Cameron Wright

Two Stocks Poised To Profit From A Debt Collection Boom

doh, beat me to it!

Two Stocks Poised To Profit From A Debt Collection Boom

Have you never heard of AACC or ASFI? PRAA is not the only pure play debt collector! ECPG is cheaper because it resells the debt it buys, a business model that only works in rising debt price environments. It's EPS will fall once they stop doing this.

I agree that I would not buy PRAA at this time, however.

The Short Case On Garmin

Will, where are you getting those R&D numbers from?? I can't find them in the Q or the K.

Here's a link where you talk bullishly about Palm. Now you've changed your tune. I can understand that, nothing wrong with realizing your mistakes, but are you sure you're just not trying to over correct for your past mistakes? Is this the case that now you know the hammer that drove Palm's nail, you're seeing all consumer product companies in terms of a nail? couldn't the same be said for Apple, Nokia, Samsung, etc?

BTW, what happened at thestreet.com/realmone... why'd you leave?

www.thestreet.com/_rms...

"Task welcomed William Gabrielski, research analyst at TheStreet.com and co-author of the Breakout Stocks and Stocks Under Ten newsletters.

...

When Task asked about Palm (PALM), which reports its numbers Thursday, Gabrielski said he is optimistic about the company.

It opened strong today, Gabrielski said, adding that he is confident that Palm's market share will remain steady.

Although there has been a lot of bearish talk about the company, it hasn't shown up in Palm's numbers, he said. Gabrielski believes that the company will report some excellent guidance for its August quarter and for 2007. "

Broadcom Corp. May Be a 'Perfect Payday' Stock

Phil, while I agree with your conclusion that BRCM is likely a good buy at these levels, I don't agree with this statement:

<i>They didn’t steal money, they stole shares of stock. In fact, the shareholders aren't even any more diluted than they would have been if the options had been priced higher.</i>

They did steal money. By pricing options at $10 instead of $20, they stole $10 for every option exercised. I did a quick calculation, and if you assume all options are undervalued by the same $ amount, which is obviously not a correct assumption but about all you can assume based on the information they've given, then $1.5B in extra expense would mean each option granted from 1998 through 2002 was undervalued by about $8.80. This leads to under pricing from anywhere from just under $10 in 1998 to over $25 in 2000. If every one of these options had been exercised, this would lead to over $2.5B in cash that BRCM should have received that it didn't, which is equal to about $5 per share with 500m shares outstanding. Even if you assume that none of the 2000 options are exercised since they were repriced in 2002, it still comes out of just under $4 per share.

Once they give final details, I'll be able to get a more accurate estimate.