Asta Fdg Inc (NASDAQ:ASFI)

CAPS Rating: 5 out of 5

Acquires, manages, collects and services portfolios of consumer receivables. These portfolios generally consist of one or more of the following types of consumer receivables: charged-off receivables; semi-performing receivables and performing receivables.

Recs

1
Player Avatar whitepapers (94.88) Submitted: 5/21/2008 11:47:55 AM : Underperform Start Price: $7.36 ASFI Score: +33.26

They had to borrow money from their Chairman of the Board, CEO, and members of their families, on an unsecured basis, to advance approximately $8.2 million to the Company.

They have 293MM in debt and only 3.5MM in cash. They lost $.54/share in 2Q08. Much of their business is based on selling debt back to the market, which is fine when debt buying is strong but when it is weak (like it is now) and pricing gets more reasonable their business model starts falling apart. So my pcik is predicated on the assumption that they are holding a lot of debt that they won't be able to collect on and that they won't be able to sell back to even cover their purchase price. When you add in their incredible interest expense (4.7MM this quarter), I think they they are in real trouble.

Member Avatar haddeee (< 20) Submitted: 10/29/2008 3:28:54 PM
Recs: 0

Right on. Now what do you think from here? Any value at all?

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