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Cash Store Financial Services Inc CSFS



NYSE:CSFS - Post by User

Post by insightfultruthon Apr 19, 2013 1:39pm
318 Views
Post# 21275691

Take Cover

Take Cover

Gents - I believe this may be the beginning of the end.  There are so many variables here, and very few lead to recovery at this point.  I think it will be a downwards spiral from here, with significant consumer class action being the next shoe to drop.  Everyone will pile on and its sure to get uglier.

If you have not sold by now, at this point it may not be worth it anymore.  An outside buyer is now a longshot considering the issues around their biggest asset (which would be their debt).  A major restructuring is the only way one can envision this turning around now.  Consolidation of their branch network, downsizing staff by 30-40%  to build a much leaner organization.  They can then relaunch with a new operating model that will actually compete in the marketplace today.

They real questions in the upcoming months will be if egos can be put aside, and if management is willing to stare into reality and make the decisions necessary to keep this company going.  Even if they do, the road will be long given the pending legal issues that are going to fall like a hammer on the Cash Store.

 

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