Author Topic: ASFI - Asta Funding  (Read 20451 times)

valuedontlie

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Re: ASFI - Asta Funding
« Reply #30 on: February 14, 2019, 05:30:55 PM »
10-Q filed today:

https://www.sec.gov/Archives/edgar/data/1001258/000143774919002627/asta20181231_10q.htm#balsheet

$0.19/sh in earnings, net cash grew to ~$50m, no new info on future plans...


writser

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Re: ASFI - Asta Funding
« Reply #31 on: February 15, 2019, 12:26:16 AM »
On top of the $50m in level 1 assets there is:

- a note receivable of $3.8m, $0.5m of principal was paid back last quarter.
- a settlement receivable of $2.9m, also returned $0.5m this quarter.
- $8.9m in a personal injury claims portfolio (left from a portfolio which returned $8m in cash last year)
- a consumer receivables portfolio valued by the company at $26m (generated $18m in net collections last year)

For an additional ~$42m in assets that are generating / turning into cash and don't appear overvalued or in need of impairment. Total liabilities: $2m. Net: ~$13.40 / share vs a price of $4.30.

The company paid out a massive $5.30 dividend in 2018 and tendered for a significant amount of shares both in 2016 and in 2017, is debt free, has been profitable for 8 of the past 10 years and trades at a TTM P/E ratio of ~5x (ignoring the Q1 effect of the new tax law) despite all the cash on the balance sheet. Absolutely bonkers in a vacuum.

But of course there is hair unfortunately: management isn't exactly top-notch (understatement), management controls the company so there is a significant risk of a take-under, tender offers were only initiated after being threatened by an activist investor (which is hardly possible anymore) and corporate overhead is somewhere around $8m / year - if you capitalize that there isn't much value left ..
« Last Edit: February 15, 2019, 12:37:56 AM by writser »
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valuedontlie

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Re: ASFI - Asta Funding
« Reply #32 on: February 15, 2019, 10:17:48 AM »
Yes, hard to know what their intentions will be from here... they could easily dividend out the current share price and still have plenty leftover for M&A... could...

writser

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Re: ASFI - Asta Funding
« Reply #33 on: May 13, 2019, 01:53:49 PM »
q2 results press release.

Quote
For the three months ended March 31, 2019, net income was $1.8 million, or $0.27 per diluted share, as compared to net income of $1.0 million, or $0.15 per diluted share for the three months ended March 31, 2018.

Quote
As of March 31, 2019 the Company had approximately $50.1 million in cash and cash equivalents, and securities, $87.5 million in stockholders' equity, and a net book value per share of $13.09.

Looks like a decent quarter at first glance. Still very cheap (at least on a quantitative basis) if you have the stomach for it.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

Foreign Tuffett

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Re: ASFI - Asta Funding
« Reply #34 on: May 14, 2019, 07:05:02 AM »
One positive development that isn't reflected in their financials yet is the payoff of their $3.8M note receivable last month: "On April 15, 2019, the Company received a lump sum payment of $4 million from the buyer, consisting of $3.8 million in principle and $0.2 million in interest income. Effective April 15, 2019, the Note was paid in full"

This continues the ongoing trend of their assets slowly being unwound and turned to cash.

Foreign Tuffett

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Re: ASFI - Asta Funding
« Reply #35 on: May 17, 2019, 04:10:00 PM »
New $10.5M share repurchase authorization. Note that the current market cap is only ~$37.5M.

https://www.sec.gov/Archives/edgar/data/1001258/000143774919010380/ex_145162.htm

Definitely a positive development given that the company continues to trade at a significant discount to its net cash and investments.


tgrafos

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Re: ASFI - Asta Funding
« Reply #36 on: May 18, 2019, 07:49:28 AM »
Not really great news.Stock never trades.If they truly wanted to buy stock they would do a tender.

Tim Eriksen

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Re: ASFI - Asta Funding
« Reply #37 on: May 18, 2019, 10:31:50 AM »
The press release doesn't even make sense.  A 10b5-1 plan cannot be modified or discontinued at any time, that is why they are allowed during blackout periods; they are not at a Company's discretion, but rather based on the predetermined plan that gets executed regardless of general market conditions.   Maybe there is a repurchase authorization and a smaller 10b5-1 plan but that is not what they announced.     
 
Asta Funding, Inc. Adopts Rule 10b5-1 Plan in Conjunction with Share Repurchase Program
ENGLEWOOD CLIFFS, N.J., May 17, 2019 – Asta Funding, Inc. (NASDAQ: ASFI) (the “Company”), a diversified financial services company, today announced that its board of directors has approved the repurchase of up to $10,500,000 of the Company’s common stock. Repurchases will be made from time to time at the Company’s discretion, based on ongoing assessments of the capital needs of the business, general market conditions and the market price of its common stock. The program may be suspended or discontinued at any time.


given2invest

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Re: ASFI - Asta Funding
« Reply #38 on: May 18, 2019, 12:32:05 PM »
10b's can have very specific instructions such as price levels so that might be why it says "up to 10.5". 

TBW

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Re: ASFI - Asta Funding
« Reply #39 on: May 19, 2019, 01:05:57 PM »
Has there been any info on who the 10b plan is for?

I thought this was good news, but didn't really consider the 10b part.

In my mind this is very rational move by management.  If I owned as much of the company as they do I would repurchase as many shares as I could, below the cash value, and then when I do dividend myself the cash I get a much greater proportion of it.

I think the tax cuts have greatly aligned shareholders and management here, this move may be a sign of that.  By that I mean it is much better to receive cash from the company as dividends rather than in income.