Thesis
The other day we wrote about a private prison stock and suggested that sector may contain the most hated and distasteful type of investable companies. We spoke too soon. That honor may actually go to debt collection companies. Can you think of anyone who likes what debt collectors do, other than investors? Neither can we.
That naturally makes them stocks worth looking at, because the market almost always tends to undervalue them. They are also underfollowed, smaller in market cap, and have fantastic cash flow. All of that adds up to an attractive investment.