Gain The Advantage Over Those $1 MM+ Salary Wall St. Analysts
An essential aspect of the evaluation of investment risk is taking on the roll of a Las Vegas odds maker-and not just when it comes to earnings, cash flows or revenues.
For example, in its June 30th 10-Q, filed last week, Cash America (CSH), a strong producer of Free Cash Flow, in the business of pawn lending, cash advances, and check cashing wrote:
Certain consumer advocacy groups and federal and state legislators have also asserted that laws and regulations should be tightened so as to severely limit, if not eliminate, the availability of certain short-term products to consumers, despite the significant demand for it. In particular, both the executive and legislative branches of the federal government have recently exhibited an increasing interest in debating legislation that could further regulate short-term consumer loan products. The U.S. Congress has debated, and may in the future debate, proposed legislation that could, among other things, place a cap on the effective annual percentage rate on consumer loan transactions (which could encompass both the Company’s consumer loan and pawn businesses), place a cap on the dollar amount of fees that may be charged for short-term loans, ban rollovers (payment of a fee to extend the term of a short-term loan), require the Company to offer an extended payment plan, allow for minimal origination fees for advances, limit refinancings and the rates to be charged for refinancings and require short-term lenders to be bonded.
