Portfolio Recovery Associates, Inc. (NASDAQ:PRAA)

15% projected growth, forward p/e 10, dominant in industry

Growing company in an industry no one seems to want. History of beating earnings estimates, decent balance sheet. Company has tons of free cash flow. Meets 6 of 6 tests to make it a Peter Lynch stock: industry domination, good cash flow, good balance sheet, cheap relative to future earnings, good earnings growth, unlikable industry.

Slowing growth in the states couple with a Greek default and austerity in the other eurozone countries should increase the distressed debt offerings quite a bit no? I'm going iiiiin.

Nasty business but making money. Huge shorts make this an easy pick.

Fast growth, cheap, underfollowed

HG

Management with great experience/knowledge in debt collection biz, decent growth expectations, stock unfairly pummeled over last few months. Great combination for market-beating.

PRAA got taken out behind the woodshed and shot. Repeatedly. On no news. At this level, the company could pretty much shutter its doors, run off existing collections, and still be worth every penny of the share price. Debt collection isn't going away, no matter how much we may dislike those who do it. This is a long-term cash machine on sale.

I'm losing here on caps, but that is OK because if PRAA goes down to $60.00 I'm buying a real position.

I don't think that it goes much higher. Business model is not going to work in an extended recession, since most of the debt they buy is unsecured.

It's not surprising this company has done well in a poor economy. That's when debt gets sold to collectors at a discount. On the other hand, if the economy improves they'll probably collect on a larger portion of the portfolio they already own, so I'm going to continue to hold this one until it does, then reevaluate.

Doing nicely and should accelerate from here...

Excellent overall performance outperforming S & P

Earnings up 66% over last year. Sales up 39% over last year. Beat earnings estimates by 2%. Worth $108.75. Trading at a 69% discount.

Debt is kicking in in all the wrong places, and much will go default. A company like PRAA is there to profit.

I've gotta agree with John Gillies assessment of the company (as well as Bill Mann's initial assessment). Solid management backs this company.

I sold real shares today I'd been holding since 2006-07 for only a 12% total gain. You have to think some of today's jump is due to short covering.. so a short-term down thumb.

Established provider, long term potential.

Because the supply of distressed assets should rise and the price should fall in a down market you might think that a firm in PRAA's line of business would thrive, but I'm a firm believer in the old adage that "You can't get blood out of a turnip." By that I mean that no matter how cheaply they're able to buy debt, their collections and recoveries will be so meager that they'll end up on the losing end of the bargain. Many American consumers are tapped out--deeply in debt, and increasingly unemployed and homeless. People in such circumstances will just laugh when collectors warn them about damaging their credit ratings. PRAA will fall on the same hard times as their prey.