Liberty Tax has a new radio and internet promotion that prompts a bit of a chuckle.  Here is a link: You have to cue up the radio by clicking on the “go” triangle.

The promotion gives any person with the name “Johnson” a free federal e-file (a $9.95 value) at Liberty Tax.  The Basic E-file is Liberty’s basic tax prep service. It serves people who don’t itemize, don’t have a mortgage or children, and want to use a short form.  The basic service also “features” an opportunity to get a nifty refund anticipation loan.

I have to wonder why they would pick “Johnson.”  Why?  Granted, there are a lot of Johnsons – more than 2 million, according to Liberty’s own reference from Census.

I know one Johnson out there that might not want Liberty’s free promotion. Magic Johnson has been shamelessly promoted Jackson Hewitt’s products for a few years.

Jackson Hewitt has their own promos.  If you have access to a computer, you can download a $20 coupon here.

Liberty’s most persuasive promo has been the Send a Friend program. If you convince your “friend” to take their tax work to Liberty, they will send you $20 good toward your return.

What a bunch of Johnsons.

Yesterday’s earnings report at Pacific Capital was, at best, a mixed bag.  Pacific Capital lost 87 cents per share.  They were expected to lose 80 cents per share, but then again, last quarter they lost $7.77 per share, so maybe it is a vast improvement.

CEO George Leis was optimistic about their quarter.

“The aggressive approach we took earlier in 2009 towards resolving our problem loans helped drive a substantial decline in our credit costs, particularly in the construction and land portfolio, said Leis in a prepared release.  “While our credit costs still remain elevated above historical levels, we are encouraged by the moderation we experienced in the third quarter.”

Gee, that’s swell.  Lose $41 million, call it encouraging.

This earnings report should concern shareholders not just at Pacific Capital, but also franchise owners and shareholders at their RAL partners, Jackson Hewitt and Liberty Tax Service.

Unusual Accounting

The problem for PCBC is that they don’t have much more room for more losses.  Shareholder equity is now just $397 (more…)