Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Portfolio Recovery Grinding Through A Lull

Debt collector Portfolio Recovery Associates (NASDAQ:PRAA) had to deal with multiple headwinds in the first quarter of 2014. Many of these were "self-inflicted" with the goal of greater long-term growth and profitability, but it is nevertheless worth remembering that this quarter's results aren't really reflective of the long-term story. Conditions remain challenging in the U.S. from a supply standpoint, but the company continues to do well with its collection efforts, and the acquisition of Aktiv holds the potential to be a transformative deal. Earnings momentum may be a little weaker this year, but there still appears to be solid long-term value in the shares.

Higher Upfront Costs Weigh Down Q1 Results

Portfolio Recovery had telegraphed higher costs last...

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