Conn's, Inc. (NASDAQ: CONN) is
a specialty retailer of home appliances and consumer electronics. Offerings include refrigerators, freezers, washers, dryers, dishwashers, digital cameras, DVD players, video game equipment, televisions and home theater products. The company also carries home office equipment, lawn and garden equipment, mattresses, and furniture. Conn's operates through a website and about 70 stores in Texas, Oklahoma, and Louisiana. Best Buy (NYSE: BBY) and Wal-Mart (NYSE: WMT) are competitors.
The firm pleased investors last week, when it reported solid Q1 results and issued in-line guidance for FY09 earnings. The news kept CONN shares cycling through a positive 11-week trading channel.
The price
is currently consolidating at the base of that channel, where oversold CCI, Stochastic and MACD technical parameters suggest the potential for a rise back toward the top.
Brokers recommend the issue with two "strong buys", one "buy" and four "holds". Analysts see a 13% average annual growth rate, through the next five years. The CONN P/E ratio (9.77), PEG ratio (0.77), Price to Sales ratio (0.45), Price to Book ratio (1.20), Price to Cash Flow ratio (7.06), Return on Assets (10.27%) and Return on Investment (13.26%) compare favorably with industry, sector and S&P 500 averages. Over the past 52 weeks, the stock has traded between $11.50 and $32.19. A stop-loss of $14.25 looks good here. Note that Nasdaq May short interest data showed that about 55% of the stock's float was sold short, a contrarian indicator of the potential for upside.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
6-20-2008 @ 8:20AM
anna tan said...
Buyers Beware! I would like to make consumers aware of Conn's underhanded way of getting their money. I have made a purchase with them on 6/11/2007 for $1655 (a set of washer/dryer). I got the 12 month same as cash term, and I had made payments timely and had called to payoff my balance. Their system didn't take my payment on 6/6/2008, and as a result the payment was not posted to their system. The final payment was due on 6/11/2008, and upon realizing that it didn't post, I called back today (6/17/2008). They are charging me 3 years of interests because now they considered my payment 6 days late. I explained their system error, and offered to pay off my account in full. They said that I am bound by the terms of the contract even though it is their system error. In reviewing my contract, I also notice they added another $300 for insurance premiums stating that they required it, or I can opt out if I show proof of my home insurance, even though the option was never explained to me. I know I should have reviewed the contract thoroughly but I still feel that they are out to get unsuspicious customers. Now I am stuck with a payoff balance of $2622.24, even though the purchase I made was for $1655.51.
8-15-2008 @ 10:18AM
GWB said...
I agree, the ads say parts always in stock and fast repairs on warranty items.
On 7/21/08, my wife took our sons lap top battery (under extended warranty) in because it would not take a full charge. The clerk stated they had none in stock even though the ads say parts are always instock. It would take 4-5 days to get a replacement.
After many calls the clerk said they were looking for a lap top. I have spent an average of 1 hr./day calling Beaumont, the San Antonio store and the repair department without any success.
I have only had 1 RETUNED call stating it would take 4-5 DAYS. That was over a week ago. My son has been tied to the wall using the cahrger/power supply. All totaled I have spent approx 6 hrs just this last week trying to get an answer to my phone calls.
This is not the first time. We purchased an item serveral years ago. We were then bombarded by sales calls both at home and at work trying to get us to buy this or that.
So all I can say is BUYER BEWARE. I will not trade with this compoany again. Best Buy is My Choice from now on.
Also I have filed a complaint with the BBB. They have 1166 complaints against Conn's in the last 36 months most relating to the customer service and charging extras not wanted.
So Again BUYER BEWARE!!!!!!!!!!!!!!!!!!!!!!!!!!!11