FirstCash (FCFS) shares have done well since my last update
in August, with the shares rising about 14% as the company continues to
execute very well with its Mexican pawn stores. Looking not all that
far ahead, the company should start reaping the benefits of integrating
its Cash America stores and converting them to FirstCash’s more
sophisticated and efficient IT system as well as expansion into a new
Latin American market (Colombia).
Valuation is more
of a challenge for me now. I’m very willing to acknowledge that there’s
no end-all/be-all approach to valuation, and the market is often happy
to overpay for growth, but the risk/reward ratio now is more in keeping
with a good hold than a “must buy.”
Continue here for the full article:
FirstCash Looking Forward To Value-Creating Opportunities
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