The silly sell-off on Friday prompted me to relieve my portfolio of some of its cash and see if I could pick up some bargains. I've been eying ASFI for quite a while but hadn't gotten around to doing a formal analysis and price target for the stock. I'm bullish on credit collection as a whole in light of expanding consumer debt. ASFI has kept their debt in check and has ample access to credit to take advantage of future declining debt prices. Furthermore they've maintained their margins and have a good solid history of stability and profitability. Insider ownership and institutional ownership are both favorable as well.
My target price for this stock is $44-$48 (it's currently trading at $33.78) and I view that as conservative (I used consensus estimates for FY EPS with a small P/E adjustment to bring it in line with the industry). I see this as a welcome hedge against future economic downswing as well, which makes it a perfect fit for my portfolio.
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saw your post regarding ASFI over on my blog. I think you got a good entry on Fri. I guess there's concern weighing on these type companies regarding possible recession and what happens if foreclosures go ballistic, but overall seems like a position worth having to me.
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