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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (44014)2/17/2012 3:52:29 PM
From: Paul Senior  Read Replies (1) of 78730
 
Auto loan company NICK. Stock seems to be lagging other auto loan companies that I am following. Meanwhile used auto sales seem to be strong as apparently are new car sales now. Each auto loan company that I am following has a different business model from the others. One is a buy-here/pay-here (I have no shares. This model being investigated by state officials because of some such companies' business practices); one company partners (shares loan profits) with its dealers; and there's NICK which basically has small retail shops in southeast & midwest US.

I sold most of my shares as stock has moved up (now at 12-mo) high. P/e is about 8 now. ROE is 17%. Company has been profitable right through the '08-'09 auto manufacturer's rough patch. NICK recently (Sept) instituted a quarterly dividend. One guy (Mr. Vosotas) is the founder and controlling stockholder.

I'm guessing and speculating that given the apparent strength now of the auto market and because NICK with its good metrics (low p/e decent roe, as I view it), NICK shouldn't be lagging the other loan company stocks that have had better moves. Or seem to me to have had better moves. So the stock looks attractive to me.

I'll call my exit of shares a mistake, and at NICK's current high price, I'll add back some shares.

Biggest negative I see now would be the low trading volume in the stock and the stock's volatility. So there might be a better (lower) entry point coming.

finance.yahoo.com
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