Why World Acceptance, Carriage Services, and Gogo Tumbled Today

Stocks fell sharply across the board on rising geopolitical tensions that outweighed positive news on the domestic economic front. Find out more about what made these stocks fall so much.

Mar 13, 2014 at 8:30PM
Longview

On Thursday, the stock market finally succumbed to some of the nagging problems that have plagued it over the past couple of weeks, as investors pointed to the situation between Ukraine and Russia as well as nervousness about China's economy as their justification for a broad-based sell-off. Major stock market benchmarks posted losses of roughly 1% to 1.5%, but World Acceptance (NASDAQ:WRLD), Carriage Services (NYSE:CSV), and Gogo (NASDAQ:GOGO) suffered much more dramatic declines today due to company-specific issues.

World Acceptance dropped almost 20% after the provider of small consumer loans said that the Consumer Financial Protection Bureau was investigating the company's business practices. World Acceptance received a civil subpoena from the newly created regulatory agency requesting documents related to the company's loans and other business. Payday lender Cash America International (NYSE:CSH) also fell on the news, with that company already having paid a $19 million settlement last year in what appears to be a similar investigation to what's going on with World Acceptance now. The move shows that the CFPB intends to move aggressively to curb what many see as questionable business models among consumer lenders.

Carriage Services fell 9% as the death-services provider announced that it would raise $120 million in capital through a private offering of convertible subordinated notes. The company said it would use the proceeds to repurchase or redeem existing convertible debt, but investors are clearly worried that the issuance of new debt could only compound the potential for long-term dilution. With the notes not maturing until 2021 and with holders allowed to convert to shares until late 2020, the debt could put a ceiling over Carriage Services' upside potential for years to come.

Gogo declined about 8% despite releasing a quarterly report that included higher revenue and a narrower loss than expected. The provider of in-flight Internet services initially climbed after the report, but investors might have had second thoughts about Gogo's revenue guidance for the 2014 fiscal year. Given Gogo's potential as a leader in a high-growth industry, investors have high expectations for the stock, and even solid results won't necessarily be enough to keep Gogo's share price from falling in the future.

Do you own this stock?
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers