Providing debt recovery solutions may not be a glamorous business, but one look at the excellent stock market returns of some of these firms may just tempt you. Encore Capital Group (ECPG) has risen by 250%, whilst the S&P 500 has just risen by a pitiful 21%. Looking at this meteoric rise, you may be forgiven that a correction is due for this stock; however, a closer inspection of the valuations and growth prospects may suggest that this stock has much further to go.
How does the debt recovery industry operate?
Debt recovery firms such as Encore Capital Group purchase portfolios of primarily charged-off credit card debt, defaulted consumer loans, and receivables...
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