CompuCredit Corp (CCRT)

CCRT at today's prices should provide investors with anywhere from 30-70% annualized returns over the next 3-5 years.

Concerning current worries regarding the consumer debt bomb/recession...investors should keep in mind that:

1 - Historically, underwriting and controlled growth are much more important factors than general economic activity when evaluating ccrt's operating performance
2 - Management has an impressive record of performance through last economic recession and has more experience this time around
3 - CCRT's competitive environment is significantly improved now compared with early in the decade.
4 - Mgmt's recent analysis of customer exposure to current mortgage woes sits at 1.3-1.8%, an immaterial amount.
5 - Mgmt has shown themselves to be savvy and disciplined allocators of capital, opportunistically deploying capital time and time again over the co's history.

Core credit card business is extremely profitable with apr's north of 30%, not to mention that the business lends itself to recurring revenues and customer loyalty. Mgmt. expects strong growth in years ahead. Mgmt. expects even stronger growth in their emerging businesses. These emerging business's should drive significant earnings growth going forward, as they employ their proven money making techniques within these new markets.

Runway is long...potential market within the US is roughly 75m, within the UK is 20m

Mgmt. owns 60% of shares outstanding. Roughly one fifth of float is currently authorized for buybacks...mgmt. has been buying back stock over the last few quarters and will likely continue to. Insiders have been buying recently as well. Considering their outstanding track record of allocating capital in the past, the fact that they bought back stock at levels significantly higher than todays prices is telling.

Seasoned management and excess lIquidity deployment (due to their under leveraged balance sheet) are a significant positive, especially in current environment.