Chopra says: "If you’re really spiritual, then you should be totally independent of the good and the bad opinions of the world…you should have faith in yourself."
posted from Bloggeroid
Wednesday, December 31, 2014
Chopra says:
Chopra says: "If you’re really spiritual, then you should be totally independent of the good and the bad opinions of the world…you should have faith in yourself."
Monday, December 22, 2014
Dividend Achievers Series: Aaron's
Dividend Achievers Series: Aaron's
Dec. 23, 2014 1:05 AM ET | by Sure Dividend | about: aan | includes: big, mfrm, rcii
Summary
Aaron's is one of the few stocks that tends to rise in recessions.
The company is betting big on virtual leasing.
Will Aaron's be able to last through the headwinds affecting the leasing industry?
Aaron's (NYSE:AAN) is a consumer goods and electronics sale and lease company. Aaron's is the largest consumer goods and electronic leasing company in the US with a market cap of $2 billion; slightly larger than rival Rent-A-Center (RCII), which has a market cap of $1.8 billion. Aaron's is undergoing a transition with the recent acquisition of online consumer products leaser Progressive Financial.
Aaron's has not reduced its dividend payments since 1994. The company currently has a dividend yield of just 0.3%. Aaron's is a Dividend Achiever, as it has increased its dividend payments for 10 or more consecutive years. While Aaron's is a Dividend Achiever, its negligible yield makes it an unsuitable candidate for investors seeking current income.
Business Overview
Aaron's operates in 3 segments: Sales & Lease Ownership, Home Smart, and Progressive. A revenue breakdown for the company's most recent quarter by segment is shown below to illustrate the relative importance of each segment to Aaron's:
Sales & Lease Ownership: 71% of revenue
Home Smart: 2% of revenue
Progressive: 27% of revenue
The Sales & Lease segment is Aaron's largest by far. The segment contains both the company's store operated and franchised Aaron's stores. In total, the company owns or franchises 2,017 Aaron's stores. The stores generate revenue by selling or leasing (with monthly terms) consumer home goods and electronics.
The Home Smart segment was responsible for just 2% of Aaron's revenue in the third quarter of 2014. The segment consists of 82 company operated stores and 2 franchised locations. The segment differs from the Sales & Lease segment in that it focuses on weekly leases as opposed to monthly leases.
The Progressive segment generated 27% of sales for Aaron's in its most recent quarter. The segment consists of the recently acquired Progressive Financial company operations. The Progressive segment partners with existing retailers to provide financing for consumer goods purchases.
Competitive Advantage & Growth Prospects
Aaron's is really two businesses: a consumer household and electronics goods leasing company with about 2,100 locations, and an online financing company that partners with other retailers to offer leasing arrangements for consumer goods.
The company's brick and mortar locations are struggling. The company faces fierce competition from competitors including Rent-A-Center, which owns about 3,000 stores (nearly 50% more than Aaron's). The company saw comparable store sales decline 2.5% in its most recent quarter for company owned stores. For comparison, Rent-A-Center saw comparable store sales in the US decline 3.5% in its most recent quarter.
The consumer goods leasing business is experiencing headwinds as the US economy continues to strengthen. As the economy improves, consumers tend to have more cash and credit, with less need to rent their furniture and consumer electronics. Positive macroeconomic news for the US is negative news for Aaron's.
On the plus side, the company tends to do well during recessions, as consumers often find themselves in the position to lease their furniture and consumer electronics or do without. Aaron's saw its EPS rise nearly 50% from 2007 to 2010, during the Great Recession. Not only did the company's operations grow during the Great Recession, but Aaron's stock price rose as well. The image below shows Aaron's performance from the beginning of 2008 to the end of 2009 versus the S&P 500.
(click to enlarge)
Source: Google Finance
Aaron's Progressive Financial acquisition has positioned it well for future growth. Progressive Financial is experiencing rapid growth despite headwinds to the overall leasing industry. The Progressive segment currently partners with well-known retailers including: Mattress Firm (NASDAQ:MFRM), Art Van Furniture, Big Lots (NYSE:BIG), and Sleepy's. The company's management believes the potential market size for virtual leasing is approximately $24 billion, as the image below shows.
Source: Aaron's Investor Relations
Progressive Financial has significantly more partner locations than its smaller peers in the virtual lending category. The company currently partners with about 15,000 locations. Its nearest competitor, Why Not Lease It, partners with about 5,700 locations. Aaron's management expects blistering revenue growth of over 40% for its Progressive segment next year as it partners with new locations.
Aaron's acquisition of Progressive Financial will drive growth going forward. If traditional leasing sales are flat, the company will still see double-digit revenue growth from its Progressive segment alone. Aaron's carries about $560 million in debt and is expecting about $250 million in EBITDA for its full fiscal year 2014 for a debt to EBITDA ratio of 2.24. The company's relatively conservative financing gives its progressive segment further strength and lending experience.
Valuation
The Progressive division is growing rapidly, but had a pre-tax profit margin of less than 1% for the third quarter of 2014. For the Progressive divisions growth to be valuable, it needs to demonstrate an ability to add substantially to the bottom line. The virtual leasing industry has low barriers to entry (as does the leasing industry in general), and is very competitive as a result. It will be difficult for Progressive to expand margins in this competitive environment.
Aaron's has a forward P/E ratio of just 14, making it a solid value for long-term investors. The company does have significant growth prospects ahead. The leasing industry is currently experiencing a downturn do to the improving economy. As a result, Aaron's stock is up just 6.3% this year, while the market is up 15% over the same time period.
Final Thoughts
Aaron's has an extremely low dividend yield. The company is experiencing rapid growth in its Progressive division, but this has yet to translate into profits. The company is also currently experiencing negative comparable store sales do to weakness in the leasing industry. On the plus side, Aaron's stock appears cheap at this time which could attract value investors.
Aaron's does not qualify for investment using The 8 Rules of Dividend Investing because it does not have a long enough dividend history. Nevertheless, the company makes an interesting choice for investors looking to hedge against recessions. Aaron's stock and underlying business has historically done well during recessions as leasing becomes more popular when the economy is in decline. The stock appears cheap at this time as well; investors could see gains from valuation multiple expansion.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.
More on AAN:
Aaron's, Inc: Rent-To-Own Leader May Be Underestimating Bad Debt Expense
AAN • Yesterday, 12:30 PM • Celan Bryant
Aaron's: Opportunity To Dominate Both Traditional And Virtual Rent-To-Own Markets
AAN • Sun, Dec. 14, 1:38 PM • Mark Lin
Aaron's Vs. Rent-A-Center: Whom To Own In Rent-To-Own
AAN • Mon, Dec. 8, 4:47 AM • Michael Boyd
More AAN »
Dec. 23, 2014 1:05 AM ET | by Sure Dividend | about: aan | includes: big, mfrm, rcii
Summary
Aaron's is one of the few stocks that tends to rise in recessions.
The company is betting big on virtual leasing.
Will Aaron's be able to last through the headwinds affecting the leasing industry?
Aaron's (NYSE:AAN) is a consumer goods and electronics sale and lease company. Aaron's is the largest consumer goods and electronic leasing company in the US with a market cap of $2 billion; slightly larger than rival Rent-A-Center (RCII), which has a market cap of $1.8 billion. Aaron's is undergoing a transition with the recent acquisition of online consumer products leaser Progressive Financial.
Aaron's has not reduced its dividend payments since 1994. The company currently has a dividend yield of just 0.3%. Aaron's is a Dividend Achiever, as it has increased its dividend payments for 10 or more consecutive years. While Aaron's is a Dividend Achiever, its negligible yield makes it an unsuitable candidate for investors seeking current income.
Business Overview
Aaron's operates in 3 segments: Sales & Lease Ownership, Home Smart, and Progressive. A revenue breakdown for the company's most recent quarter by segment is shown below to illustrate the relative importance of each segment to Aaron's:
Sales & Lease Ownership: 71% of revenue
Home Smart: 2% of revenue
Progressive: 27% of revenue
The Sales & Lease segment is Aaron's largest by far. The segment contains both the company's store operated and franchised Aaron's stores. In total, the company owns or franchises 2,017 Aaron's stores. The stores generate revenue by selling or leasing (with monthly terms) consumer home goods and electronics.
The Home Smart segment was responsible for just 2% of Aaron's revenue in the third quarter of 2014. The segment consists of 82 company operated stores and 2 franchised locations. The segment differs from the Sales & Lease segment in that it focuses on weekly leases as opposed to monthly leases.
The Progressive segment generated 27% of sales for Aaron's in its most recent quarter. The segment consists of the recently acquired Progressive Financial company operations. The Progressive segment partners with existing retailers to provide financing for consumer goods purchases.
Competitive Advantage & Growth Prospects
Aaron's is really two businesses: a consumer household and electronics goods leasing company with about 2,100 locations, and an online financing company that partners with other retailers to offer leasing arrangements for consumer goods.
The company's brick and mortar locations are struggling. The company faces fierce competition from competitors including Rent-A-Center, which owns about 3,000 stores (nearly 50% more than Aaron's). The company saw comparable store sales decline 2.5% in its most recent quarter for company owned stores. For comparison, Rent-A-Center saw comparable store sales in the US decline 3.5% in its most recent quarter.
The consumer goods leasing business is experiencing headwinds as the US economy continues to strengthen. As the economy improves, consumers tend to have more cash and credit, with less need to rent their furniture and consumer electronics. Positive macroeconomic news for the US is negative news for Aaron's.
On the plus side, the company tends to do well during recessions, as consumers often find themselves in the position to lease their furniture and consumer electronics or do without. Aaron's saw its EPS rise nearly 50% from 2007 to 2010, during the Great Recession. Not only did the company's operations grow during the Great Recession, but Aaron's stock price rose as well. The image below shows Aaron's performance from the beginning of 2008 to the end of 2009 versus the S&P 500.
(click to enlarge)
Source: Google Finance
Aaron's Progressive Financial acquisition has positioned it well for future growth. Progressive Financial is experiencing rapid growth despite headwinds to the overall leasing industry. The Progressive segment currently partners with well-known retailers including: Mattress Firm (NASDAQ:MFRM), Art Van Furniture, Big Lots (NYSE:BIG), and Sleepy's. The company's management believes the potential market size for virtual leasing is approximately $24 billion, as the image below shows.
Source: Aaron's Investor Relations
Progressive Financial has significantly more partner locations than its smaller peers in the virtual lending category. The company currently partners with about 15,000 locations. Its nearest competitor, Why Not Lease It, partners with about 5,700 locations. Aaron's management expects blistering revenue growth of over 40% for its Progressive segment next year as it partners with new locations.
Aaron's acquisition of Progressive Financial will drive growth going forward. If traditional leasing sales are flat, the company will still see double-digit revenue growth from its Progressive segment alone. Aaron's carries about $560 million in debt and is expecting about $250 million in EBITDA for its full fiscal year 2014 for a debt to EBITDA ratio of 2.24. The company's relatively conservative financing gives its progressive segment further strength and lending experience.
Valuation
The Progressive division is growing rapidly, but had a pre-tax profit margin of less than 1% for the third quarter of 2014. For the Progressive divisions growth to be valuable, it needs to demonstrate an ability to add substantially to the bottom line. The virtual leasing industry has low barriers to entry (as does the leasing industry in general), and is very competitive as a result. It will be difficult for Progressive to expand margins in this competitive environment.
Aaron's has a forward P/E ratio of just 14, making it a solid value for long-term investors. The company does have significant growth prospects ahead. The leasing industry is currently experiencing a downturn do to the improving economy. As a result, Aaron's stock is up just 6.3% this year, while the market is up 15% over the same time period.
Final Thoughts
Aaron's has an extremely low dividend yield. The company is experiencing rapid growth in its Progressive division, but this has yet to translate into profits. The company is also currently experiencing negative comparable store sales do to weakness in the leasing industry. On the plus side, Aaron's stock appears cheap at this time which could attract value investors.
Aaron's does not qualify for investment using The 8 Rules of Dividend Investing because it does not have a long enough dividend history. Nevertheless, the company makes an interesting choice for investors looking to hedge against recessions. Aaron's stock and underlying business has historically done well during recessions as leasing becomes more popular when the economy is in decline. The stock appears cheap at this time as well; investors could see gains from valuation multiple expansion.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.
More on AAN:
Aaron's, Inc: Rent-To-Own Leader May Be Underestimating Bad Debt Expense
AAN • Yesterday, 12:30 PM • Celan Bryant
Aaron's: Opportunity To Dominate Both Traditional And Virtual Rent-To-Own Markets
AAN • Sun, Dec. 14, 1:38 PM • Mark Lin
Aaron's Vs. Rent-A-Center: Whom To Own In Rent-To-Own
AAN • Mon, Dec. 8, 4:47 AM • Michael Boyd
More AAN »
posted from Bloggeroid
Let life unfold
Tuesday, December 23, 2014
Let life unfold
You put a great deal of energy and effort into moving your life in a particular direction. Show your confidence in all you’ve done, and in all you continue to do, by allowing life in this moment to unfold as it will.
Let go of your attachment to a specific result and let the good work you’ve done come to fruition. Though the results may not be exactly as you imagined them, they will surely bring the richness and fulfillment you seek.
You’ve done much to get yourself to this day. Now, accept the unique flavor of the day as it arrives in each moment.
There is much more you can do, with many new opportunities and possibilities coming your way. Accept this day, this moment, this time for all it is, and know that you can move positively forward from it.
Peacefully and thankfully let life unfold. As you do, continue to enthusiastically give your best to each moment.
This is your time to live, and to enjoy the positive difference your life makes. Let life unfold as it will, and delight in the new richness it continues to bring.
— Ralph Marston
Productive momentum
Other messages with similar topics:
Everything you have
Sweet success
The power of challenge
Read more at http://greatday.com/motivate/141223.html#QjwDgTjWR7VXKWrH.99
Let life unfold
You put a great deal of energy and effort into moving your life in a particular direction. Show your confidence in all you’ve done, and in all you continue to do, by allowing life in this moment to unfold as it will.
Let go of your attachment to a specific result and let the good work you’ve done come to fruition. Though the results may not be exactly as you imagined them, they will surely bring the richness and fulfillment you seek.
You’ve done much to get yourself to this day. Now, accept the unique flavor of the day as it arrives in each moment.
There is much more you can do, with many new opportunities and possibilities coming your way. Accept this day, this moment, this time for all it is, and know that you can move positively forward from it.
Peacefully and thankfully let life unfold. As you do, continue to enthusiastically give your best to each moment.
This is your time to live, and to enjoy the positive difference your life makes. Let life unfold as it will, and delight in the new richness it continues to bring.
— Ralph Marston
Productive momentum
Other messages with similar topics:
Everything you have
Sweet success
The power of challenge
Read more at http://greatday.com/motivate/141223.html#QjwDgTjWR7VXKWrH.99
posted from Bloggeroid
Monday, December 8, 2014
A LEARNED MAN'S MOMENT OF ZEN. OHmmmm
A LEARNED MAN once went to a ZEN Master to inquire about this stuff, this priceless, yet sought after intangible thing, this so called ZEN he hears of. As the ZEN Master talked, the LEARNED MAN would listen intently but frequently interrupt with remarks like, "Oh yes, we have that too," and so forth. Finally the the ZEN Master stopped taking and began to serve tea to LEARNED MAN; however, he kept on pouring and the tea cup overflowed. "ENOUGH! NO more can go into the cup!" the Learned Man interrupted.
"Indeed, I see, " answered the Zen Master. " IF you do not first empty your cup HOW can you taste my cup of tea?"
Sunday, December 7, 2014
These plays are being tracked under the username BMDEQUISPORTInv at PickMonitor
My Tracked Plays Risk 5.25 to win 5.00 [154] Cincinnati Bengals -3 -105 vs Pittsburgh Steelers Risk 5.50 to win 5.00 Pittsburgh Steelers OVER 47.5 -110 vs Cincinnati Bengals Risk 5.50 to win 5.00 [152] Miami Dolphins -3 -110 vs Baltimore Ravens Risk 5.00 to win 6.90 [156] Cleveland Browns +138 vs Indianapolis Colts Risk 5.50 to win 5.00 [156] Cleveland Browns +3 -110 vs Indianapolis Colts Risk 5.70 to win 5.00 [157] Houston Texans -6.5 -114 vs Jacksonville Jaguars Risk 5.25 to win 5.00 [161] Carolina Panthers +8 -105 vs New Orleans Saints Risk 5.10 to win 5.00 [163] Tampa Bay Buccaneers +10 -102 vs Detroit Lions Risk 5.00 to win 6.50 [160] Tennessee Titans +130 vs New York Giants Risk 5.75 to win 5.00 [165] St. Louis Rams -2.5 -115 vs Washington Redskins Risk 5.25 to win 5.00 [167] New York Jets +3.5 -105 vs Minnesota Vikings Risk 5.50 to win 5.00 [152] Miami Dolphins -2 (1st Half) -110 vs Baltimore Ravens Risk 5.50 to win 5.00 [154] Cincinnati Bengals -2 (1st Half) -110 vs Pittsburgh Steelers Risk 5.00 to win 6.00 [156] Cleveland Browns (1st Half) +120 vs Indianapolis Colts Risk 6.25 to win 5.00 [159] New York Giants (1st Half) -125 vs Tennessee Titans Risk 5.25 to win 5.00 [162] New Orleans Saints -6.5 (1st Half) -105 vs Carolina Panthers Risk 7.50 to win 5.00 [164] Detroit Lions -5 (1st Half) -150 vs Tampa Bay Buccaneers Risk 6.50 to win 5.00 [165] St. Louis Rams (1st Half) -130 vs Washington Redskins Risk 6.00 to win 5.00 [167] New York Jets +3 (1st Half) -120 vs Minnesota Vikings Risk 5.25 to win 5.00 [801] Washington Wizards -3.5 -105 vs Boston Celtics Risk 5.35 to win 5.00 [827] East Carolina +23 -107 vs North Carolina Risk 5.25 to win 5.00 [803] Denver Nuggets +5.5 -105 vs Atlanta Hawks Risk 5.45 to win 5.00 [169] Buffalo Bills +10 -109 vs Denver Broncos Risk 2.00 to win 8.00 [169] Buffalo Bills +400 vs Denver Broncos Risk 5.75 to win 5.00 [172] Arizona Cardinals +3 -115 vs Kansas City Chiefs Risk 5.00 to win 6.75 [172] Arizona Cardinals +135 vs Kansas City Chiefs Risk 5.75 to win 5.00 [170] Denver Broncos -6.5 (1st Half) -115 vs Buffalo Bills Risk 5.00 to win 5.75 [172] Arizona Cardinals (1st Half) +115 vs Kansas City Chiefs Risk 5.35 to win 5.00 [174] Oakland Raiders +8 -107 vs San Francisco 49ers Risk 5.00 to win 5.15 [176] Philadelphia Eagles +103 vs Seattle Seahawks Risk 5.50 to win 5.00 [174] Oakland Raiders +5.5 (1st Half) -110 vs San Francisco 49ers Risk 5.00 to win 6.00 [4] Carolina Hurricanes +120 vs Detroit Red Wings Risk 5.25 to win 5.00 [805] Oklahoma City Thunder -9.5 -105 vs Detroit Pistons Risk 5.35 to win 5.00 [807] Miami Heat +8 -107 vs Memphis Grizzlies Risk 5.25 to win 5.00 [811] Portland Trail Blazers -6 -105 vs New York Knicks Risk 5.35 to win 5.00 [810] Dallas Mavericks -9 -107 vs Milwaukee Bucks Risk 5.25 to win 5.00 Portland Trail Blazers OVER 195 -105 vs New York Knicks Risk 12.50 to win 5.00 [811] Portland Trail Blazers -250 vs New York Knicks Risk 5.00 to win 5.25 [177] New England Patriots -3.5 +105 vs San Diego Chargers Risk 5.00 to win 5.25 [180] Green Bay Packers -13 +105 vs Atlanta Falcons Risk 5.40 to win 5.00 New England Patriots OVER 52 -108 vs San Diego Chargers Risk 5.00 to win 7.00 [178] San Diego Chargers (1st Half) +140 vs New England Patriots Risk 5.25 to win 5.00 New England Patriots UNDER 26.5 (1st Half) -105 vs San Diego Chargers Risk 5.00 to win 5.25 San Jose Sharks OVER 5.5 +105 vs Edmonton Oilers Risk 5.15 to win 5.00 [813] New Orleans Pelicans -2.5 -103 vs Los Angeles Lakers Risk 5.25 to win 5.00 New Orleans Pelicans UNDER 209.5 -105 vs Los Angeles Lakers Risk 6.75 to win 5.00 [813] New Orleans Pelicans -135 vs Los Angeles Lakers Risk 5.05 to win 5.00 [2] Southampton (ENG-P) PK -101 vs Manchester Utd (ENG-P) Risk 2.73 to win 5.00 [2] Southampton (ENG-P) +183 vs Manchester Utd (ENG-P) Risk 2.04 to win 5.00 DRAW +245 - Manchester Utd (ENG-P) vs Southampton (ENG-P) Risk 5.00 to win 5.50 [180] Green Bay Packers -14 +110 vs Atlanta Falcons Risk 5.50 to win 5.00 Atlanta Falcons OVER 28 (1st Half) -110 vs Green Bay Packers Risk 5.50 to win 5.00 [179] Atlanta Falcons +7.5 (1st Half) -110 vs Green Bay Packers These plays are being tracked under the username BMDEQUISPORTInv at PickMonitor
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