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PRAA Stock Price Falling After FTC Report

|Includes: PRA Group, Inc. (PRAA)

- On July 12, FTC Issues Report on Reforming Debt Collection Litigation and Arbitration; Recommends Steps to Protect Consumers and Repair a Broken System (
Legislators pledge to fix state's 'broken' debt collection system ( in Minnesota. Massachusetts Senate passes debt collection measure ( More and more states are likely to introduce legislation giving consumers more protection against debt collectors.
-The uncertainty and likely negative environment for Portfolio Recovery Associates Inc. (NASDAQ:PRAA) is causing it's stock price to drop, and I believe it will continue to do so until support area of around $50. Unfortunately, the spread on options prices in PRAA is too wide and illiquid to put on a meaningful position. I would recommend looking for opportunities to short the stock on any strength.

Disclosure: No positions