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

To: Madharry who wrote (78646)	12/2/2025 12:54:22 PM
From: Paul Senior	Respond to of 78753

CRMT. I've been attracted to subprime lenders and associated businesses. CRMT is a buy-here-pay-here type. I currently maintain a losing position. Margin of safety might be that stock is so far below tangible book value, that maybe just the cars they have for sale are worth more than the entire business. Otoh, cars do depreciate, so maybe not. The company's generally been profitable. I like that they can just open retail stores in small locations, and if they're then not profitable, close 'em and move on. I'm hoping earnings will stabilize back to an historical level, and the stock will recover from its lows. finance.yahoo.com

To: Madharry who wrote (78646)	12/2/2025 1:05:32 PM
From: S. maltophilia	Read Replies (1) \| Respond to of 78753

CRMT Interesting. They're borrowing @~7% sec.gov and lending at The Company originates installment sale contracts from the sale of used vehicles at its dealerships. These installment sale contracts carry a weighted average interest rate of approximately 17.6% using the simple effective interest method including any deferred fees. The Company originates contracts at interest rates ranging from 12.99% up to 23.0% based on the credit score of the customer and applicable state usury limits. Contract origination costs are not significant. The installment sale contracts are structured to have 10-K p.57 on sales averaging Selling Basic Transportation. The Company focuses on selling basic and affordable transportation to its customers. The Company’s average retail sales price was $19,398 per unit [!! with 100,000 miles] in fiscal 2025, compared to $19,113 in fiscal 2024. Used vehicle pricing continued to increase due to the high demand and tight supply of used vehicles. In general, the demand for quality, used vehicles has increased due to a shortage of new vehicles leading to inventory constraints in both the new and used vehicle markets. Management expects.. 10-K p7 While putting up with Over the last five fiscal years, the Company’s annual provision for credit losses as a percentage of sales has ranged from a low of 19.31% in fiscal 2021 to a high of 36.48% in fiscal 2024, with an average of 28.14% over the period. During fiscal 2025, credit losses improved to 32.68% due to the continued favorable performance in contracts originated under the Company's enhanced underwriting system. 10-K p.6 I don't expect the last item to get better anytime soon. Just bought a little, with a tight sell stop. Hopefully they've cleaned up their accounting act and the assets are real.