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.
Consumer 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.