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Don't Get Tricked With Conn's Select Data

The fact that Conn's (CONN) traded higher by nearly 25% on Thursday, and then another 8% on Friday, behind fourth quarter and January's select data is mindboggling. Conn's reported that net sales increased 16.2% during the three months ending January 31 to $350.5 million, but more importantly, that its 60-day plus delinquency rate was 9.7%. While these numbers may seem OK compared to what investors have grown accustomed to in recent months, there are still plenty of reasons for concern.

First and foremost, Conn's revenue growth is meaningless at this point in time. Over the last year Conn's stock has declined 65%, and it hasn't been because of revenue growth concerns, but rather its rising delinquency rates could negatively affect the company. Back in early-2013, Conn's delinquency rate on accounts 60-days or more past due was 7%, but by this time last year, that rate had risen to north of… Read More …