THU 5/1: EZPW – Very Bearish Action, Sharp Sell Off on More Than Twice Normal Volume

9:55 PM -Today the company announced retirement of $103.4 Million convertible notes.

FROM MY 12:28PM SMS UPDATE:

Very disappointing action today, especially after yesterday’s somewhat bullish move.

I admittedly missed the SELL SIGNAL of a break of the recent low at $15.80 at 10:15AM.

FROM MY 3:54PM SMS UPDATE:

Today’s declines were halted near $15.40 twice.

Shares have been advancing into the close.

I’d like to see a close above $15.65.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

While the immediate market reaction was negative, primarily due to share dilution, the long-term effects could be beneficial. Reducing debt and preserving cash positions for potential future growth and financial stability.

Investors may need to weigh the short-term dilution against the company’s improved financial footing.