QC Holdings: Not Quite Ready For The Dividend Investor

My recent stock screening in the micro-cap area turned up an interesting candidate for investment, QC Holdings (QCCO). QC Holdings Inc. and its subsidiaries is engaged in providing various financial services (primarily payday loans) and sell used vehicles and earn finance charges from the related vehicle financing contracts. The Company operates in three segments: Financial Services, Automotive and E-Lending. (Yahoo finance.yahoo.com/q/pr) Its 52 week chart shows a substantial loss of 28% in share value. A closer look reveals that QC Holdings has suffered significant quarterly earnings losses of 80% yoy and even a loss of 6.8% quarterly revenues yoy. It seems as though this one could be headed for the dust bin. QCCO Cash from Operations Quarterly data by YCharts However, on a positive note, the company has no debt, and still has a gross margin above 20% and profit/net margins of 3%-5%. Shareholders also enjoy a roughly... Read more

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