Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

JGWPT Holdings Has Massive Potential

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 trailing adjusted...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details