Most of the company's revenue comes from their UK operations, however. The U.S. side of the business has become more of a focus for the company over the past 12 months and should add to the company's top and bottom line in the coming years.
MAMS was spun off from its parent company in 2008 during the peak of the financial crisis. Due to the timing of the spinoff it was not just ignored, but completely buried under a torrent of negativity.
Since the spinoff, the company has essentially gone nowhere. This is despite a complete overhaul of management, debt structure and strategic objectives. The management team has taken great strides to reduce the company's debt and increase cash flow. They had a successful rights offering in 2010 that was oversubscribed, allowing the company to pay off debt. Cash flow has been steadily increasing and is projected to continue ramping up as the company moves forward.
From an economic perspective, the company is positioned in the right sector as individuals are increasingly prone to holding onto their cars until the wheels fall off. This is due to the current state of the economy in the U.S. and U.K., where unemployment and underemployment show little signs of dissipation. This causes an increase in automobile maintenance costs to the benefit of companies like MAMS.The company is 40% owned by insiders. It has a very tight float. And on a technical basis is under heavy accumulation over the past several months.
CPSSConsumer Portfolio Services (CPSS) is a company that is involved with subprime borrowers in the automotive industry. As with anything and everything having to do with subprime, the company was almost lost in the financial crisis of 2008. Their access to capital to make the loans needed for them to generate revenue froze up and the company nearly went up in smoke. CPSS deals with consumers who do not have the credit worthiness to purchase automobiles. These consumers require a borrower who is willing to take on the risk of default in exchange for a higher interest rate. CPSS fills that need.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV