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Asta Funding Inc. Message Board

  • joseph.pepper joseph.pepper Dec 13, 2011 11:24 AM Flag

    Hope not same old story

    Lets all hope its not the same old story about how much cash they have and doing little with it for over a year. Just take a quick look at PRAA and ECPG and what they have been doing. Asta needs a big credit line and buy receivables and the cash on hand should go back to shareholders in a special dividend and an increased dividend. With interest rates so low, borrowing money is cheap. Can they get a credit line? A very good question to ask on the call. Also, with collections on a steady decline its time to give back to the shareholders. The companies that service their own receivables have done so much better than the outsoucing companies. Its always better to control your own destiny than putting it in the hands of others. The stock prices and credit lines show you that the banks and the markets like the companies that collect their receivables with a big staff that makes them money day in and day out.

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    • Did not see anything about shares being repurchased or the Company getting a credit line. Now is the time to borrow with rates so low, look at the other debt buyers, making a killing on the spreads over the past 3 years. Same old, same old, stock price most likely reflects what management is doing or in this case not doing. What will they announce next, how come they are not buying stock at these levels? Very good question for all.


      • 2 Replies to joseph.pepper
      • Seems to me, this company is moving towards an insider buyout. They obviously have no concern about please the Street. Instead, they are hoarding cash and driving the stock well below book value.

      • I am surprised we have stayed on the same path this long. There is much to be done, but still I don't see how this company is priced so low. I guess the markets hate the same boring news.

        If the company paid off all the debt and wrote the Seneca portfolio down to $0, the book value would still be $6.40 per share.

        Then you could add the net collections of $13 million and interest expense of $3 million to the bottom line and this company would be generating a net income of $26.5 million in 2011. This would be $1.79 per share in income.
        Anyway, this company seems to be slowly disolving and not purchasing anything... Why are they hording cash?? There has got to be something better they could do with that money. I hope they aren't planning on making another huge portfolio purchase (See Seneca)

    • Did they buy any shares in the 4th quarter?

8.900.00(0.00%)Aug 28 4:00 PMEDT