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

To: A1111 who wrote (71593)	11/18/2022 2:12:22 PM
From: Paul Senior	Respond to of 78669

CRMT. Company has been profitable every year in past 13 with revenue increases each year. Stock trades below tangible book value. P/e about 6+. Ok roe (imo). Nice niche business (again imo). Maybe I should be worried about its debt, but I'm not. Sub-prime customer base will always ensure payment defaults. Cars can be repossessed and loaned back out. With recession company should see more demand for vehicles in its buy-here/pay-here model. Possible that with Covid and shortage of used cars and correspondingly high price for used cars, of which prices are now falling as supply meets demand, that there will be some short-term disruption to CRMT revenue, defaults, earnings. I believe that their business should be okay in a more normal business model, even as Fed raises interest rates. Stock is very volatile. If debt situation makes this stock avoidable to you/others, high volatility of the stock also may be off-putting.