Saturday, March 21, 2015

Special Dividends And A Looser Credit Agreement May Signal A Turnaround At QC Holdings

I recently wrote an article for SeekingAlpha about alternative finance company QC Holdings (QCCO). The company has seen its revenues and earnings fall significantly since 2008, which has caused its stock price to plunge nearly 80%.

That said, the company may be going through a turnaround. It has declared special dividends two quarters in a row after not being able to pay dividends for a year. This shows that management is confident in the company's future--or at least confident that they don't need to hold onto more cash to deal with future problems. The company's credit agreement, which controls the terms of its loans, has also become less restrictive. This mean that the company's bankers are less worried about its financial situation. Given than QC Holdings' management and bankers are probably the people who understand the company's prospects best, this is a strong endorsement of the company's future.

Anyway, the article can be found here. It was chosen for SeekingAlpha's Pro program, meaning that it will only be available to non-paying members for a month, so I hope you'll check it out soon!

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