Anybody remember these guys? They're starting to catch on. . .

Revisiting this trade, looks like both are up around 3 bucks since I picked them a month
ago. Nothing stellar. . . And they've both kinda stalled. I'm still bullish on PRAA and
ASFI, 'cuz we still haven't seen the works tof the foreclosure thing. . . And earlier
this week we had some stock tank on news of auto repos going up. . .

Gawd I feel slimey, but I think PRAA is the one to play here, and go long the stock. It's
a slow mover for now, but could pop. Plenty of time to put it on slowly. . .

OK - I'm out of the PRAA calls at $3.85, for a profit of $3.30 per contract. That pays
the mortgage for the next two months. C00l

PRAA $53.65 and those Sept calls are now suh-weet.
I've still got another day to decide if I'm gonna sell 'em or exercise 'em. PRAA poised
to break out.

ASFI at $38.96.

This is looking like a pretty good call.

Last edited on: 09-19-2007 07:09 pm

Asta Funding's chart is very similar. You may have spotted some value here...

These shorts are obviously getting crushed. Look at this 4 year chart. Actually, from a
long-term technical stance - it looks good. Set a tight-stop on this, you should be
fine.....it's nearing the bottom end of the up-trend.

And hey,

I WOULD NEVER EVER sell some calls against a stock with 45% short interest. I don't want
PRAA coming after me....lol

LOL,

Hey - this debate is the beauty of the market.
Too big of a short interest to get involved on the bearish side...
Stick to your guns - the stock is fairly valued...
Paying 12Cents on the dollar is cheap.

I'm just saying - I would only trade this thing. That's it.

by OptionSlinger - Ignore this user
You can't squeeze blood out of a turnip...
----
These guys are in the business of proving that statement wrong. They're very good at it,
too. They CAN be beaten, but most of the time, they get SOMETHING. Even if it's 20 cents
on the dollar, since they pay on average 12 cents on the dollar for the debt, they make
money. And since there will be SO MUCH for them to buy, it's a buyer's market for them.

Now all that said, I could be wrong. As I said, it's a high-risk play. But I think I'm
right, or I would not make the trade. You are free to take the other side of that trade
and sell those calls. Or buy puts. It's up to you.

Last edited on: 09-16-2007 06:59 pm