The stock got a big boost from an analyst upgrade at C.L. King that has an $11.25 target price and a FY2017 (September FY) earnings estimate of 70 cents per share.
If the 70 cent per share earnings estiamte is close to accurate, this name, at $10 today, still has upside of 40%+ plus, as peer companies (FCFS is acquiring CSH) are trading in excess of 20x trailing earnings. That would put a potential EZPW price next Spring into the $14-$15 range.
Caveats and catalysts include closing the sale of its Mexican payday lending business (does it get any riskier than that?) and using those funds for accretive M&A activity.
In the main accounts I was really close to pulling the trigger but my wife said she was willing to see the earnings report
so I didn't do anything.
I don't think I have ever seen a company announce that they discovered an accounting error and seen the stock go up and I've seen a lot over the years.
Nice handle, btw.