Aaron's, Inc. (NYSE:AAN)

Facing damning allegations of spying on its customers with webcam and keylogger software, I think there's a good idea the share price will fall as this news spreads.

Covestor Model Manager BTC Impex bought AAN in his Long-Short Generalist Covestor Model ( http://covestor.com/BTC-Impex )

Macro trends favoring growth for this rental store.
Reasonable valuation.

Part of XHB

i love stock splits

0.4

Earnings up year over year, and the stock price is down year over year..Revenue up 11% year over year..P/E around 15, still a buy til P/E hits about 20

Low cast alternative to buying furniture, electronics in a market with high uncertainty.
AAN offers its on financing therefore does not rely on banks and their flicked credit-score/to loan interest rate.

Low end consumer financing

Testing a portfolio of companies that start with the letter "A".

The numbers all look right. Almost everything I love about a company is here. Management is experienced and loves the company. The Financials are all crisp as a dollar bill. So why the thumbs down. Its the sub-industry. Rent to own and specialty retail and expansion do not coexist well. And in a more general way home furnishing retail is not a good long play.I know this is a beloved darling right now, but when the analysts tell you to buy... its usually because they have already bought.

Will underperform in the near term but is a great buy at its current 52 week low stock price.

Defence is big business

Strong company with solid grow. I like the business model and the are doing the job pretty good. And it is a recession save stock in my opinion. In harder times people tend to rent instead of buying.

With the frequent change of technology and its price, companies such as this should do well. The stock is priced well and will grow.

I built a new stock screen using Microsoft Money. Quality Value Picks. I do not discriminate. If it pops up, I'm rolling with it. I trust my fundamental screening criteria.

The company is growing at a 20% annual rate.

to many good things in the works to not increase same store sales and profits big time

Aaron Rents Inc. is a rental and leasing services company, engaged in lease ownership as well as specialty retailing of consumer electronics, household appliances, accessories, and residential and office furniture. The firm operates 1,300 stores, including company-operated and independently owned or franchised stores, in 47 states, Puerto Rico and Canada. Aaron Rents’ Sales and Lease Ownership division accounts for 90% of its gross revenues, while the Corporate Furnishings and MacTavish Furniture Industries segments contribute for the balance making it a leading player in the rent-to-own industry.

The $6.6 billion rent-to-own industry allows customers to rent electronics, furniture and appliances, and then to purchase them if they wish. However, the industry is saddled with macroeconomic trends such as higher interest rates, a housing market in decline and a negative savings rate, which can have adverse effects on its growth rate. The market remains highly competitive, and Aaron Rents contends for market share with Rent-A-Center Inc and Wal-Mart’s rent-to-own segment. To differentiate itself from its peers, the Aaron Rents follows a strategy that is based on a few flexible payment methods, lower costs, wider product selection and large store layouts. Rent-to-own customers usually cannot shell out big amounts of money up front hence; the company sees a great potential for leasing products.

The company posted impressive results for the Q3 2006, as revenues grew 14% while net income practically doubled due to sharp cost cutting measures focusing on employee overtime budgets and fuel consumption which will benefit the company over an extended period of time. To improve its revenue stream, it pursues a multi-pronged strategy of forging alliances, acquisitions and internal expansion. For instance, during the quarter, the company opened 12 company-operated stores and 15 franchised stores. For FY 2007, the company has targeted to add 150 company-operated stores and 100 franchised stores. A well-organized expansion strategy with sharp cost cutting measures makes Aaron Rents a likely outperformer.