Current Stock Price
52 Week Trading Range
Enterprises (OTCBB: PALR)
0.08 - $2.75 (Low/High)
Does Anyone Owe YOU
we present to you a company entering a highly profitable and rapidly
field. The debt collection
industry is one that will grow in the face of economic difficulty.
As the economy worsens, more and more companies will see rising
levels of debt. Many of
these will attempt to avoid repaying their debts.
As a result, this increases the need for debt collection
agencies. An estimated
$135 billion in delinquent consumer debt placed for collection in 2000
is being serviced by over 6,500 collection agencies and 1,600 credit
According to the Nilson Report, a leading authority on payment systems,
this is almost double the $73 billion placed for collection in
Rapidly Growing Industry The debt
collection industry almost
doubled from 1990 to 2000 going from $73
billion to $135 billion
Right Partner PALR's joint venture partner
has a successful operating history of more than
3. High Profit Margins
Last year a predecessor company of PALR
earned $137 million on revenues of $206
million - a net profit
margin of 67%
PALR's CEO (Terry Nield) founded
Clearly Canadian Beverage Corp. and has taken
part in various
other successful business ventures.
(OTCBB: PALR) and People Locator intend to participate in a joint
venture in order to establish an integrated debt acquisition and
collection company. The
venture will be named Regency Horizon.
the Debt Collection Industry
Debt Collecting is
all about locating the debtor. Debtors move leaving no forwarding address on financial
obligations, expecting the statue of limitations to expire.
The growth of the debt collection industry has been
substantial, especially in the face of the recent economic decline.
The debt collection
industry almost doubled from 1990 to 2000 going from $73 billion
to $135 billion.
Fueled by the
ever-increasing amount of consumer and commercial debt; the growing
use of outsourcing accounts receivable management and other services
by credit grantors; and the sale of performing and non-performing
debt, collection agency revenues have reached an all time high.
of the top ten companies in this field increased dramatically from $910
million in 1995, to $2.5 billion in 2000.
Credit cards of all
kinds will generate charge volume of $516.11 billion in the U.S.
this year. Of that amount, $261.66 billion (51%) will become
revolving debt by year-end. With 111.3 million Americans
maintaining 5.7 credit-card accounts of which 3.2 were active (used at
least once) during the year, there are 354.6 million active accounts
with average outstanding balances of $738 each. Outstanding
balances per cardholder this year will average $2,793.
Locator: A Strategic Partner
the continuation of the current recession, more and more debtors are
moving and ignoring their financial obligations. Understandably, there
doesn't seem to be an end to this ever-growing problem in the near
future. Companies, including collection agencies, are downsizing or
filing bankruptcy. The industry is deeply in need of real solutions,
not automated searches.
fits perfectly into the picture.
People Locator has a lengthy history of locating the debtor’s
current address, plus their source of income. They locate the missing
debtors using unique and proprietary methods.
With a history of more
than 24 years, People Locator has been successful in locating up
to 75% of its clients. This
has propelled People Locator to its current status as one of the
nation’s leading debt locator firms.
relationship with People Locator Inc. will give the company access to
existing portfolios of debt.
Horizon: A Sensible Synergy
The joint venture
between PALR and People Locator will be known as Regency
Horizon. A combination of the expertise of both companies will
position Regency as a unique and innovative debt collection agency. How will this work?
will purchase debt from credit companies for pennies on the dollar and
will collect on the full amount owed to the creditor.
For example, if Regency purchased $10 million dollars worth of
debt for $200,000, then anything collected over $200,000.00 is pure
profit for Regency (in this case, up to $9.8 million).
With the success rate of People Locator and the ingenuity of
Regency they expect to have returns somewhere around 1,000% or $2.0
Regency has exclusive or near-exclusive “forward flow”
agreements to buy charge-offs at a predetermined price from 15 of
the top 25 bank credit-card issuers, locking out competitors for
one to five years. This
ensures a constant flow of “investors” for Regency.
Regency, once they
have located the debtor, can enter into financial arrangements with
the debtor to recover the full or partial debt over a period time.
Regency will provide flexible terms for the repayment ranging
from days, months or even over years depending on the debtor’s
ability to pay.
With the revenue
produced by Regency they can purchase more debt, collect and
purchase further debt, and aggressively market new products and
services to these account debtors and convert these non-performing
receivables into performing receivables.
So far, the
emerging debt acquisition industry has proven very profitable. Last
year a predecessor company of Regency Financial earned $137 million
on revenues of $206 million. That's a net margin of 67%
made possible because the company sells loan pool for far more than it
pays. There is still plenty of business to tap as issuers enjoy the
advantage of instant cash and reduced collection expenses.
PALR brings a strong management team to operate this new venture,
W. Neild (CEO) a professional account who founded Clearly Canadian
Beverage and other successful public companies;
Wenzloff (President & COO) with a strong banking background,
Wenzloff has recently worked with Mexico’s Bancomer, Mexico’s 2nd
largest bank with 7 divisions, 50 regions and 800 branches
managing the credit card division and has been a Project
Manager specializing in Operations & Risk Management for a
number of American banks;
Carl D. MacBride, founder & CEO of People Locator, Inc.
which has been in business for 24 years finding debtors for most of
the large American banks, and is recognized nationally as one of
the leading firms in its field.
With impressive credentials, the growing role of debt
collection agencies, and the backing of a strong and seasoned
management team, PALR is positioned to enjoy the benefits
of a rapidly growing, profitable industry.
At its current price of just 10 cents, PALR presents
tremendous upside potential for the speculative investor.
Look for various
exciting announcements within the near future as this story continues