Advance America, Cash Advance Centers (AEA)

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.

I hate these types of payday loan services but with america tightening its belt this more and more people are going to turn to payday loans. With this stock beat down low enough to offer a 7% dividend I'm in.

AEA took a profound hit in late July as a result of the general flight from lending stocks and political meddling in their cookie jar, especially in PA. A general skittishness about banking stocks, and 'bad' news out of PA and a one penny negative surprise in earnings per share was all it took to panic investors.

BTW, I like the way AEA has responded to the meddling by PA politicians; by closing all 66 storefronts after PA made it unprofitable to make loans to service members. Much the same as Walmart did when faced with a store unionizing; they closed it.

It makes no more sense to keep a potentially unprofitable storefront than it does to keep a potentially unprofitable stock.

So, here we have a strong company with a profitable business that had been trading in the $13-$15 range for 2.5yrs. Panic selling has reduced it's price to the $9 range, and it's Christmas time, I'd bet business picks up this time of year and just after...

Since price increases for this company have been historically gradual, with precipitous panicked drops. I expect the price will gradually rise again to about $14, give or take a few week long hiccups.

stock was slammed because of states where they operate with known problems. no issue in core business, growth will lean toward states with fewer regulatory hurdles. nice opportunity to take advantage of market volatility.

Turn around stock, expanding locations and services, growing trend in financial services

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.

a real winner

Another threat from Pennsylvania gives another opportunity to invest. If I were a gambler, I might wait until tomorrow hoping for a better price, but this one will do for now.

growth company, good dividend, growing dividend, regulatory requirements create a barrier to entry for competitiors, huge returns on capital, sss should be excellent for years as their stores are very immature, risk of writing bad loans is limited due to the short term of the loans.

will hold steady, but can see it exceding eight dollars

Unfairly hit during this credit crisis

oh well, good buying opportunity

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.

undervalued, good cash flow

Mortgage extensions and rising inflation will have more and more people spending their paychecks before they get them. Companies like AEA serve as short-term banks for those whose credit is too bad for more formal banking.

Plus it's taken a HUGE hit of late.

credit card service

financial services

Faces disruptive competition from online lending

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

Cheap stock with room for growth.