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$27.78 1.60 (6.11%)
11/21/2008 4:00 PM

Portfolio Recovery Associates, Inc. (PRAA)

CAPS Rating:
*****

A full-service provider of outsourced receivables management and related services. The Company's primary business is the purchase, collection and management of portfolios of defaulted consumer receivables.

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Recs

5

Avatar collinmcb2 (96.48) Submitted: 2/21/08 8:58 PM : Outperform Start Price: $33.34 PRAA Score: 27.14

I bought this back in January when everything was a bargain at $30. I sold about a week later for $36 for a nice 20% gain. I was hoping for a big earnings upset today to bring the price down so I could buy again, but their outlook seems to be very stable, which is also a plus. I like that they are spending a lot of money on buying receivables right now. They are unloading their cash when collectables are a bargain, which should prove to be a profitable move in the upcoming years.

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Avatar collinmcb2 (96.48) Submitted: 4/30/08 1:02 AM

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Currently holding most of my money in here. Very, very solid long term play. I love the amount of debt they have been buying up. The have plenty of credit available for more bad debt. There is so much cheap debt out there for purchase. Debt collection is an extremely fragmented business, PRAA is one of the leaders which gives them a competitive advantage in purchasing even cheaper debt. Target price in a year $80.

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Avatar collinmcb2 (96.48) Submitted: 4/30/08 6:01 PM

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Portfolio Recovery did well on their revenues, their income was a bit under the analysts expectations though. But most importantly, they maintained their positive outlook. They do not appear to have much trouble collecting, even in these times, which was my biggest concern. I am sticking to my strong outperform call on this one. I have 45% of my money in here. I feel it is one of the best bets for the coming years.

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