Re: A Favorite Stock, NICK
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DC
You seeing any of this bad subprime mortgage data making the rounds? You changing your take on this one at all at this point in the cycle?
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Nope and nope. I'm pretty confident about NICK's underwriting standards. My thesis is they are dealing with the fallout fromt the real estate bubble bursting in Florida, which do to having a bunch of fraudulant speculation, is way over built. The construction workers that NICK financed are having big troubles now. I don't know how long it will take, but expect them to eventually work through those issues and continue growing as before. As long as we don't get the double whammy of a recession:
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By the way....i have some HF friends who have been buying KKD FWIW.
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I hope it works out for them. But I think it's insanely overpriced. And they are still shrinking, they shut another store yesterday. I bought some more 08 $10 puts earlier this month, but am primarily letting my positions unwind and taking my losses.
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