Pawn Your Portfolio for EZ Corp
EZCorp (EZPW) is a pawn shop outfit that makes money off the misfortunes of those that fall victim to recessionary events. High inflation, lower home prices, lower stock market, higher unemployment – all these factors lead to people pawning off their valuables. EZPW also offers payday and other types of collateralized loans. In the existing economic climate, such a company tends to do extremely well. The stock broke out to the tune of 25% this last week while the broader market fell to multi-year lows. The company carries no debt and trades at a mere 11 times 2009 earnings with a PEG ratio of 0.74. From both a technical and a fundamental standpoint, this stock seems to be a buy.
I recommend buying at these levels.
– Faisal Laljee
Full Disclosure: I don’t own EZPW but my position can change anytime without notice.
