Opinion on  Asta Funding Inc. (ASFI)     Sector: Financial  >  Industry: Misc. Financial Services
This is an attempt to collect a debt

The CEO chalked this up to trouble collecting.  That's to be expected during a recession.  The stock is now trading at a 52-week low.  I'm still like this company and would pick up additional shares.  Things are bad, but a P/E of 2 is ridiculous. 
   Tbere is cause for concern though.  The debt-to-equity ratio is atrocious(1.29), but that is actually on the low side for the industry.  The margins are enormous if they can find a way to collect.  Failing that, the company must be able to find new sources of cash in order to make it through the hard times ahead.  Maybe the Stern family can keep it afloat.  Maybe not.  The insiders own over a quarter of the company stock, so they have every incentive to make things work. 

ASFI 's business contracted across the board. This is not necessarily a bad thing.  They've been paying down debt and being very picky about the debt they buy.  This stock is a good bellweather for how the economy is going.  These guys are vultures and if the carrion doesn't look all that great to them,that should give all of us pause.  Were there any bright spots?  Yes.  Shareholder equity increased a bit. 

ASFI is trading at the following multiples:

P/E: 1.68
P/S: 0.25
P/B: 0.14
P/CF: 1.59
P/FCF: 0.57

  Does this company deserve to be cheap?  Yes. They are in danger fo being delisted. It has a crushing debt load.  Institutions have abandoned the stock. They are trying to collect debts in a bad economy. 
  Don't think  I'm not eyeing ECPG.