This space for Rentcash.

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Author: Leung, Calvin

ANALYSIS

Rentcash had one heck of a business model. The Edmonton-based payday loan company-which had the highest one-year return on our Investor 500 ranking in May--connected risky borrowers with lenders willing to provide cash at high interest rates. The firm collected a fee, while avoiding the cost of bad debts. But it recently began compensating lenders for losses stemming from bad debts, to ensure they receive an adequate return. The change makes Rentcash less profitable, and its shares declined roughly 60% in the two weeks ending Sept. 21. While three analysts covering it now rate it a Buy, two of them consider it speculative. (For more, see "Bad loans rising'" at www.canadianbusiness.com/webonly.)

STOCK PRICE: 11.45

1-YEAR RETURN: 349%

PRICE/EARNINGS: 27.3

PRICE/BOOK: 9.5

PRICE/SALES: 2.5

EARNINGS PER SHARE*: 0.42

* TRAILING 12-MONTH

SOURCE: BLOOMBERG

GRAPH: RENTCASH

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By Calvin Leung