LTD & AEA

[James Boston]

I can't decide what I think of these two. LTD seems to own too many brands, all of which I don't expect will do very well. But every chick I know shops at Victoria's Secret.

AEA is a paycheck advance place. I seem them everywhere, and they seem to be making money, but I'm clueless as to what the future holds for that industry.

Any thoughts?

[AceHigh]

Stay away from the paycheck places for now. The FDIC changed the rules on these guys and they are going through a transition period...it will be tough to predict how they will perform.

[James Boston]

I'm confused. I admit I know very, very little about finance. But what does the FDIC have to do with check advances? I thought they just insured deposits, not loans.

[AceHigh]

http://biz.yahoo.com/fool/050516/111626012904.html?.v=2

[James Boston]

Thanks. I called AEA investor relations. I doesn't look good.

Any thoughts on LTD?

[DesertCat]

[ QUOTE ]
Thanks. I called AEA investor relations. I doesn't look good.

[/ QUOTE ]

What did they say that was so bad? My understanding of the new regs is that they limit each loan client to 3 months of loans per year. That's still a lot of loans. I'm still holding a significant investment in this area until proven otherwise.

[James Boston]

6 loans per year max. Most of their regular customers are borrowing way more often than this. And in the case of AEA, about 22%-24% of their net income would be affected. July 1 is the expected ruling date.