Conn's, Inc. (NASDAQ:CONN)

CAPS Rating: 2 out of 5

The Company is a specialty retailer of home appliances and consumer electronics. It sells home appliances, consumer electronics, home office equipment, lawn and garden products, mattresses and furniture.

Results 1 - 20 of 50 : 1 2 3 Next »

Recs

0
Member Avatar John7d (< 20) Submitted: 7/8/2014 9:21:51 AM : Outperform Start Price: $49.44 CONN Score: -14.31

I was into one of the stores yesterday, and I was very impressed. With a combination of electronics, furniture, appliances, and knowledgeable sales people it was a great experience.

Recs

0
Member Avatar Fishbone (< 20) Submitted: 5/10/2014 6:20:06 AM : Outperform Start Price: $41.00 CONN Score: -0.97

Consumer finance company pretending to be a retailer. They service a growing market with limited competition.

Recs

0
Member Avatar AnsgarJohn (99.21) Submitted: 5/7/2014 4:25:16 PM : Outperform Start Price: $46.58 CONN Score: -14.01

Neg cash flow = financing? Insider buying

CAMPBELL ELIZABETH STEPHENS 10% Owner 2014-04-14 Buy 106,034 4,412,523 $39.5 4188.3 2.94 Link
Stephens W. R. Jr. 10% Owner 2014-04-14 Buy 152,746 4,458,708 $39.23 5992.2 3.65 Link
MALSON KELLY M Director 2014-04-10 Buy 4,500 9,328 $39.58 178.1 2.73

Recs

0
Member Avatar bakezhan (< 20) Submitted: 2/26/2014 2:46:13 PM : Outperform Start Price: $35.50 CONN Score: +12.83

They have a stong model of business. I may predict that, we need to buy assets.

Recs

0
Member Avatar 2gud2btrue (82.06) Submitted: 2/21/2014 10:22:29 AM : Outperform Start Price: $33.76 CONN Score: +18.88

I was one of those fools who was bullish on conn in 2010 @ $7 held for around a year and sold it at par price as I panicked when it started faliing. And boy over the years did I regret that decision big time, I was just watching it last week just below its at all time high of $55 and thinking what it would have been if I would have held it for couple of more years and then came the drop yesterday.
Moral: Fool me twice shame on me, I am in and here to stay target $70...

Recs

0
Member Avatar joaquingrech (98.61) Submitted: 2/20/2014 10:13:59 AM : Outperform Start Price: $37.20 CONN Score: +6.57

valuation

Recs

0
Member Avatar IlluminatInvest (69.85) Submitted: 1/14/2014 6:14:41 PM : Underperform Start Price: $66.98 CONN Score: +44.14

Growth relies on aggressive expansion and loose lending standards without keeping enough in reserve for likely higher levels of defaults in the future on the consumer loans they make to support sales.

Recs

0
Member Avatar skiersteve3 (< 20) Submitted: 8/16/2013 1:57:27 PM : Outperform Start Price: $64.20 CONN Score: -53.26

BUY conn on the recent dip (<64) caused by the recent Walmart earnings....i fully expect the stock to hit the mid seventies after their sep earning impress yet again Target $80 by January 1

Recs

0
Member Avatar investq (99.02) Submitted: 8/13/2013 5:54:43 PM : Outperform Start Price: $68.24 CONN Score: -54.60

Texas chain growing fast

Recs

2
Member Avatar PatrickTMF (93.93) Submitted: 8/7/2013 10:37:15 PM : Outperform Start Price: $6.35 CONN Score: +483.14

Conn's Inc. is making a solid comeback from when I first picked this stock. It's almost a 10 bagger as I write this pitch. It's been slowly shifting from the razor thing margin business of selling electronics to a more cushioned mattress of margins... i.e. bedding, furniture, and appliances. This company is still growing with a little over 70 stores and they've been in business for nearly 120 years. The company prides itself on customer service and helping those consumers with no credit or somewhat bad credit purchase larger ticket items with no interest financing through GE Capital Bank. They also have their own in house credit for their customers as well. I have several family members that have worked for the company and they have good compensation and decent benefits for their employees, giving it a more Costco like atmosphere with people that work there who actually want to be there. The sales representatives are very knowledgeable about the products they sell creating a more personal buying experience. Insider ownership is just under 33% with ROE and operating margins in the double digits. GO LONG!! FOOL ON!!!

Recs

0
Member Avatar tipsytom (< 20) Submitted: 1/25/2013 2:31:23 PM : Underperform Start Price: $27.77 CONN Score: -21.74

SCSS bombed, afaik they dont' carry TPX. NOt sure how their furniture biz might be, but other categories have been in declining trend, there's not an obviously reason why that would turn around.

Recs

2
Member Avatar jed71 (31.29) Submitted: 7/6/2012 1:34:50 PM : Underperform Start Price: $16.10 CONN Score: -118.73

This company relies on folks with crappy credit to come in and purchase appliances / mattresses on credit. This type of consumer loan is called PMSI (purchase money security interest)- and it comes with much higher risks and default rates. Reason being, as the assets the consumers purchase deteriorate, the buyers are less likely to continue to pay for them. Many come with no payment or interest for 12 months (or longer), or other fancy terms to "induce" buyers to make the purchase. Most of these terms have a hidden cost to consumers, which many do not fully understand. Conn's is getting themselves back into the same situation they were in during late 2008 / early 2009. They are building up receivables, but not turning them over for cash. You can see their cash from operations balances beginning to decline (quarter over quarter). I would be careful with this one - if the US economy continues to falter, this one will fall fast and hard.

Recs

0
Member Avatar NoDoughBro (70.62) Submitted: 11/9/2011 1:16:44 AM : Outperform Start Price: $10.44 CONN Score: +250.78

Holiday Season jump right along with HGG.

Recs

0
Member Avatar sharktrade (< 20) Submitted: 11/8/2011 10:14:55 AM : Outperform Start Price: $10.01 CONN Score: +270.84

must be tracked media appliance is new convergence trend

Recs

0
Member Avatar Jeremiah33Three (59.27) Submitted: 10/1/2010 12:48:52 PM : Outperform Start Price: $4.60 CONN Score: +756.66

OCTOBER 2010
@ or below 4.75 looking for at least 50%
GOD Bless

Recs

1
Member Avatar LupusLumpus (< 20) Submitted: 7/31/2010 8:30:20 PM : Outperform Start Price: $5.46 CONN Score: +606.44

Insider Buying and 50% loss in stock price can be a powerful but risky catalyst for profits.

Recs

1
Member Avatar gabwoodgab (32.28) Submitted: 2/12/2010 12:56:34 AM : Underperform Start Price: $4.52 CONN Score: -761.20

Having been burned by this baby on a recommended buy, I learned to do the hard research on a company BEFORE listening to the experts. CONN is going to fail by the same model that CIrcuit City crumbled to: trying to win on price against Best Buy. They are cutting service at all their stores by cutting staff, to compete on the margins, and will lose customers as they grow tired of waiting in lines to get advice, when they can go to Best Buy and wait in lines and save 5-10% more on every purchase.

Recs

0
Member Avatar itconsultant (54.01) Submitted: 2/1/2010 11:11:39 AM : Outperform Start Price: $5.62 CONN Score: +578.58

Undervalued on p/s and p/b
- profitable
- good insider holding.
-

Recs

3
Member Avatar jordangr (36.56) Submitted: 11/23/2009 6:32:57 PM : Outperform Start Price: $6.89 CONN Score: +440.58

Conn's sells home appliances and consumer electronics in 75 retail stores located in Texas, Louisiana, and Oklahoma.

Current Trading Metrics:

PE for FY 2010 Est. = 6.06x
PE for FY 2011 Est. = 5.18x

Compare this to a median for specialty retailers (BBY, BBBY, HGG, DELL, RSH) of:

PE for FY 2010 Est. = 15.92x
PE for FY 2011 Est. = 14.10x

Is this massive discount justified? My analysis says no based on three factors:

1. Analysts have downgraded this stock because of its geographic concentration in Texas. Analysts say that the Texas economy is showing delayed signs of the economic downturn therefore Conn's will face headwind over the next 9-12 months. Compare this to analysts projections for HHGregg (trading at a 19.59x PE multiple on FY 2010 estimates) which has concentration in the southeast and mid-atlantic. Supposedly growth prospects in those markets are greater because those markets are already in mid-cycle. I disagree with this analysis because I don't believe Texas is cycling on a lag; I believe Texas will suffer less of a cycle than the rest of the country because of the robustness of its economy in regards to housing. If you disagree with this, then by all means don't buy on the discount.

2. The absence of Circuit City from the electronics market will provide runway for sales growth over the next two years.

3. The company has an established niche market. Although it competes directly with electronics titan Best Buy in many of its locations, I believe its customer base is different in demographic and preference terms-customers seeking better service, more knowledgeable sales staff, and a more personalized buying experience.

In terms of risks:

Adj. leverage¹ 3.00x compared to industry median of 3.03x and HHGregg's multiple of 3.37x. I use adjusted leverage rather than straight leverage because of the prevalence of store leasing contracts among retailers.

The company does have more exposure to credit risk because of its credit program. Losses there have been significant but are likely reaching cycle highs.

Note: As of market close 11/22/09; All metrics calendarized to January year end to provide better comparison with Conn's fiscal estimates.
¹ Adjusted leverage = (Total debt + 8 x Rent expense) / LTM EBITDAR

Recs

1
Member Avatar ArgoNate (< 20) Submitted: 11/18/2009 4:26:43 PM : Outperform Start Price: $6.58 CONN Score: +470.61

Unbelievable company with an unbelievable business model trading at a 90% discount to its true value. Can't go wrong. Also, Current Assets minus Total Liabilities equals $198M. With the stock trading at $147M, the current trading price of the firm's aggregate fixed assets is -$51M. The market will pay you $51M to take the company's fixed assets off their hands.

Results 1 - 20 of 50 : 1 2 3 Next »

Featured Broker Partners


Advertisement