How Low Can PRA Group Go?

One of the first lessons he told me was that when I win a big hand, I’m not supposed to cheer. The other guy just lost a lot of money.

It is so hard for imperfect me not to cheer about the plunge in the price of PRAA stock, an indication of the impending doom of the litigious, vexatious scavengers.

Not that I had anything at all to do with PRA’s loss. They did it to themselves.

I have a case against their wholly owned subsidiary, Portfolio Recovery Associates LLC, that can realistically demand a $82M jury verdict. (The LLC lost that much on a similar case but settled while on appeal.)

If the LLC files for bankruptcy, I am out of luck.

My son and I love to talk about poker, but we take breaks to talk about stocks.

I was gloating about the drop in PRAA and my son went into one of his hysterically funny stand-up comedy routines about the absurdity of PRA’s business model. I can’t capture his timing or colorful language, but here is the basics.

Why would I buy stock in a company that doesn’t have any value?

They buy debts that the debtor doesn’t owe, that the debtor can’t pay, or that the debtor won’t pay.

Most of the people who actually owe the money never should have been approved on those loans in the first place.

Then PRA calls the people over and over again. Like the ex who calls begging to get back together, then threatening, then throwing a tantrum on the front lawn of their obsession’s home.

I agree. PRA counts on annoying their victims into paying, extorting money in exchange for peace.

[Weekend Update]

PRAA dropped below Argus’ target on Friday. There must be lots of people out there who agree with me about the value of the company.