Seeking Alpha
Editor's notes: JGW is the dominant player in its niche, has limited risk, and has room to grow for decades, yet trades far below industry multiples. Stock has more than 100% upside.

JGWPT Holdings (JGW) is a pretty unique financial company with a novel niche area that it dominates; the structured settlement and defined cash flows business. The firm owns the two largest brands in structured settlements (JG Wentworth and Peachtree) as well as an enormously valuable database of customers that it uses to drive transactions. As the premier player in the business, JGW is uniquely positioned to capture large amounts of loan business (especially from nonprime customers) without significant regulatory or credit risk.

My Thesis

JGW also has the opportunity to move into the factoring space (particularly receivables) without incurring significant additional costs, thus increasing its efficiency and earnings dramatically. Further JGW trades at a dirt-cheap multiple (roughly 10X...

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