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Daily TopStock Pick: EZCORP Inc - 7/23/2010

by DB Moenning

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Every trading day, we search our database for a brand new TopStock pick that, in our humble opinion, is in solid technical condition and perhaps, ready to move up.

Our base level investment philosophy is based on the concept of "own the best and ignore the rest." Thus, we focus our attention solely on the TopStocks of the market -- the top ranked stocks in the strongest industry groups.

How Do We Find the"TopStocks?"

A question we are constantly asked is: How do we find these TopStocks? In short, we follow a disciplined three-step process.

Step 1: Identity the Top Sectors and Industry Groups
We first determine the market?s leadership by identifying the top performing sectors and industry groups. From 10 sectors and more than 100 Industry Groups, our proprietary ranking systems (which has been designed in conjunction with the nation's leading independent research firm) identifies the top 5 sectors and the top 20 groups based on momentum, industry strength, and indicators that are specific to the industry being ranked.

Step 2: Isolate the Highest Rated Companies
From more than 2400 stocks, the system identifies the top 5% in terms of earnings strength, earnings momentum, company performance, and relative strength.

Step 3: Select the Strongest Stocks in the Top Industry Groups
We then merge the two rankings and select the top ranked companies that are in the top Industry Groups. This keeps us focused on the best performing stocks in the leading sectors of the market.

And then every weekend, we rerun the TopStock ratings and start all over again!

The TopStock Pick of the Day

The TopStock Pick listed below has met all of our fundamental criteria and currently displays a solid technical "set up" for a buy. The stocks highlighted in our daily Stock Pick reports are definitely on our radar, and may even be in some of our portfolios (see disclosure for details).



Stock


Symbol


Industry

TopStock
Rating
Annualized
Profit
Projection
S.T.
Stop
Loss
EZCORP Inc EZPW Consumer Finance 10.0 51.4% $19.27
Company Profile:
EZCORP, Inc. lends or provides credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. The Company operates pawn stores in the United States under the EZPAWN and Value Pawn brands, and in Mexico under the EMPENO FACIL and EMPENE SU ORO brands. It also operates short-term consumer loan stores in the United States principally under the EZMONEY brand and in Canada under the CASHMAX brand. The Company also owns approximately 30% interest in Albemarle and Bond Holdings PLC, with 115 stores, and Cash Converters International Limited, which franchises and operates approximately 500 locations worldwide. The Company operates in three segments: U.S. Pawn Operations, Empeno Facil and EZMONEY Operations.

Stock Rating:
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Annualized Profit Projections:
The projected annualized return is based on the historical relationship of the stock's TSP's technical model

Disclosure:
At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  EZCORP - Last 3 Months -
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  EZCORP - Last 12 Months
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  EZCORP - Last 5 Years
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