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$39.69 -0.19 (-0.48%)
10/7/2008 3:45 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

7

Avatar pytheian (35.16) Submitted: 4/24/08 6:49 PM : Outperform Start Price: $40.02 PRAA Score: 10.94

Buying on low Price to Book which is where they mine their money from. Taking on debt, presumably to buy other debt, but still has high interest coverage so I like the aggressive approach. Not especially efficient but keeping up in rev and margins and discounted to industry in general. Laws passed in the past few years have made bankruptcy more expensive. Still lot of people out there with something to lose. Keep an eye on political developments though; next Congress will be Democratic and will look to ease bankruptcy laws.

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