positive outlook, page-20

RAB,

The biggest issue the debt management market has is a simple concept of critical mass. You buy debt, you hire staff to recover that debt. The debt gets recovered, you either need to buy more debt or loose staff.

At some point you will reach a time when the volume you buy is equal to the volume of debt being closed as either paid or no longer economical to recover. Once this point is reached you can not grow any further without greater capital outlay.

As credit corp have significantly slowed acquisitions, they should now be closing more work than they are acquiring, therefor they should be making staff redundant.

Based on their financial report released in September, they should have about 250 operational staff. I believe they now have over 400. Compare the revenue per staff member now to 2005 or 2006, there's a pretty big discrepancy.

Essentially its a solid business process, i believe their model right now needs to be adjusted for the current climate and lacks the capacity to dynamically respond to changes in the market place, which in banking right now is fairly dynamic.

That said, i stand by my suggestion that this company should be between $2 and $3 so a great time to buy or hold if you currently have it.