$26.00 -0.62 (-2.33%)
11/6/2009 4:00 PM

World Acceptance Corp. (WRLD)

CAPS Rating: 1 out of 5

The Company is engaged in the small-loan consumer finance business, offering short-term small loans, medium-term larger loans, related credit insurance and ancillary products and services to individuals.

Current Price $26.00 Mkt Cap $422.5M
Open $26.29 P/E Ratio 6.29
Prev. Close $26.62 Div. (Yield) N/A (N/A)
Daily Range $25.67 - $26.47 Volume 145,269
52-Wk Range $10.31 - $30.87 Avg. Daily Vol. 261,000

WRLD News and Commentary

Caps

How do you think WRLD will perform vs the S&P 500?

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All Members

137 Outperform
134 Underperform
 

All-Star Members

34 Outperform
87 Underperform
 

Wall Street

3 Outperform
0 Underperform
 

Top WRLD Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

pytheian (98.82)
Submitted May 15, 2008

I'd pay $725.4M for World Acceptance Corp today because:

- PEG is .93x (vs 1.1x industry) while P/E is an acceptable 14x
- Is very profitable - margins are 61.1 gross, 25.4 op, 15.3 net
- 18.4% TTM Rev growth; 16.3% MRQ
-… More

mindmuse (99.88)
Submitted May 08, 2009

You know I wasn't really rushing to redthumb this, but lukasjkr's green thumb pitch just really inspired me. Let's see, lukasjkr has a rating of..., oh, no rating. Because he only has one pick, WRLD. And he's been a member since... big surprise, this… More

WRLD VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from members about WRLD.

Recs

0
Member Avatar JakilaTheHun (99.95) Submitted: 10/29/2009 1:54:57 PM : Underperform Start Price: $25.39 WRLD Score: -1.77

This is a risky red thumb because (a) WRLD's cash flows are spectacular and (b) the case against them requires the Federal government to act in order to stop usurious and predatory lending practices. All the same, I agree with Citron that at some point, the Feds enact legislation that will shut WRLD down and that, even if they don't, WRLD is using shady accounting practices in order to hide their bad loan expenses.

Do you seriously believe that a lender that gives out "non-payday" loans with rates upwards of 80%+ marketed at the lowest income individuals truly should have a provision for loan losses at about only 5% of their total loan portfolio? There are legitimate (but poorly run) banks that have losses higher than that right now!

For a much more in-depth case against WRLD, see Citron:

http://www.citronresearch.com/index.php/2009/09/17/

I've been reluctant to red thumb this for months just because, on the face of it, the company would appear very undervalued in relation to its cash flow production. I don't like red thumbing unless I feel absolutely sure a company is overvalued. But really ... this is just ridiculous. There are all kinds of red flags throughout their financial statements (including a constantly rising receivables balance) and this company is really skirting around the edges of legality to begin with. I don't really care about gaining points on this pick so much as I do this thing getting shut down once and for all. It's ridiculous in a country that is supposedly as developed as America, companies like this can operate legally.

Recs

0
Member Avatar LowMaintenance (37.80) Submitted: 10/13/2009 9:15:51 AM : Outperform Start Price: $26.78 WRLD Score: -2.33

Good numbers. Year over year growth in earnings, good return on equity, good price/cash flow, etc. Citron is not the only opinion out there: http://seekingalpha.com/article/163113-world-acceptance-has-the-goods-citron-doesn-t

Recs

0
Member Avatar hondo928 (99.74) Submitted: 10/2/2009 11:25:38 PM : Outperform Start Price: $23.57 WRLD Score: +6.20

Citron is usually right, this time they are wrong

Leaderboard

Find the members with the highest scoring picks in WRLD.

Score Leader

mkeszler

mkeszler (98.33) Score: +76.47

The Score Leader is the member with the highest score across all their picks in WRLD.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score Commentary
topspincharlie 61.14 1/14/2008 Outperform 5Y $22.69 +14.59% -20.91% +35.49
CapsContrarian < 20 6/17/2009 Outperform 5Y $16.97 +53.21% +18.18% +35.03
Baron0602 44.92 11/24/2008 Outperform 5Y $15.45 +68.28% +34.17% +34.12 1 Comment
ml6086 81.53 6/16/2009 Outperform 3Y $17.28 +50.46% +17.42% +33.04 1 Comment
cjccmc < 20 1/4/2008 Outperform 3Y $23.50 +10.64% -22.11% +32.75 1 Comment
fungebar < 20 1/4/2008 Outperform 3Y $23.50 +10.64% -22.11% +32.75
CVMp 87.88 6/16/2009 Outperform 5Y $18.03 +44.20% +16.79% +27.41
FindStocks 59.32 6/22/2009 Outperform 3W $18.26 +42.39% +18.13% +24.26
tpatrickw < 20 1/24/2008 Outperform NS $24.29 +7.04% -16.98% +24.02
DrMoreBux 97.68 10/27/2008 Outperform 3Y $17.63 +47.48% +23.52% +23.96

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackSterneAgee 83.73 8/20/2008 Outperform NS $36.72 -29.19% -13.28% -15.92
TrackFerrisBaker 72.41 2/27/2007 Outperform NS $42.02 -38.12% -20.97% -17.15
TrackTGMark 29.95 9/1/2006 Outperform 3W $39.47 -34.13% -13.39% -20.73
TrackFerrisBaker 72.41 8/14/2006 Outperform NS $35.58 +24.51% +4.23% +20.28 9/18/2006 @ $44.30

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