Debt collector Portfolio Recovery Associates (PRAA)
had to deal with multiple headwinds in the first quarter of 2014. Many
of these were "self-inflicted" with the goal of greater long-term growth
and profitability, but it is nevertheless worth remembering that this
quarter's results aren't really reflective of the long-term story.
Conditions remain challenging in the U.S. from a supply standpoint, but
the company continues to do well with its collection efforts, and the
acquisition of Aktiv holds the potential to be a transformative deal.
Earnings momentum may be a little weaker this year, but there still
appears to be solid long-term value in the shares.
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Portfolio Recovery Grinding Through A Lull
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