View Full Version : LTD & AEA

James Boston
06-01-2005, 08:30 PM
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?

06-01-2005, 10:35 PM
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
06-01-2005, 10:50 PM
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.

06-02-2005, 06:23 PM

James Boston
06-03-2005, 08:36 PM
Thanks. I called AEA investor relations. I doesn't look good.

Any thoughts on LTD?

06-05-2005, 06:01 PM
Thanks. I called AEA investor relations. I doesn't look good.

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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
06-05-2005, 08:06 PM
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.