Re: A Favorite Stock, NICK
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Interest rate hedges are rolling off on about $10 million of debt per year resulting in increased funding costs, deliquencies increasing, discounts on loan purchases decreasing, and only $10 million of availability on the bank line.
Do you see anything to suggest these negative trends are ready to turn?
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Not in the short term. BTW, they could increase their loan line any time they want, and they will do so shortly.
Also, the Jeffries report on NICK that was just released recommends "hold", essentially it says quality company, but dealing with some tough trends this year.
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