Bookselling

Guru Action on Payday Loan Stocks

gUru investors have always seen the potential to serve a wide range of underbanked consumers with creative financial services and unsecured short term loans. Here’s a close-up on two payday lenders, both down about 30% over 12 months. DFC Global Corp. ( DLLR ) provides alternative financial services and provides unsecured consumer loans on its internet platforms, with recent quarterly revenues of over $ 59.8 million for this segment of its business. QC Holdings Inc. ( QCCO ), the highest-performing payday loan company in the consumer credit industry, according to SmarTrend, is at its lowest for 52 weeks.

QC Holdings Inc. ( QCCO )

QCCO’s stock price is currently $ 2.37 or 34.9% lower than the 52-week high of $ 3.64. Its dividend yield is 8.40%.

Down 31% year-over-year, QC Holdings Inc. has a market cap of $ 41.2 million and is trading at a P / E of 48.40 and a P / B of 0.50.

Founded in 1984, QC Holdings Inc. has 500 branches in the United States, offering a variety of financial services that include payday or short-term loans, check cashing, money orders and money transfers. QC Holdings has three operating segments: Financial Services, Automotive and Electronic Lending.

For the second quarter of 2013, the company reported net income of $ 341,000, down from the second quarter of 2012 at $ 1,728,000. QC Holdings also reported a 3.6% quarter-over-quarter revenue decline to $ 40.7 million. For the six-month period ended June 30, 2012, the company reported income from continuing operations of $ 7.2 million and sales of $ 86.4 million.

Guru action: In the second quarter of 2013, a guru owns shares of QCCO and there are recent insider sale .

As of June 30, 2013, Jim simons is the sole shareholder guru, holding 60,200 shares, after increasing its position by 3.68%. Its shares represent 0.35% of the shares in circulation.

In the second quarter, he sold 2,300 shares at an average price of $ 3.03 for a loss of 21.8%. More than five years of lost shifts, Jim simons averaged a 56% loss on 49,200 shares purchased at an average price of $ 5.34. It also lost 46% on 13,700 shares sold at an average price of $ 4.36 per share.

Follow-up of share price, turnover and net income:

DFC Global Corp. ( DLLR )

The DLLR share price is currently $ 11.62. The company does not pay a dividend.

Down 30% year-over-year, DFC Global Corp. has a market cap of $ 456.7 million and is trading at a P / B of 1.10.

Founded in 1990, DFC Global Corp. is a non-bank provider of alternative financial services, unsecured short term consumer loans, secured pawn shops, check cashing, gold purchasing, money transfers and debit cards rechargeable prepaid cards, serving unbanked and underbanked consumers. . The company currently has more than 1,500 retail outlets and several Internet platforms in 10 countries in Europe and North America. In addition to its retail stores, the company offers unsecured short-term consumer loans on the Internet in the UK, Canada, Sweden, Czech Republic, Spain and Poland under various brands.

The company released financial results for the first quarter of fiscal 2014 ended September 30, 2013, with revenue down 5.5% from the same quarter a year ago, to 261.6 millions of dollars. Diluted earnings per share were $ 0.16. DFC’s unsecured consumer loan revenue was $ 170.2 million, also down 2.7% from the same quarter a year ago. Internet lending generated $ 59.8 million in revenue for the quarter, also down 19.7% from the same quarter a year ago. Up 10.3% year-on-year, pawn shops generated quarterly revenue of $ 21.9 million. The company’s adjusted EBITDA was reported at $ 48.9 million, down from $ 72.9 million for the same period last year.

Guru action: In the third quarter of 2013, the last shareholder guru, Manning & Napier Advisors, sold its position, offloading 686,030 shares at an average price of $ 13.68 for a loss of 15.1%.

The company made a new purchase of 686,030 shares at an average price of $ 14.44 for a loss of 19.5% in the second quarter of 2013.

There is no recent DLLR insider trading to report.

Follow-up of share price, turnover and net income:

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.