Conn’s originations are very high

Conn’s originations seem to exceed the amount of money lent to its customers.

In FY2014, Conn’s originations were $1,075M.
It provided $757.2M in in-house financing, including down payments and excluding insurance.
The ratio between originations versus in-house financing was ~142%.


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(CONN) Conn’s lending practices

(This is not a short writeup where I say what I truly think.  I don’t like doing such writeups because I don’t want to get sued.)

In a nutshell, I think that it is worth taking a deep dive into Conn’s lending practices.  In my opinion, the 10-Ks and 10-Qs seem to ignore some important ‘nuances’ of Conn’s lending practices.

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An investor’s guide to search engine optimization (SEO)

Search engine optimization is about getting a website to rank higher in search engines.  The goal is to increase web traffic without having to pay for ads.

This primer on search engine optimization is relevant to these stocks:

  • RetailMeNot (SALE)
  • Demand Media (DMD)
  • Search engines (GOOG, Yahoo Japan, IACI/, MSFT/Bing)
  • Phone book companies (YLO.TO, DXM)
  • Somewhat relevant to online e-commerce companies (AMZN)

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SCTY and solar subsidies

There are subsidies specific to residential solar that aren’t available to other forms of solar.  Essentially, homes without solar subsidize the ones with solar by paying higher electricity rates.  I don’t think that this is sustainable in the long run.  For there to be more residential solar, electricity rates will have to go higher and higher.  (Ironically this improves the economics of subsidized residential solar.)  At some point, I think that voters will ask for lower electricity bills.  Eventually, politicians “ought” to reduce residential solar subsidies.

(The analysis in this post is superficial.  I apologize in advance.)

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