RCVA is a little known company in the same field as Astra Funding.
UPDATE TO RECENT MAJOR NEWS
Receivable Acquisition & management Corp.’s new partnership with California Credit Union League already paying off.
New York, NY Receivable Acquisition & Management Corporation (OTCBB: RCVA) recently announced a new partnership with the California Credit Union League (CCUL). CCUL provided products and services to credit unions in California and Nevada. Under the partnership, CCUL provides promotion, marketing and selling support to Receivable Acquisition & Management Corporation to create a reliable channel to sell charged-off, non-performing and distressed receivables. This partnership has already significantly increased the flow of charged of portfolios available to purchase by RCVA, which give it an added advantage over it competitors.
The agreement covers 200 credit unions in California and Nevada with over $6.5 Billion in assets with more than 10 Million members. RCVA expects annual purchases of at least $50,000,000 from this source.
Receivable Acquisition & Management Corp.
Exchange and Symbol: OTCBB: RCVA
Shares outstanding: 17,808,917
Float (Approximate): 2,266,664
Market Cap: $4,630,318
Recent bid price: $0.26
Target Price: $2.50
Industry: Credit Services
Web site: ramcoglobal.com
Unprecedented $2.2 Trillion Consumer Debt and
Soaring Charge-offs Creates Rapid Growth for
Receivable Acquisition and Management Corp.
The amount of money American consumers owe, according to the U.S. Federal Reserve, has risen to the unprecedented level of $2.2 trillion in March of 2006. As this debt grows, so too have delinquent and charged-off consumer debts by businesses, banks and other lending institutions that provide consumers with credit and loans. Faced with a growing number of sub-performing and non-performing receivables. They often limit their losses and obtain cash by selling these portfolios for mere pennies on the dollar to companies, such as Receivable Acquisition and Management Corp., (OTCBB: RCVA) which may recover dimes on the dollar.
Receivable Acquisition & Management Corporation (OTC:RCVA.OB) specializes in the acquisition and liquidation of these performing, sub-performing and non-performing receivables in the U.S. and abroad. This may not sound like a sexy high tech stock, unless you define sexy as a solid coupled with the rare opportunity for exponential growth and share price appreciation by getting in on a ground floor opportunity – well before the Wall Streets pros find it.
Look at RCVA.OB and how others in its business have grown:
Receivable Acquisition and Management Corp. (OTC:RCVA.OB), although only two years old, is already generating income by utilizing a business strategy that it has even enhanced and has propelled similar companies from where RCVA is now to enormous growth.
RCVA recent share price: $0.26 a share
Comparable companies:
-- Encore Capital Group Inc. (ECPG) was around $0.50 in January 2002 and its recent share price, even after splits, is $11.73
-- Portfolio Recovery Associates Inc. (PRAA) recent price $45.99
-- ASTA Funding Group (ASFI) recent price $35.05
-- NCO Group Inc. (NCOG) recent price $25.73
-- Asset Acceptance Capital Corp. (AACC) recent price $19.44
RCVA with a recent share price of $0.26 may have a superior business model than its competitors. Here’s why:
* RCVA is focused on becoming a dominant player in two of the industry’s hottest and best-performing sectors: student loans and medical services; rather than compete in the high-priced consumer credit card portfolio sector, where pricing structures have soared from 4 cents to 11 cents on the dollar in recent years.
* RCVA, with a new Joint Venture with a multi-billion dollar fund, will be able to scale up its purchases and compete for larger transactions requiring $5 million to $25 million in investment.
* RCVA is generating increasing finance income for the quarter ending March 31, 2006, up 22 percent from the same quarter in 2005. Its general income for the quarter is $170,749, up from $120,245 in the previous quarter, and $115,200 for the same quarter in 2005. With Portfolio’s held as of 3/31/06 RCVA estimates remaining collections of $2,013,000.
* RCVA’s partnership with a major alternative student loan provider to acquire alternative loans below FICO of 650. Projected first year volume of $30 Million. First sale expected in 3rd Qtr of 2006.
*RCVA partnership with Meridian Healthcare Finance providing cross marketing and lending in healthcare receivables. Lending to small and midsize healthcare companies, purchase of wharehoused personal injury & workers comp receivables.
* RCVA out-sources debt recovery through carefully selected recovery partners. This enables the company to work with several specialist collection agencies in the U.S. and the UK, as well national law firms.
* RCVA has sufficient cash flow to meet its operating expenses, acquire portfolios and rapidly grow.
Investment summation:
Over the past three years RCVA has built the infrastructure and partnerships to identify and locate strategic charged off debt portfolios and has secured the investment capital to make such acquisitions. This company will experience significant growth over the next few years. |
