Lots of negativity out there surrounding a company that continues to report positive earnings while maintaining great liquidity and trading well below book value (which just jumped above $12 per share btw).
Earnings were boring but fine, and I found most of the conference call Q&A to be reassuring. We'll start to see results of the new venture in the next call, and the management sounded excited at that prospect. I think everyone who's acting like they just threw 21 or 109 million dollars into the trash or onto a roulette table is way off base.
Bottom line: I now consider ASFI to be as undervalued at $7.50 as they were at $6.70 last June.
Solid again. Revenues from Pegasus starting to roll in with no problems. Not as wild and risky as some people were claiming.
Overall revenue approximately flat from a year ago, no longer deteriorating. Great Seneca debt barely matters anymore. Revenue on the zero basis portfolios actually increased. Earnings not a blowout but positive. 116K shares of stock repurchased, still not as much as I would like but it's a start. No reason for this to trade below book value.
Take a look back as I did a few months ago. They made a public announcement creating Asta Commercial and hiring a senior person with many years experience to run it. Asta Commercial was announced to to commercial factoring. Bottom line, after the announcement and the CEO's postive upbeat remarks about this company and business venture we never heard anything else. So what is there track record. Also, too many insider consluting fees paid over the years. I hope Asta performs well but with collections on a steady decline for years now I can't see investors coming into the stock on the hope that this new venture does well.
I would rather own Bank America with a book value of over $20 trading at $8 than ASFI.