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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (40769)	12/22/2010 9:26:33 PM
From: Futurevalueus	Respond to of 78766

I like CONN's (symbol CONN) a small (76 locations) competitor in retailing electronics. It's selling at .33x book. Nobody likes them because they finance 2/3rds of what they sell and have a huge underperforming loan portfolio. Yuck! But, they just got their banks to issue new debt extending maturities out,and their long term largest shareholder, Stephens Group, just increased share ownership by excercising rights and fully oversubscribing (I entered by buying rights, excercising and oversubscribing). Management, while likely not great, has displayed the ability to focus on desired metrics and bring them in on target. Their underwriting got better beginning a year ago and these average $1350 loans roll off pretty quickly (6 to 36 month financing). I think it's a double in time with pretty limited downside.