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There aren’t 13 floors in a hotel because that’s unlucky. However there are 13 consecutive profitable trades for $$$MR. MARKET$$$ because he is HUGE! That’s right ladies. I did it again. You don’t have to pray to make money in the stock market. All you had to do was buy PRAA. Today I sold PRAA at 145.73. That’s a 16.5% gain over my purchase price of 125.04 when I bought this winner back on March 16, 2013. That’s a 16.5% gain in less than 8 weeks. That’s like a 108% annualized gain.
That’s insane. That’s absurd. That’s real money. Over the same period, the S & Peee 500 only made 4.2%. Which would you rather have…16.5% or 4.2%. You sees, I am superior to the market. I have 13 consecutive profitable trades of 15% or better…they just keep coming and coming over and over red rover red rover.
Can you do that? You? YOU?? YOU???? Did you buy any PRAA? You? YOU??? YOU??!! If you bought it when I did, you’d be all happy now. If you’re all happy now, I hope to can take the time to buy a super bowl raffle ticket from www.dereksdreams.com or if you can’t do that, tell a friend about www.mrmarketishuge.com
If you can’t do that, at least you can tell me you like getting these emails…cuz if you don’t I won’t send you any more picks.
I am HUGE!!!
Bring me your finest meats and cheeses!
$$$MR. MARKET$$$
================================================== ================================================== =============================
03-16-2013, 04:09 PM
mrmarket
Administrator
Join Date: Sep 2003
Posts: 4,334
PRAA ==> The Riverwalk Winner
Sometimes the Titans go to the casino and they get all hammerhead sharked and head for the high roller pit. You know when you’re at the blackjack table and the Cognac and Coke is flowing and then it’s followed by the Johnny Walker Blue – you just can’t lose. CAN’T LOSE. You start stacking up the black chips, then the purples ones. It gets ridiculous, the eye in the sky comes over and the pit boss says “I’m very happy for you.”
Then you have to take a break eat some noodles and you have to siss. So you head to the batcave in the high roller pit and the guy who used it before you has already sissed all over the seat. So you think, “Most excellent”
Anyway you head back to the table and start playing again, but something is different. Your friend, “The Cooler” walks up behind you and starts saying, “Hey what’s going on, you excellent guys are losing all your quatloops”.
So you bet big to win big and then when you start to lose you bet even more to punish yourself. Pretty soon all your quatloops are gone.
Have no fear, you reach into your wallet and pull out your Sunoco card, which gives you $4000 of cash credit. You head over to the casino cage and take out more monies. You are happy to sign the credit voucher for 20% fees…hey you’re gonna win it all back in no time.
You get excellent cards. Double down, split but the dealer doesn’t bust. The dealer keeps pulling 21’s and pretty soon all of your quatloops are all gone again. Now you have to get up and do the walk of shame back to your hotel room.
You wake up with a hangover and no monies for breakfast. Oh shizzle…what about that credit card bill??? Nothing to do now but pray…or better yet. Just PRAA!
On Friday I bought stock in PRAA (Portfolio Recovery Associates) at 125.04. I will sell it in 4 to 6 weeks at 145.05. Here’s why I like PRAA
First of all, look at the chart:
This stock is up 78% in the last 52 weeks and its PE is only 17. Lots of room to run and boy is it ever running. The really good news is that the forward PE is only 12, which means unless the stock price of PRAA continues to climb, this stock will get cheaper and cheaper on a valuation basis. The stock has to go up.
How does this company make money? Well you owe the bank the $4000 you borrowed with your credit card at the casino. You are all faceful so you don’t want to pay it back. Now the bank gets all nervous because they don’t think they are going to get their money back so they start whacking you with late fees and finance charges. You start to think that everything is wrecked. That’s when PRAA steps in. They offer to buy the debt from the bank for you. They pay the bank $1000 and say take it or leave it. The bank tanks it. Then PRAA gets with you and works out a favorable repayment plan that you can live with, so they eventually get their money back and then some. When payment plans are reasonable, they provide a mechanism for customers to eliminate debt as well as a low-cost recurring cash collection stream for PRAA. Everybody’s happy.
Portfolio Recovery Associates, Inc., a financial and business service company, engages in the purchase, collection, and management of portfolios of defaulted consumer receivables in the United States and the United Kingdom. It detects, collects, and processes unpaid and normal-course accounts receivables owed primarily to credit grantors, governments, retailers, and others. The company also acquires receivables of Visa and MasterCard credit cards, private label and other credit cards, installment loans, lines of credit, bankrupt accounts, deficiency balances of various types, legal judgments, and trade payables from various debt owners, including banks, credit unions, consumer finance companies, telecommunication providers, retailers, utilities, insurance companies, medical groups, hospitals, auto finance companies, and other debt buyers. In addition, it provides fee-based services comprising vehicle location, skip tracing, and collateral recovery services for auto lenders, governments, and law enforcement; revenue administration, audit, and debt discovery/recovery services for local government entities; and class action claims settlement recovery and related payment processing services. The company was founded in 1996 and is headquartered in Norfolk, Virginia.
Portfolio Recovery has quickly become one of the most profitable players in the industry. How do they do it? They are data driven & analytical. They use actuarial science to properly value and liquidate distressed consumer debt. They are good at locating missing collateral. They are also good at cleaning up the sloppy mess left over by bad accounting and can Identify missing revenues for government and businesses. They are like really good cleaning ladies. They find your wife’s missing earrings.
Over the past ten years, the company has grown revenues by 26.7% annually through an adherence to a code of ethics and a conservative management of its balance sheet. In 2012, Portfolio Recovery finally took its business model into international waters with the acquisition of Mackenzie Hall, a U.K.-based debt recovery company.
Portfolio Recovery prefers the bankruptcy market segment (hence their company name), which accounted for almost half of its portfolio acquisitions during 2012. While bankruptcy-related receivables have a higher purchase price compared to defaulted consumer debt, they require less manpower through the resolution process, leading to a higher profit margin. They are buying the stuff at pennies on the dollar, collect a portion of it and make their money that way.
Tracking down debtors in default can be tedious and costly for small companies. However, the large firms have the resources to scientifically calculate the odds of repayment and leverage their expertise with the legal system. PRAA does quantitative analysis on human behavior. They know who is likely to permanently default and who is just temporarily up to their ears but is willing to make amends.
Portfolio Recovery’s return metrics are on 9.79% on assets, 18.56% on equity and 10.28% on investment. Portfolio Recovery is known for good price discipline in buying assets. They know how to drive a hard bargain and really know when you have no other real recourse.
Portfolio Recovery’s bottom-line results have been really looking good over the past few quarters and cash collection revenues have been very strong. Most distressed consumers don’t pay. You have to have experience to know which ones do. Most missing collateral can’t be located but PRAA knows how to find it. Most tax errors won’t be discovered, but PRAA knows how to discover them. Many potential class action claims are not filed or optimized, but PRAA knows when there’s money for the taking. They have the knowledge and the expertise.
$2.7 trillion in U.S. consumer debt outstanding and not all of it is going to get paid back without intervention. The really cool thing is that there are fewer debt buyers as market continues to consolidate. That means there is less competition and, as a result, PRAA pays less for the liabilities that it takes off of others hands.
So what does this all mean when it when the rubber hits the road? When it comes down to the most important detail of all? What about earnings?
For full-year 2012, Portfolio Recovery reported operating income per share of $7.39, which surpassed the ANAL-ysts estimate of $7.29 and prior-year earnings of $5.85.
Portfolio Recovery’s revenue amounted to $592.8 million in 2012, showing a year-over-year increase from $458.9 million. The company’s full-year net income came in at $126.6 million, up 26% from $100.8 million recorded in 2011.
Portfolio Recovery exited 2012 with total assets of $1.29 billion, increasing from $1.07 billion as of Dec 31, 2011. Shareholders’ equity stood at $708.4 million as of 2012-end, compared with $595.5 million as of Dec 31, 2011.
In February, PRAA reported the following 4th quarter and annual results:
Cash collections of $229.2 million, up 27% from the fourth quarter of 2011.
Revenues of $154.3 million, up 31%.
Net income of $35.8 million, up 35%.
Diluted EPS of $2.10, compared with $1.54 a year ago.
Portfolio Recovery Associates has a very low debt (total debt to equity is only 0.37) and the PEG ratio is very low at 0.98. The price to free cash flow for the trailing 12 months is very low at 12.70. The average annual earnings growth for the past 5 years was quite high at 16.16%. ROA is 15% and ROE is 19%.
The cheap valuation, the strong growth prospects, the analyst's recommendation and the impressive 4Q financial results; all these factors make the PRAA stock quite attractive. As credit looses up, which it is, there will be more credit in arrears. This will be the engine that drives more earnings growth for PRAA.
When I was a kid, I used to listen to WEEI SPortsline 59 with Steve Fredericks when I was doing my homework. He used to booze on the air and then Dario would call him up and ask him why he never talked about Roxbury Latin sports. Now I don’t know if this guy is related, but Steve Frederickson is the boss of PRAA and here’s what he had to say:
"PRA again reported record operating results in the fourth quarter and for full year 2012, continuing a trend of strong year-over-year growth," said Steve Fredrickson, chairman, president and chief executive officer, PRA.
"Our financial results were led by increases in cash collections from our receivables portfolios. Cash collections were $908.7 million in 2012, up 29% over 2011. In 2012, we received a record 8 million payments on our debt portfolios. This includes growth in the number of recurring payment plans from customers to eliminate their debt, which provides a low-cost, recurring revenue stream for PRA. This record level of payments places PRA in an excellent position to continue to prosper in 2013 and beyond," Fredrickson said.
“Our results once again demonstrated the strength of PRA's business model focused on diverse revenue and earnings from our bankruptcy business, our core debt purchase and collections operations and our business in government service subsidiaries. Today PRA is in an excellent position to continue to grow and prosper during 2012 and beyond. Let me take you through highlights of
our record Q4 and full year results.
Return on equity of 20.6% exceeded our 20% benchmark in Q4. For full year 2012, I'm pleased to report that return on equity rose to 19.6% from 18.5% in 2011. In Q4 we acquired $1.9 billion in face value of finance receivables for a total purchase price of $199.1 million including $69 million purchased from NCM. These receivables were purchased at 104 defaulted debt portfolios from 19 different sellers. Pricing remained very competitive in Q4 as it did throughout all of 2012.
For full year 2012, total portfolio purchases were a record $538.5 million with a total face value of $6.2 billion. Our expanded focus on legal collections from customers who can but won’t pay their debt continued to produce strong results. Legal collections totaled $65.5 million in Q4, up 49% over the fourth quarter of 2011.
Our bankruptcy business continued to grow and comprised 40% of our total cash collections in the fourth quarter. In Q4 collections from purchased bankruptcy portfolios totaled $91.1 million, a 21% increase from the fourth quarter 2011.
Having now the expertise and the data set that we've obtained from the employee group and from the assets that we bought in that deal, we can underwrite these secured bankruptcy assets with a much higher degree of confidence than we have been able to in the past. And as a result, we're competitive in that market and have been able to do some additional buying.
I would say what we saw in Q4 is to a degree continuing in Q1, and it's really two-fold. Number one, we're seeing decent flow of portfolios both in terms of resale and direct from issuer. But this phenomenon of a consolidation in the industry is real and is continuing. And as a result, we have seen our win rate move up slightly, and that's having an impact on the amount of money that we deploy in a quarter.
We think that we're very, very good underwriters as demonstrated by the track record that we've built over the last eight years or so in the bankruptcy market. And we think that our cost to administer these claims is as low as it gets. I mean we are really proud of the engine that we've built here. And so if people want to compete, we're ready for it. We think we can compete with the best.”
He has a lot to say. Kind of like Commander McBragg. But let me tell you something McMahon, this stock is going to go up to 145, and if I’m wrong I’m going to take out my Sunoco card and double my bet, Bet Bet BET BET!!!
I am HUGE!
$$$MR. MARKET$$$
Let me know if you liked this write up.
__________________
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
That’s insane. That’s absurd. That’s real money. Over the same period, the S & Peee 500 only made 4.2%. Which would you rather have…16.5% or 4.2%. You sees, I am superior to the market. I have 13 consecutive profitable trades of 15% or better…they just keep coming and coming over and over red rover red rover.
Can you do that? You? YOU?? YOU???? Did you buy any PRAA? You? YOU??? YOU??!! If you bought it when I did, you’d be all happy now. If you’re all happy now, I hope to can take the time to buy a super bowl raffle ticket from www.dereksdreams.com or if you can’t do that, tell a friend about www.mrmarketishuge.com
If you can’t do that, at least you can tell me you like getting these emails…cuz if you don’t I won’t send you any more picks.
I am HUGE!!!
Bring me your finest meats and cheeses!
$$$MR. MARKET$$$
================================================== ================================================== =============================
03-16-2013, 04:09 PM
mrmarket
Administrator
Join Date: Sep 2003
Posts: 4,334
PRAA ==> The Riverwalk Winner
Sometimes the Titans go to the casino and they get all hammerhead sharked and head for the high roller pit. You know when you’re at the blackjack table and the Cognac and Coke is flowing and then it’s followed by the Johnny Walker Blue – you just can’t lose. CAN’T LOSE. You start stacking up the black chips, then the purples ones. It gets ridiculous, the eye in the sky comes over and the pit boss says “I’m very happy for you.”
Then you have to take a break eat some noodles and you have to siss. So you head to the batcave in the high roller pit and the guy who used it before you has already sissed all over the seat. So you think, “Most excellent”
Anyway you head back to the table and start playing again, but something is different. Your friend, “The Cooler” walks up behind you and starts saying, “Hey what’s going on, you excellent guys are losing all your quatloops”.
So you bet big to win big and then when you start to lose you bet even more to punish yourself. Pretty soon all your quatloops are gone.
Have no fear, you reach into your wallet and pull out your Sunoco card, which gives you $4000 of cash credit. You head over to the casino cage and take out more monies. You are happy to sign the credit voucher for 20% fees…hey you’re gonna win it all back in no time.
You get excellent cards. Double down, split but the dealer doesn’t bust. The dealer keeps pulling 21’s and pretty soon all of your quatloops are all gone again. Now you have to get up and do the walk of shame back to your hotel room.
You wake up with a hangover and no monies for breakfast. Oh shizzle…what about that credit card bill??? Nothing to do now but pray…or better yet. Just PRAA!
On Friday I bought stock in PRAA (Portfolio Recovery Associates) at 125.04. I will sell it in 4 to 6 weeks at 145.05. Here’s why I like PRAA
First of all, look at the chart:
This stock is up 78% in the last 52 weeks and its PE is only 17. Lots of room to run and boy is it ever running. The really good news is that the forward PE is only 12, which means unless the stock price of PRAA continues to climb, this stock will get cheaper and cheaper on a valuation basis. The stock has to go up.
How does this company make money? Well you owe the bank the $4000 you borrowed with your credit card at the casino. You are all faceful so you don’t want to pay it back. Now the bank gets all nervous because they don’t think they are going to get their money back so they start whacking you with late fees and finance charges. You start to think that everything is wrecked. That’s when PRAA steps in. They offer to buy the debt from the bank for you. They pay the bank $1000 and say take it or leave it. The bank tanks it. Then PRAA gets with you and works out a favorable repayment plan that you can live with, so they eventually get their money back and then some. When payment plans are reasonable, they provide a mechanism for customers to eliminate debt as well as a low-cost recurring cash collection stream for PRAA. Everybody’s happy.
Portfolio Recovery Associates, Inc., a financial and business service company, engages in the purchase, collection, and management of portfolios of defaulted consumer receivables in the United States and the United Kingdom. It detects, collects, and processes unpaid and normal-course accounts receivables owed primarily to credit grantors, governments, retailers, and others. The company also acquires receivables of Visa and MasterCard credit cards, private label and other credit cards, installment loans, lines of credit, bankrupt accounts, deficiency balances of various types, legal judgments, and trade payables from various debt owners, including banks, credit unions, consumer finance companies, telecommunication providers, retailers, utilities, insurance companies, medical groups, hospitals, auto finance companies, and other debt buyers. In addition, it provides fee-based services comprising vehicle location, skip tracing, and collateral recovery services for auto lenders, governments, and law enforcement; revenue administration, audit, and debt discovery/recovery services for local government entities; and class action claims settlement recovery and related payment processing services. The company was founded in 1996 and is headquartered in Norfolk, Virginia.
Portfolio Recovery has quickly become one of the most profitable players in the industry. How do they do it? They are data driven & analytical. They use actuarial science to properly value and liquidate distressed consumer debt. They are good at locating missing collateral. They are also good at cleaning up the sloppy mess left over by bad accounting and can Identify missing revenues for government and businesses. They are like really good cleaning ladies. They find your wife’s missing earrings.
Over the past ten years, the company has grown revenues by 26.7% annually through an adherence to a code of ethics and a conservative management of its balance sheet. In 2012, Portfolio Recovery finally took its business model into international waters with the acquisition of Mackenzie Hall, a U.K.-based debt recovery company.
Portfolio Recovery prefers the bankruptcy market segment (hence their company name), which accounted for almost half of its portfolio acquisitions during 2012. While bankruptcy-related receivables have a higher purchase price compared to defaulted consumer debt, they require less manpower through the resolution process, leading to a higher profit margin. They are buying the stuff at pennies on the dollar, collect a portion of it and make their money that way.
Tracking down debtors in default can be tedious and costly for small companies. However, the large firms have the resources to scientifically calculate the odds of repayment and leverage their expertise with the legal system. PRAA does quantitative analysis on human behavior. They know who is likely to permanently default and who is just temporarily up to their ears but is willing to make amends.
Portfolio Recovery’s return metrics are on 9.79% on assets, 18.56% on equity and 10.28% on investment. Portfolio Recovery is known for good price discipline in buying assets. They know how to drive a hard bargain and really know when you have no other real recourse.
Portfolio Recovery’s bottom-line results have been really looking good over the past few quarters and cash collection revenues have been very strong. Most distressed consumers don’t pay. You have to have experience to know which ones do. Most missing collateral can’t be located but PRAA knows how to find it. Most tax errors won’t be discovered, but PRAA knows how to discover them. Many potential class action claims are not filed or optimized, but PRAA knows when there’s money for the taking. They have the knowledge and the expertise.
$2.7 trillion in U.S. consumer debt outstanding and not all of it is going to get paid back without intervention. The really cool thing is that there are fewer debt buyers as market continues to consolidate. That means there is less competition and, as a result, PRAA pays less for the liabilities that it takes off of others hands.
So what does this all mean when it when the rubber hits the road? When it comes down to the most important detail of all? What about earnings?
For full-year 2012, Portfolio Recovery reported operating income per share of $7.39, which surpassed the ANAL-ysts estimate of $7.29 and prior-year earnings of $5.85.
Portfolio Recovery’s revenue amounted to $592.8 million in 2012, showing a year-over-year increase from $458.9 million. The company’s full-year net income came in at $126.6 million, up 26% from $100.8 million recorded in 2011.
Portfolio Recovery exited 2012 with total assets of $1.29 billion, increasing from $1.07 billion as of Dec 31, 2011. Shareholders’ equity stood at $708.4 million as of 2012-end, compared with $595.5 million as of Dec 31, 2011.
In February, PRAA reported the following 4th quarter and annual results:
Cash collections of $229.2 million, up 27% from the fourth quarter of 2011.
Revenues of $154.3 million, up 31%.
Net income of $35.8 million, up 35%.
Diluted EPS of $2.10, compared with $1.54 a year ago.
Portfolio Recovery Associates has a very low debt (total debt to equity is only 0.37) and the PEG ratio is very low at 0.98. The price to free cash flow for the trailing 12 months is very low at 12.70. The average annual earnings growth for the past 5 years was quite high at 16.16%. ROA is 15% and ROE is 19%.
The cheap valuation, the strong growth prospects, the analyst's recommendation and the impressive 4Q financial results; all these factors make the PRAA stock quite attractive. As credit looses up, which it is, there will be more credit in arrears. This will be the engine that drives more earnings growth for PRAA.
When I was a kid, I used to listen to WEEI SPortsline 59 with Steve Fredericks when I was doing my homework. He used to booze on the air and then Dario would call him up and ask him why he never talked about Roxbury Latin sports. Now I don’t know if this guy is related, but Steve Frederickson is the boss of PRAA and here’s what he had to say:
"PRA again reported record operating results in the fourth quarter and for full year 2012, continuing a trend of strong year-over-year growth," said Steve Fredrickson, chairman, president and chief executive officer, PRA.
"Our financial results were led by increases in cash collections from our receivables portfolios. Cash collections were $908.7 million in 2012, up 29% over 2011. In 2012, we received a record 8 million payments on our debt portfolios. This includes growth in the number of recurring payment plans from customers to eliminate their debt, which provides a low-cost, recurring revenue stream for PRA. This record level of payments places PRA in an excellent position to continue to prosper in 2013 and beyond," Fredrickson said.
“Our results once again demonstrated the strength of PRA's business model focused on diverse revenue and earnings from our bankruptcy business, our core debt purchase and collections operations and our business in government service subsidiaries. Today PRA is in an excellent position to continue to grow and prosper during 2012 and beyond. Let me take you through highlights of
our record Q4 and full year results.
Return on equity of 20.6% exceeded our 20% benchmark in Q4. For full year 2012, I'm pleased to report that return on equity rose to 19.6% from 18.5% in 2011. In Q4 we acquired $1.9 billion in face value of finance receivables for a total purchase price of $199.1 million including $69 million purchased from NCM. These receivables were purchased at 104 defaulted debt portfolios from 19 different sellers. Pricing remained very competitive in Q4 as it did throughout all of 2012.
For full year 2012, total portfolio purchases were a record $538.5 million with a total face value of $6.2 billion. Our expanded focus on legal collections from customers who can but won’t pay their debt continued to produce strong results. Legal collections totaled $65.5 million in Q4, up 49% over the fourth quarter of 2011.
Our bankruptcy business continued to grow and comprised 40% of our total cash collections in the fourth quarter. In Q4 collections from purchased bankruptcy portfolios totaled $91.1 million, a 21% increase from the fourth quarter 2011.
Having now the expertise and the data set that we've obtained from the employee group and from the assets that we bought in that deal, we can underwrite these secured bankruptcy assets with a much higher degree of confidence than we have been able to in the past. And as a result, we're competitive in that market and have been able to do some additional buying.
I would say what we saw in Q4 is to a degree continuing in Q1, and it's really two-fold. Number one, we're seeing decent flow of portfolios both in terms of resale and direct from issuer. But this phenomenon of a consolidation in the industry is real and is continuing. And as a result, we have seen our win rate move up slightly, and that's having an impact on the amount of money that we deploy in a quarter.
We think that we're very, very good underwriters as demonstrated by the track record that we've built over the last eight years or so in the bankruptcy market. And we think that our cost to administer these claims is as low as it gets. I mean we are really proud of the engine that we've built here. And so if people want to compete, we're ready for it. We think we can compete with the best.”
He has a lot to say. Kind of like Commander McBragg. But let me tell you something McMahon, this stock is going to go up to 145, and if I’m wrong I’m going to take out my Sunoco card and double my bet, Bet Bet BET BET!!!
I am HUGE!
$$$MR. MARKET$$$
Let me know if you liked this write up.
__________________
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
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