ring. Profits at pawn shop operator Ezcorp Inc. have jumped by an average 46 percent annually for five years. The stock has doubled from a year ago, to about $38. And the Wall Street pros who analyze the company think it will go higher yet. .... Stock in payday lender Advance America Cash Advance Centers (AEA) has doubled from a year ago, to just under $8. Rival Cash America International Inc. (CSH) is up 64 percent, to $58. Such firms typically provide high interest loans due on payday to people who can't borrow from traditional lenders. Profits at Encore Capital Group, a debt collector that targets people with unpaid credit cards bills and other debts, rose nearly 50 percent last year. Encore has faced class action suits in several states, including California, over its collection practices. The Minnesota attorney general filed a suit in March. No matter. The stock (ECPG) is up 59 percent from a year ago, to more than $30. Stock in Rent-A-Center (RCII), which leases televisions, couches, computers and more, is up 57 percent from a year ago to nearly $32. Nine of the 11 analysts covering the company say it will rise further and that investors should buy it. ... Desperation stocks continue to be lifted by a drumbeat of bad news. Consumer spending, adjusted for inflation, has fallen for two months in a row the first back-to-back fall since November 2009. On Friday, the government reported the unemployment rate rose to 9.2 percent in June, sending stocks in tailspin. On top of that, one in seven Americans now live below the poverty line, a 17-year high. ... "Here we are celebrating the second year of recovery and confidence is at levels consistent with a recession," says David Rosenberg, an economist at money manager Gluskin Sheff. "The folks in the survey are probably not the same folks shopping at Tiffany's." (That company's stock is also up nearly 50 percent since March, to about $82.) But they probably are shopping at Dollar General Corp. Stock in the discount retailer recently hit $34.13, up 50 percent from its IPO in late 2009. And it may be worth about a third more, at least according Avondale's Montagna. "People are broke. They're all chasing value. It's a seismic shift in mindset," he says. ... In investing, its often better to focus on what you can safely predict, even if that safety is found in companies that thrive on hard times. One good bet: The jobless arent likely to find work anytime soon. And companies profiting from their bad fortune will continue to do so. Read more here: http://www.suntimes.com/business/6445605-420/how-bad-is-it-pawn-shops-payday-lenders-are-hot.html This is an AP article. J - The fact that we are here today to debate raising Americas debt limit is a sign of leadership failure. Leadership means that the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase Americas debt limit. - Barack Obama "I will not rest until businesses are investing again and businesses are hiring again and people have work again," - Barra ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:340316 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm