Opinion on  First Cash Financial Services Inc. (FCFS)     Sector: Services  >  Industry: Retail (Specialty)
Bullish on FCFS ...

About:

First Cash Financial Services, Inc. is engaged in the operation of pawn stores that lend money on the collateral of pledged personal property and retail previously owned merchandise acquired through pawn forfeitures and purchases directly from the general public. In addition to making short-term secured pawns, many of the Company's pawn stores offer cash advances and credit services. The Company also operates cash advance stores that provide cash advances, credit services, check cashing, and other related financial services. As of December 31, 2006, the Company owned and operated 252 pawn stores, 145 cash advance stores and 10 buy-here/pay-here automotive dealerships. The Company is also a 50% owner of Cash & Go, Ltd., a Texas limited partnership that owns and operates 40 financial services kiosks inside convenience stores. On August 25, 2006, the Company acquired Guaranteed Auto Finance, Inc. and SHAC, Inc.

MSN Strategy Lab commentary by Value Shopper - Nancy Zambell

First Cash Financial ( FCFS , news , msgs ) operates 252 pawnshops that provide consumer loans; 145 cash-advance stores and 40 cash-advance kiosks; and used-car dealerships.

The company is going strong, with first-quarter profits climbing 35%, to 31 cents per share, while sales soared 62%, to $90.2 million.

First Cash's analysts are forecasting sales of $89.8 million and earnings of 26 cents for the quarter ending in June. It has a market cap of $731 million, with 32.19 million shares outstanding. It has $15.53 million in cash.

I recommend that you purchase 400 shares of FCFS at a price no greater than $23.75. My 12- to 24-month price target is $30, about a 32% increase from today’s level.