How to Play Property Repossessions (ECPG, PRAA, ASFI)

by: Roger Nusbaum

Roger Nusbaum (wish list) submits: I'm reading Barron's right now and Stephanie Pomboy got a mention from Alan Abelson. She is a buyer of stocks that specialize in repossession. There are three mentioned:

Encore Capital (ticker: ECPG), Portfolio Recovery Associates (NASDAQ:PRAA) and Asta Funding (ASFI.)

The idea is that many adjustable rate mortgages will be moving higher and Ms. Pomboy says a lot of sub prime borrowers will be hurt.

The idea is interesting. I don't know anything about these stocks but I listen to what Ms. Pomboy has to say.


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