World Acceptance Corp. (NASDAQ:WRLD)
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.
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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 morning. Wonder where else the damage control squad is posting?
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Just read the Citron Research report, and really, don't see any news there.... And the amount of calls that they make, one wonders why they're not charging a subscription, let alone advising a fund with all of their expertise?
Anyways, back to WRLD. Like it or not, they provide a needed service for people. You may feel bad about some stories you hear, but in the end, people will need short term loans to fill in the bumps in the road. And especially if the banks deem them uncreditworthy, they'll need to go elsehwere. And again, not to draw a parallel, but without a World Finance, who's charging interest commenserate with the risk they're taking on dealing with these people (unlike, say.... Citi, Wachovia and all the others who destroyed our economy), they'll (the clients) be forced into the arms of much more unsavory types.
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follow the leaders
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Citron Research just released a report about their preditory lending practices and coverup of lawsuits. If true, this is going to $0
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Citron genuinely believes this company is a candidate for a complete zero.
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Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing 4/27 picks.
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Some of the most stable earnings I have seen in awhile. The company also frequently repurchases its stock.
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Holding its own.
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Great business for current market conditions. High interest loans to those who can't get credit from other institutions.
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1. good fundamentals
2. dropped from $48 to $30 in 2007 due to perception that all "financials" will suffer from subprime housing loan problems, but WRLD is not directly linked.
3. drop to $25 from $30 in Jan 08 likely due to lawmaker in So Carolina threatening to outlaw "payday" lenders. Probably oversold due to that threat.
4. smart insider has been buying large amounts at market prices for several months at prices below $35
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