A publicly held automotive retailer in the United States. Its operations are conducted through two operating subsidiaries, America's Car-Mart, Inc and Colonial Auto Finance, Inc.
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The company faces sigficant headwinds going into 2012 and I don't see them getting any better. Cost for use vehicles have gone up and will impact their bottom line. They are also targeting the low end segment of customers who have no or limited credit or impaired credit. With a looming recession coming along, their customer make up should increase their delinquencies.
Another worrying trend is the increasing rate of reserves for delinquent accounts. You don't increase that unless your expecting harder times to come up.
One more interesting tidbit: Arkansas apparently is working to amend their constitution to lower interest rates for non bank loans. Arkansas is their biggest customer base apparently with over 45% of receivables coming from that state. That is a huge risk for if it goes against them, their earnings will be hit hard.