Value Investor Blog

Asta Funding – Part 3

Posted in Application by aaronstackhouse on January 5, 2010

After reviewing Asta Funding’s FY 2009 10-K I wanted to expand on the analysis and update the book value from my previous posts. So I don’t get too repetitive, I recommend reading Part 1 and Part 2 of the Asta Story first for more detail, but here is the two minute summary…

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Asta Funding

Posted in Application, Uncategorized by aaronstackhouse on December 7, 2009

This will be the first of several posts on Asta Funding, Inc.

Asta Funding, Inc is in the business of acquiring, managing, servicing, and recovering portfolios of consumer receivables, including credit card, auto deficiency, and telecom receivables. The company purchases receivables at steep discounts from the face values of the underlying claims (3.4-4.0% of face value over 2004-2008). Typically the receivables have been previously written off by the originator and collections have previously been attempted by one or more parties.

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NNWC Update

Posted in Application, Uncategorized by aaronstackhouse on November 11, 2009

A few months back I posted a list of stocks that were trading below their NNWC value per share (as of 7/17/09). Let’s take a quick look to see how those stocks have performed over the last several months.

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Net-Net Working Capital

Posted in Application by aaronstackhouse on August 26, 2009

Benjamin Graham famously recommended looking at stocks that trade below their net-net working capital (NNWC) value per share (current assets – all liabilities). A lot of modern value investors have talked aboutĀ this metricĀ as a classic example of buying stocks with a large margin of safety, but also as a dated technique for the simple reason that few securities in recent history have met this criteria.

However, with the precipitous decline of stock markets at the end of 2008 many of these opportunities have reemerged, and it is worth taking a look at this strategy.

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