| Stock (Symbol) | Stock Price | |
PRA Group (PRAA) |
$53 |
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| Data is as of | Expected to Report | Sector |
August 31, 2015 |
Nov 9 – Nov 13 |
Finance |
| Sharek’s Take | ||
 PRA Group (PRAA) is the largest truly global acquirer of non-performing loans in the world, it buys bad debt then negotiates with people to settle at a good price for everyone. Last qtr PRAA missed earnings estimates of $115 by 9 cents, and the stock dropped from $64 to $56 on the news. Profit growth was 22% and sales growth was 20% cash collections were up 22% over last yr. — all solid numbers. In the conference call, management reiterated it manages PRAA for the long-term and doesn’t give earnings guidance, and also reminded us its grown revenue and net income in excess of 20% per yr for the past decade. Although its frustrating owning this stock as an investor and not seeing it go up, this “20% grower” sells for just 11 times earnings and has huge upside. If it gets a P/E in the mid-teens next year it could rise 50%. But it may not, you may have to wait. Invest for the long-term. |
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| One-Year Chart | ||
 I’m so frustrated with this stock. PRAA used to get a P/E of 17, and now its 11? So cheap. And profit growth is good too. Head scratcher. |
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| Earnings Table | ||
 Last quarter sales grew 20% and profits jumped 22%.
PRAA missed estimates by 9 cents, and then told analysts it doesn’t give estimates, lol. “You guys guessed to high” Annual Profit Estimates fell a bit and have been back-and-forth all year. Qtrly profit growth looks to continue the current trend. |
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| Fair Value | ||
 PRAA is absurdly inexpensive. Even a P/E of 14 would be a solid gain from here. We have to be patient. |
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| Ten-Year Chart | ||
 I love the long base PRAA has made, if it breaks out to the upside it could be in for a significant move higher. I should probably be buying more here, but I have other stocks I need to invest in. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
20 of 27 |
PRA Group continues to grow at 20% but last qtr’s earnings miss may have spooked some people. To be honest, the bull market was going into a correction at that time and that maybe that caused the stock to drop more than it should have. I feel this stock has great upside for the long-term. PRAA is ranked 20th in the 27 stock Growth Portfolio Power Rankings. It isn’t timely enough for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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