Monday, March 16, 2009

Bookkeeping: Closing out EZCORP (EZPW) Position

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I still do love the pawn shop thesis; however the political environment is very poor for the cash advance side of the business for EZCORP (EZPW) and other competitors. The market is hard enough when all I have to deal are normal fundmanetals; I am willing to give up "upside" in this specific stock (which is DIRT cheap) and concentrate on stories with less headwinds.

I'm selling the last 1.4% stake today in the $11.40s (near the 20 day moving average); I assume there can be upside to $12.75 which is the 50 day moving average. We're taking a 4% loss on this last batch of shares. I will say the stock has formed a nice double bottom in the mid $9s so this could be premature ejection. Again I am willing to give that up to concentrate elsewhere - this does not mean EZPW is done jumping up. The company has done nothing but execute fundamentally.

No position


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