Revisiting EZCORP, Timing is Everything

Back on June 12th the Masters wrote about EZCORP, Inc. (NASDAQ:EZPW) and told you to be patient after watching shares fall 15% that day.  EZPW shares hit a bottom on June 15th and are now in the high $10 range but have yet to recover after disappointing the Street for cutting their forward guidance.  So, now what, how long to you have to wait for EZPW shares to trend up?

We get to hear from EZCorp on July 23rd, that is when the company will deliver its Q3 2009 results and until that time, you may be stuck waiting around. 

THREE STRIKES, YOU'RE OUT 

Back on June 12th, EZCORP cut its fiscal third-quarter forecast to earnings of 29 cents to 31 cents a share, from its April guidance of 34 cents. A year earlier, EZCorp earned 25 cents.  But then it got worse.

EZCorp also cut its fiscal fourth-quarter outlook to earnings of 41 cents to 43 cents a share from 46 cents to 48 cents.  Strike 2.

Fiscal-year earnings are now seen at $1.40 to $1.44, down from $1.50 to $1.52. A year earlier, earnings were $1.21.  Strike 3, you get the point.

To remind our readers, EZCORP is the largest pawn operator in the United States by market capitalization they operate over 670 storefronts in 13 states and Mexico under the EZPAWN, EZMONEY Loan Services, EZMONEY Payday Loans and EZ Loan Services brand names.   We told you to wait until EZPW shares hit the $9 level, but that may not come in time for the next earnings call, so if you want to get in before the call, you may have to pull the trigger soon.

STUCK IN LIMBO 

Nobody is touching EZCORP, the analysts are staying clear, this stock appears to be stuck until further notice.  Sure things could get worse for EZCORP and until we hear anything from them on the next call, its a gamble, but at some point it could be worth a few bucks to test on the July 23rd call.  Happy Safe Investing.