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...

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