Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (53739)	4/12/2014 3:24:53 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78717

Re CRMT - gannon and hoang have a detailed post about this subprime used car dealer/finance company hybrid: gannonandhoangoninvesting.com Looks pretty good got to me, but a ~40% repossession rate is really scrapping the bottom of the barrel, imo. The play on ALLY is ROA improvement. I think this is a restructure story where a lot of the heavy lifting has been done already. With financials, the balance sheet get's fixed first and the income statement will follow, if the business model is decent. I think that this is the case with ALLY and earnings should shoot up, the CFO said, made the case on Bloomberg recently. A precedent is CIT, which also did not look that profitable coming out of bankruptcy but looks pretty good now. Third Point is in it too, and I think they Re pretty good investors.

To: Paul Senior who wrote (53739)	4/15/2014 9:15:51 AM
From: robert b furman	Respond to of 78717

Hi paul, Buy Here Pay Here have huge margins. Those who pull the repo tag quickly do very well. More often than not sell paper to a financial arm - to fuel further growth/sales. As the economy gets bad the number of people hurt by unemployment and or just bad credit always grow. When the economy picks up the sub prime buyers seek to attract the buy here pay here customer. A loyal buy here pay here customer base is like money in the bank - at very high margins. I used to belong to a buy here pay here 20 group. Some big players will have 4 million yielding 18-25 percent. The losses are huge with skips and totals with no insurance - 30 - 35 % reserves on front end gross. Bob