Author Topic: EZPW - EZCorp  (Read 92330 times)

Homestead31

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Re: EZPW - EZCorp
« Reply #260 on: February 04, 2019, 06:00:05 AM »
https://www.businesswire.com/news/home/20190204005203/en/EZCORP-Retire-Convertible-Notes-Cash-Hand

The convertible bonds due in June 2019 will be retired.  I think this is a positive, as alot of people have been afraid that the company would refinance them at a lower convert price.  Basically this suggests that capital allocation is improving, as one would expect since they made the change to management's comp structure. 

i am not saying that all of a sudden we have Outsider type capital allocators on our hands, but I am saying that this stock is crazy cheap.  it is recession proof, growing well, with room to improve margins, and it is trading below estimates of break up value.  that can't last as long as management is disciplined, which it seems like they are now.


deseretalts

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Re: EZPW - EZCorp
« Reply #261 on: April 09, 2019, 01:37:50 PM »
Well adding 6 new independent directors to the board doesn't get rid of Cohen, but its something.

KJP

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Re: EZPW - EZCorp
« Reply #262 on: September 19, 2019, 07:17:29 AM »
Cohen's back!  I love the market reaction.

racemize

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Re: EZPW - EZCorp
« Reply #263 on: September 19, 2019, 07:33:37 AM »
Cohen's back!  I love the market reaction.

The compensation package is insane.  Glad I sold this nonsense.

mwtorock

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Re: EZPW - EZCorp
« Reply #264 on: September 19, 2019, 07:41:00 AM »
Cohen's back!  I love the market reaction.

The compensation package is insane.  Glad I sold this nonsense.

Yeah, i was just to say the same thing lol. the net profit of all other shareholders vs. Cohen -- insane!

Foreign Tuffett

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Re: EZPW - EZCorp
« Reply #265 on: September 19, 2019, 12:13:32 PM »
I refuse to believe that a company that owns and operates pawn shops has bad corporate governance.

bilo

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Re: EZPW - EZCorp
« Reply #266 on: October 08, 2019, 06:35:10 AM »
Investors are really throwing in the towel on this.   Anyone see news as to why this is down big (again) this morning?  I see trustee change but don't see how this is significant economically.   With new compensation Cohen certainly had incentive to start marking period at a low level (more phantom shares issued) and then have good share performance over next 12 months.  Not saying it is engineered, however don't see it as all that terrible.   Any thoughts here? 

whistlerbumps

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Re: EZPW - EZCorp
« Reply #267 on: October 08, 2019, 06:39:00 AM »
Jefferies downgraded to hold

We are downgrading EZPW to Hold based on corporate governance actions which, in our
minds, represents misalignment with non-voting shareholders. While we acknowledge
that valuation is below LT averages, we find it difficult to recommend EZPW given the
history of controversial actions by the owner of 100% of the voting shares, who was just
appointed as Executive Chairman of the Board, despite a history of non-alignment. Our
PT is $6.50, which is ~7.5x CY20 EPS.

bilo

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Re: EZPW - EZCorp
« Reply #268 on: October 08, 2019, 06:43:16 AM »
Thanks Whistlerbumps.  The Co. is already famous for governance problems and disputes, in light of this I saw the phantom shares as a positive.

KJP

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Re: EZPW - EZCorp
« Reply #269 on: October 08, 2019, 08:09:55 AM »
This is a good illustration of why it can be a mistake to believe that a controlling shareholder must want a high share price because he or she owns most of the equity.  The reality is that, unless they are borrowing against their shares or have mark-to-market issues (e.g., a fund), controlling shareholders really only care about the price of their shares when they sell them.  The share price at any time before that is irrelevant to them, and thus they may prefer to effectively loot the company via, e.g., excessive compensation, even if it causes the share price to decline, knowing that any buyer would still pay full price for the business in a sale that eliminates the problematic comp/governance.