Conn’s (NASDAQ:CONN), a specialty retailer of appliances, furniture, home office products and electronics that also provides in house financing, spiked over 20% on Feb 5th. The bullish sentiment continued this week with analyst upgrades after the company released surprising January data. Given the company’s fragile performance, investors may be jumping the gun on a Conn becoming a potential turnaround.
The Rewards & Risks of Subprime Lending
Conn’s roller coaster like trajectory is a cautionary tale to other furniture firms. The company had experienced tech-startup like growth from 2011 to 2013 resulting in share price appreciating close to 1500% due to high same store sales growth and alluring margins. However, the main engine for this growth was an in-house financing prog...