As I warned the last time I wrote on First Cash Financial Services (FCFS),
I thought the stock was expensive and the risk/reward balance wasn't so
favorable to new investors. Although I didn't expect First Cash to get
hit as hard as it did in the fourth quarter, disappointing results (and
an even more disappointed market) have taken a sizable chunk of the
excess enthusiasm out of these shares. First Cash still isn't what you
might call a screaming bargain, but I believe its one of the best-run
companies in consumer finance and I believe the company's long runway of
growth in Mexico (and other Latin American countries) and consolidation
opportunities in the U.S. make it a stock to consider on this pullback.
Read more here:
Under Fire On All Sides, First Cash Financial Slides Back Toward Value
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