Since you mentioned QC Holdings, you might want to take a look at DLLR. It is a little different company from the others in the sector. First of all, on 38% of their business is in the US. 57% originates from Canada and the UK. Only four stores are located in Texas. They have a dominant share of the business in the UK and Canada. In the UK they are six to seven times larger than their nearest competitor.
The company has averaged 16% EBIDAT growth the last four years. The company recently came public. In their latest quarter, if you add back the one time charges for coming public, they would have earned 42 cents this quarter. The company recently raised their EBIDAT estimates for this year to 75 to 76 million. Their corporate tax rate is roughly 42 percent.
Furthermore, they have an interesting acquisition with WE THE PEOPLE, a document preparation company which specializes in documents for bancruptcies, divorces, wills, living wills and incorporating. This is how I originally got interested n the company as WE THE PEOPLE started in Santa Barbara, where I live, and has grown rapidly. Currently, there are 172 stores, with fifty stores in CA and 30 stores in NY. They are currently located in 32 states. The company thinks the concept can be expanded to Canada and the UK. This is a mini-HR Block type business that could benefit those who don't think they need the services of an attorney.
The company states that the current regulatory questions only puts 8 to 10 million at risk. So I think this company offers an interesting risk/reward ratio at its current price of 9.75. |
