This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

February 25, 2010 - First Cash Financial Services, Inc. (FCFS-NASDAQ) primarily operates pawn stores that lend money on the collateral of pledged personal property in the United States and Mexico. It also engages in the retail of previously owned merchandise acquired through pawn forfeitures and purchased from the general public.

As of December 2010, First Cash Financial Services owned and operated over 600 pawn and short-term loan stores, as well as financial services kiosks. The company was founded in 1988 and is based in Arlington, Texas.

FCFS is hitting all-time highs. It recently traded at $34.47 (Feb 2). That's well above the recent low of $7.50 made in March of 2009. When a stock is up almost 400% in 2 years, investors need to ask whether there's any more left in the stock. There seems to be.

Earnings have only gone higher since 2000 when they were 18 cents a share. 2010 closed with $1.76 (up from $1.39 in 2009). Eight analysts have the consensus opinion that 2011 will close at $2.08, then see earnings going to $2.43 in 2012. First quarter results should show 44 cents a share, up from 35 cents in the first period of last year. In the fourth quarter of 2010, earnings came in 34% higher than the same period in 2009.

How can a pawn operation have better prospects when a recession is over? It's because banks and other lenders are still tight on credit. While they have the funds to lend, they're not. Into that void the pawn broker slips. Of course, the high unemployment rate also plays a part. There's no real sign yet of people getting back to work in significant numbers. When a borrower goes into a pawn shop, there's no credit check, no need for a job. The borrower gives something for collateral and gets the money. No worries about credit scores or background checks.

The most common form of collateral? Gold jewelry. Think about that in terms of the inventory FCFS holds. It becomes more valuable. Prices are raised for selling an item, profits increase. And with tension in the Middle East only mounting, there's nothing to suggest that the price of gold is coming down any time soon.

The company is expanding in Mexico as well as adding stores in the U.S. It's moving quickly to establish more of a base as the current circumstances of high unemployment, tight credit and higher gold prices won't last forever. Within two to three years, expect profit to grow from higher volumes, not external forces.

Essential numbers: Price to sales ratio is 2.21. Price to Book is 3.19. Operating margin for the last 12 months was 19.70%. Profit margin is 13.37%. Return on equity is 21.26% and Return on assets is 17.73%. There's total cash of $67.24 million or $2.19 a share. Total debt is $1.85 million or less than 1% of capital. Current ratio is 5.92. Book value per share is $9.70. Beta is .87. In the last 52 weeks the stock is up 45.26%. The high was $34.47, the low $19.82. There are 30.71 million shares outstanding with a Float of 27.65 million. Insiders own 15.5% of the stock. Institutions have 79.40% of the Float. There is no dividend.

Aggressive investors who trade may find this one worth consideration. Long term buy and hold accounts probably don't like the idea of trying to time when to get out of a stock because external factors are changing. Still, the momentum in the stock's price make it compelling and with more stores opening, stubborn unemployment, high gold prices and tight credit, there's no question FCFS is going to make money this year.