What’s Bad for this Economy is Good for this Company?
One of the problems with many companies today is that their business model has been broken. No one is quite sure how the Goldman Sachs’s of the world are going to return to their previous sky high profit (and bonus pool…) with the new era of increased regulation and oversight. And I have frankly still not heard a convincing argument for the viability of the large car manufacturers or their suppliers. Even the proverbial king of American capitalism, General Electric, appears to only be able to come up with half-hearted responses where their business model of the modern conglomerate is called into question. All of this could make even the most confident CEO question his or her own business model, unless of course you see no end in sight for the demand of a product you sell. This is exactly the situation that Portfolio Recovery Associates finds itself in. Yahoo finance summarizes their business as follows,