$45.36 -1.41 (-3.01%)
11/27/2009 1:00 PM

Portfolio Recovery Associates, Inc. (PRAA)

CAPS Rating: 5 out of 5

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.

Results 1 - 16 of 16

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Member Avatar swantly (< 20) Submitted: 2/4/2009 5:29:21 PM : Underperform Start Price: $22.14 PRAA Score: -70.04

LTD/Equity is a bit high. I suspect bad credit will increase at greater rate than normal d/t US and worldwide economic conditions. I suspect this company will have a more difficult time collecting on bad debts.
Great stock, but I wouldn't be surprised to see it in the mid-teens in coming months.

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Member Avatar monikasfantasy (< 20) Submitted: 6/23/2008 12:50:38 PM : Underperform Start Price: $40.97 PRAA Score: -25.48

very much ibbdemand

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Member Avatar susanchhun (30.01) Submitted: 5/25/2008 5:10:41 AM : Underperform Start Price: $40.77 PRAA Score: -28.80

hi how are you

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Member Avatar soundsound (< 20) Submitted: 3/31/2008 3:06:42 PM : Underperform Start Price: $42.42 PRAA Score: -20.77

I can't imagine that rate cuts coming down the pipeline will help PRAA in any way. The business of selling debt short is also not the most effective way to increase capital.

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Member Avatar atomixxx (26.15) Submitted: 3/21/2008 12:19:47 PM : Underperform Start Price: $43.35 PRAA Score: -19.40

score of 4 on my 12 point scale. 60% of stocks scoring 6 or less have underperformed the S&P500

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Member Avatar VOLaughlen (26.11) Submitted: 3/4/2008 3:34:46 PM : Underperform Start Price: $37.96 PRAA Score: -33.68

Bottom line is that this company is buying debt hand over fist, but they will have major problems collecting in the near term. I see earnings dropping over the year. I love this stock in the 3-5 year timeframe. Underperforming for the year.

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Member Avatar sarkasm (97.69) Submitted: 1/21/2008 3:37:49 PM : Underperform Start Price: $27.75 PRAA Score: -73.69

I was astonished to find out how many outperform votes go to this stock. Obviously, nobody read the balance sheet.

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Member Avatar CaptKrunch (< 20) Submitted: 1/7/2008 8:54:36 PM : Underperform Start Price: $35.17 PRAA Score: -48.60

This one still has plenty of room on the down side.

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Member Avatar blackmonday2007 (33.13) Submitted: 9/27/2007 5:07:26 AM : Underperform Start Price: $53.04 PRAA Score: -10.45

People losing houses dont owe anything to collect
this stock wont make any big moves slow growth stock that wont keep u up at night worring

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Member Avatar joearctic (< 20) Submitted: 8/4/2007 8:05:54 AM : Underperform Start Price: $46.52 PRAA Score: -17.52

I'm gonna sell this stock if it gets back to July, 2006 level.

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Member Avatar deena11 (< 20) Submitted: 7/30/2007 5:44:45 PM : Underperform Start Price: $53.56 PRAA Score: -6.93

CEO just sold 10,000 shares.

I'm out, plus read the rip off report on this company at ripoffreport.com.

This company is not for me.

Better ways to make money than how these guys go about it.

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Member Avatar saanca500 (86.49) Submitted: 7/11/2007 8:06:15 PM : Underperform Start Price: $61.65 PRAA Score: +2.12

This kind of stock is so hard to peg. PRAA is all about collecting debt. In an ideal world, PRAA and companies like it would have no trouble re-acquiring monies for their clients, but it is a difficult process that no one denies. Still, this company's income is derived from 1) increased debt and 2) increased ability to collect.

Yet, the housing market is down and banks are getting more and more stingy with who gets loans (especially house loans). Too, cars are getting cheaper and cheaper. Let's face it, it is the home and auto market that drives the big dollars to the collectors, not Blockbuster late fees.

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Member Avatar TxDude (< 20) Submitted: 6/21/2007 7:15:35 PM : Underperform Start Price: $59.55 PRAA Score: -0.05

Overheated, overpriced. Buy moderately priced competitors instead.

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Member Avatar bluex2k7 (87.67) Submitted: 4/11/2007 6:25:55 AM : Underperform Start Price: $43.37 PRAA Score: -24.61

deadbeat will be deadbeats

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Member Avatar taglizzy (< 20) Submitted: 1/23/2007 8:46:46 AM : Underperform Start Price: $43.30 PRAA Score: -23.01

iT'S OVERBOUGHT. PRICE NOT QULAIFIED WITH PE.

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Member Avatar Godzilla110 (23.62) Submitted: 1/14/2007 4:53:54 AM : Underperform Start Price: $46.00 PRAA Score: -17.32

Several notable items lead me to rate this an underperformer:

1. 1 trillion of ARMs will reset over the next two years. PRAA focuses on consumer debt collections, and these will be placed on the defaulter's backburner as mortgage debt will take the higher priority.

2. Barriers to entry are fairly low, and competition has been driving up cost of default debt acquisitions, hurting margins.

3. The new congressional leadership can be expected to shift back to the side of defaulters when considering consumer credit and bankruptcy legislation.

4. The IRS now requires companies that write off a consumer debt greater than $600 to issue a 1099-C to taxpayers. This makes the cancellation of debt taxable to the individual taxpayer. All other issues aside, a defaulting consumer that pays tax on their debt relief will be very hard pressed to then pay off their debt to a collection agency.

Considering these trends, PRAA's share price should suffer over the short and mid-term. The shorts are right on this one.

Results 1 - 16 of 16

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