There are relatively few businesses that truly thrive in lackluster economies. Most the counter-cyclical businesses that people cite, grocery stores, alcohol manufacturers, and payday loan stores, are more recession resistant than truly counter-cyclical. That's not the case with the collection industry. Collection industry leader Portfolio Recovery Associates (NASDAQ:PRAA) is a good investment choice in this climate. The weakness in the economy assures the firm an ample supply of bad debt to buy, and the slow recovery of jobs, credit, and asset prices allows the firm to work with debtors and get them on a realistic recovery plan to pay off their debts.
Portfolio Recovery Associates purchases and then manages portfolios of defaulted consumer receivables as well as providing...
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