Guru investors have always seen the potential in serving a broad band of under-banked consumers with creative financial services and unsecured short-term loans. Here’s a close-up on two payday loan makers, both down around 30% over 12 months. DFC Global Corp. (DLLR, Financial) provides alternative financial services, and makes unsecured consumer loans over its Internet platforms, with recent quarterly revenue of more than $59.8 million for that segment of its business. QC Holdings Inc. (QCCO, Financial), the payday loan company with the highest earnings yield in the consumer finance industry, according to SmarTrend, is on a 52-week low.
QC Holdings Inc. (QCCO)
The QCCO share price is currently $2.37 or 34.9% off the 52-week high of $3.64. Its dividend yield is 8.40%.
Down 31% over 12 months, QC Holdings Inc. has a market cap of $41.2 million and is traded at a P/E of 48.40 and a P/B of 0.50.
Founded in 1984, QC Holdings Inc. has 500 branch locations in the U.S., offering a variety of financial services that include payday loans or short-term loans, check cashing, money orders and money transfers. QC Holdings has three operating segments: Financial Services, Automotive and E-Lending.
For the second quarter of 2013, the company reported net income of $341,000, down from the second quarter of 2012 at $1,728,000. QC Holdings also reported a decline in revenue by 3.6%, quarter-to-quarter, at $40.7 million. For the six months ending June 30, 2012, the company reported income from continuing operations at $7.2 million, and revenue of $86.4 million.
Guru Action: As of the second quarter of 2013, one guru holds QCCO shares and there is recent insider selling.
As of June 30, 2013, Jim Simons is the sole guru stakeholder, holding 60,200 shares, after increasing his position by 3.68%. His shares represent 0.35% of shares outstanding.
As of the second quarter, he sold 2,300 shares at an average price of $3.03 for a loss of 21.8%. Over five years of losing quarters, Jim Simons has averaged a loss of 56% on 49,200 shares bought at an average price of $5.34. He has also lost 46% on 13,700 shares sold at an average price of $4.36 per share.
Tracking share price, revenue and net income:
DFC Global Corp. (DLLR)
The DLLR share price is currently $11.62. The company does not pay a dividend.
Down 30% over 12 months, DFC Global Corp. has a market cap of $456.7 million and is traded at a P/B of 1.10.
Formed in 1990, DFC Global Corp. is a non-bank provider of alternative financial services, unsecured short term consumer loans, secured pawn loans, check cashing, gold buying, money transfers and reloadable prepaid debit cards, serving unbanked and under-banked consumers. The company has over 1,500 current retail storefront locations and multiple Internet platforms in 10 countries across Europe and North America. In addition to its retail stores, the company offers Internet-based, unsecured short-term consumer loans in the UK, Canada, Sweden, the Czech Republic, Spain and Poland, under various brand names.
The company reported financial results for the fiscal 2014 first quarter ended September 30, 2013, with revenue down from the same fiscal quarter a year ago by 5.5% at $261.6 million. Earnings per diluted share were $0.16. DFC’s unsecured consumer lending revenue was $170.2 million, also down 2.7% from the same quarter a year ago. Internet-based loans brought in revenue of $59.8 million for the quarter, also down by 19.7%, compared to the same quarter a year ago. Up 10.3% year-over-year, pawn lending brought in quarterly revenue of $21.9 million. The company’s adjusted EBITDA was reported at $48.9 million, down from $72.9 million in the same period of the last fiscal year.
Guru Action: As of the third quarter of 2013, the last guru stakeholder, Manning & Napier Advisors, sold out its position, unloading 686,030 shares at an average price of $13.68 for a loss of 15.1%.
The firm made a new buy of 686,030 shares at an average price of $14.44 for a loss of 19.5% in the second quarter of 2013.
There is no recent DLLR insider trading to report.
Tracking share price, revenue and net income:
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QC Holdings Inc. (QCCO)
The QCCO share price is currently $2.37 or 34.9% off the 52-week high of $3.64. Its dividend yield is 8.40%.
Down 31% over 12 months, QC Holdings Inc. has a market cap of $41.2 million and is traded at a P/E of 48.40 and a P/B of 0.50.
Founded in 1984, QC Holdings Inc. has 500 branch locations in the U.S., offering a variety of financial services that include payday loans or short-term loans, check cashing, money orders and money transfers. QC Holdings has three operating segments: Financial Services, Automotive and E-Lending.
For the second quarter of 2013, the company reported net income of $341,000, down from the second quarter of 2012 at $1,728,000. QC Holdings also reported a decline in revenue by 3.6%, quarter-to-quarter, at $40.7 million. For the six months ending June 30, 2012, the company reported income from continuing operations at $7.2 million, and revenue of $86.4 million.
Guru Action: As of the second quarter of 2013, one guru holds QCCO shares and there is recent insider selling.
As of June 30, 2013, Jim Simons is the sole guru stakeholder, holding 60,200 shares, after increasing his position by 3.68%. His shares represent 0.35% of shares outstanding.
As of the second quarter, he sold 2,300 shares at an average price of $3.03 for a loss of 21.8%. Over five years of losing quarters, Jim Simons has averaged a loss of 56% on 49,200 shares bought at an average price of $5.34. He has also lost 46% on 13,700 shares sold at an average price of $4.36 per share.
Tracking share price, revenue and net income:
DFC Global Corp. (DLLR)
The DLLR share price is currently $11.62. The company does not pay a dividend.
Down 30% over 12 months, DFC Global Corp. has a market cap of $456.7 million and is traded at a P/B of 1.10.
Formed in 1990, DFC Global Corp. is a non-bank provider of alternative financial services, unsecured short term consumer loans, secured pawn loans, check cashing, gold buying, money transfers and reloadable prepaid debit cards, serving unbanked and under-banked consumers. The company has over 1,500 current retail storefront locations and multiple Internet platforms in 10 countries across Europe and North America. In addition to its retail stores, the company offers Internet-based, unsecured short-term consumer loans in the UK, Canada, Sweden, the Czech Republic, Spain and Poland, under various brand names.
The company reported financial results for the fiscal 2014 first quarter ended September 30, 2013, with revenue down from the same fiscal quarter a year ago by 5.5% at $261.6 million. Earnings per diluted share were $0.16. DFC’s unsecured consumer lending revenue was $170.2 million, also down 2.7% from the same quarter a year ago. Internet-based loans brought in revenue of $59.8 million for the quarter, also down by 19.7%, compared to the same quarter a year ago. Up 10.3% year-over-year, pawn lending brought in quarterly revenue of $21.9 million. The company’s adjusted EBITDA was reported at $48.9 million, down from $72.9 million in the same period of the last fiscal year.
Guru Action: As of the third quarter of 2013, the last guru stakeholder, Manning & Napier Advisors, sold out its position, unloading 686,030 shares at an average price of $13.68 for a loss of 15.1%.
The firm made a new buy of 686,030 shares at an average price of $14.44 for a loss of 19.5% in the second quarter of 2013.
There is no recent DLLR insider trading to report.
Tracking share price, revenue and net income:
If you are not a Premium Member, we invite you for a 7-day Free Trial.
GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.
Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.
