Tuesday, January 12, 2016

Seeking Alpha: First Cash Financial Makes Its Move

As I have written on many occasions, one of the larger unmet expectations among First Cash Financial Services' (NASDAQ:FCFS) investors and analysts has been the lack of a big acquisition in Latin America to take the company beyond its very successful operations in Mexico. While management has now in fact made a big acquisition outside of the U.S., it is not exactly the strong entry into a large new market that some investors wanted.

Acquiring more stores in Mexico should round out the company's business from a geographical perspective and significantly accelerate the achievement of the company's desired footprint. The incremental expansion into Guatemala and El Salvador is nice, but not really game-changing. The paucity of detail that First Cash provides makes modeling challenging, but I believe this deal does improve the fair value by about 4% to 10% relative to my prior expectations.

Read more here:
First Cash Financial Makes Its Move

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