Advance America, Cash Advance Centers (AEA)

this is my thrid time in aea, I forgot to enter it once. Right now it seems to have a price range between five and six dollars, so I've bought it low and sold it high. all financials check out: 5/9 piotroski, 4.17 Z score, 4 stars,pe-7, peg-.51. It's a small cap making money with a 5% dividend, just what I like.

high safe yield

Low relative PE, good chart, star ratings & 2010 earnings. Bottom fishing week of 10/26.

super low EV\OCF, reasonable ROA
Are people scared of a payday lending crackdown? I just don't see something like that happening, and definitely not in a way that would really hurt AEA.

will hold steady, but can see it exceding eight dollars

If this company can continue to improve with Government regulation, with the current economic times they will be around along time.

5

If I wanted a short-term loan like these. I'd go to a loan shark. They just abuse stupid people.

That short squeeze was IMPRESSIVE! I was a little early with this red thumb...but it won't be long before my pick turns GREEN!

I'm in on my real money portfolio. Bought at 3.40 and it gained 30% in two days, sold and rebought when it came back down around the same price.
I work at a major bank and due to the negitive press surrounding banks people for whatever reason do not want to have anything to do with the banks. Add that to the fact that the average American ( from what I have seem) has more debt then cash. The overleveraged consumer cannot go to the bank to cash there check where they owe money or have a negative account.

Talking to the people that work at AEA (who come in to make certified checks to complete the payday loan) say they have new products and services that should become very profitable going forward.

The American consumer is screwed banks willfully gave out to much money and to people who cannot afford these credit limits. They have maxed out the credit lines and cards and are SCREWED!

economies and human nature

Very smart company that knows how and where to make money. If the situation changes in an area AEA will not stay put but will move to better greener pastures. Exspecially with credit tightening and many loosing jobs this becomes a last chance for many people to make it. Very scary but as the way things are turning seems to be a very good logic to invest. When credit does loosen in the coming YEARS this stock will suffer as a result.

PS- I own this stock and lately its become one of my best performers. I am not long and just looking for the right time to jump ship.

It hurts for me as a fellow US citizen to choose this stock but the writing is all over the wall. High unemployment. You have to pay the piper some how.

AEA is cheap bottomed. The growth over the past couple years is good. People need cash advances. Expect at least a double. 20% dividend when it recovers.

P/E at <4.

Po' folk sure aren't going to get a credit card these days.

Very cheap at these prices, and should do well over the next few years. Credit is tight, and sometimes people need money quickly.

a real winner

This was an underperform for a long time primarily due to stupid state governments who think their subprime citizens "deserve" money at interest rates deemed acceptable by said governments. But now, after the crash, the stock is just too darn cheap at $2.27. They are continuing to operate normally in many states, and I can't imagine that the government crackdown on lenders, even hated "paycheck" lenders, will continue after people saw just how bad a credit crisis can get. Meanwhile the business model itself thrives in a recession. People denied normal loans and credit cards in the new environment just won't have many options, and even subprime borrowers can be profitable with fees and triple digit interest rates.

people don't save enough money in the U.S. and people love to spend it on stuff they don't really need. They will keep doing that until they can't get anymore new credit cards and paycheck loans are the next step. It will happen. Save more money please, until then, this stock is a keeper!