Don't know a lot about ABM but a pawnbroker should do well in a credit crisis, and a P/E of 13 doesn't seem excessive. Would welcome any input on the company...
Yep, agreed that this should outperform. Albemarle & Bond only deals in jewellery, and typical pawned items include gold chains, bracelets and wedding rings. It recently reported a 19pc rise in profits after "inflexible" lending practices by banks forced customers to look elsewhere for credit.
Charles Nicolson, Chairman said, "This was a good trading performance positioning the Company to deliver a strong result for the full year. Reduced activity from mainstream lenders and strong gold prices combined to make this another favourable environment, with trading further enhanced by the continued excellent performance from Herbert Brown, the UK's third largest pawnbroker, acquired in July 2007. Whilst income from financial services was reduced in the face of more difficult trading conditions, the Board is confident in the Group's trading outlook and is recommending an increased dividend for this first six month period."
http://www.stockopedia.com/news/announcement/ABM/090223abm6915n.htm
