Its Never a Problem… Until it IS a Problem
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The State of Denial at World Acceptance Corp….Citron Keeps Target at 0.
To say we are entering into a new phase of consumer protection regulation is an understatement. Just last week the US Senate, in a rare bi-partisan landslide (90 to 5), passed a credit card reform bill — by a margin so wide that one can say the country now has a mandate to protect borrowers from lending abuses. President Obama has even gone so far as to call for a new financial watchdog agency just to protect consumers.
In early 2009, Citron warned about future regulation in the for-profit education space, in a series of reports on Apollo Group. Subsequently, the stock has been down over 35% and just yesterday the government announced some proposed regulatory changes regarding marketing and recruiting expenses. As investors, we must not focus on what is status quo but rather what will be status quo. (more…)