Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, home appliances and consumer electronics retailer Conn's
With that in mind, let's take a closer look at Conn's and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Beaumont, Texas (1890)|
|Market Cap||$522.8 million|
|Industry||Computer and electronics retail|
|Trailing-12-Month Revenue||$801.2 million|
|Management||CEO Theodore Wright (since December 2011)
CFO Brian Taylor (since April 2012)
|Return on Equity (average, past 3 years)||(0.1%)|
|Cash/Debt||$6.7 million / $298.1 million|
Sears, Roebuck & Co.
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 13% of the 335 members who have rated Conn's believe the stock will underperform the S&P 500 going forward.
This company relies on folks with crappy credit to come in and purchase appliances / mattresses on credit. This type of consumer loan is called PMSI (purchase money security interest) -- and it comes with much higher risks and default rates. ... Most of these terms have a hidden cost to consumers, which many do not fully understand. Conn's is getting themselves back into the same situation they were in during late 2008 / early 2009. ... You can see their cash from operations balances beginning to decline (quarter over quarter). I would be careful with this one -- if the US economy continues to falter, this one will fall fast and hard.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Best Buy. Motley Fool newsletter services have recommended creating a bull call spread position in Wal-Mart. Try any of our Foolish newsletter services free for 30 days.