Asta Is Really Collecting
yahoo.businessweek.com
Buying distressed debt from credit-card companies and auto dealers may be a stressful business, but not to Gary Stern, CEO of Asta Funding (ASFI ), who pays just pennies on the dollar for such loans. Asta's stock has been on a roll. Since being featured here on May 2, 2005, when it was trading at 20, the stock has soared to 33. Surging revenue growth of 46.5% and a profit leap of 49% in 2005 propelled the stock upward, says Steven DeLaney of Flagstone Securities, who tags the stock a "buy." Despite the sharp rise, Asta remains attractive, he argues. Audrey Snell of ThinkEquity Partners, also a bull on Asta, raised her estimates after the company reported a "very strong" December quarter. In that period, Asta bought $2.1 billion in receivables for just $102.4 million. She lifted her earnings forecast for the year ending Sept. 30, 2006, from $2.60 a share to $2.70. For 2007, she expects $2.86. Ivan Feinseth of securities outfit Matrix USA (MUSA ), who upgraded Asta from "hold" to "buy," says Asta's stock has an intrinsic value of 47. |
