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(OTCBB: PALR) Makes its Way into a Highly Lucrative Industry

From: Wall Street Reports
Subject: (OTCBB: PALR) Makes its Way into a Highly Lucrative Industry
Date: Thu, 07 Mar 2002 21:09:41 -0500


Wall Street Reports
(OTCBB: PALR) Makes its Way into a Highly Lucrative Industry

Tonight's Featured Company

Current Stock Price

52 Week Trading Range
Palomar Enterprises (OTCBB: PALR)

10 Cents

0.08 - $2.75 (Low/High)

Does Anyone Owe YOU Money? 

Tonight 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 reporting  agencies.  According to the Nilson Report, a leading authority on payment systems,  this is almost double the $73 billion placed for collection in 1990. 

PALR Investment Highlights

1.  A Rapidly Growing Industry    The debt collection industry almost  
    doubled from 1990 to 2000 going from $73 billion to $135 billion

2.  The Right Partner    PALR's joint venture partner "People Locator" 
     has a successful operating history of more than 24 years.

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%

Top Notch Management    PALR's CEO (Terry Nield) founded 
     Clearly Canadian Beverage Corp. and has taken part in various 
     other successful business ventures. 

Palomar (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. 

About 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.  In fact…

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

Combined revenues 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.

People Locator: A Strategic Partner

With 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.

People Locator 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.

PALR’s strategic relationship with People Locator Inc. will give the company access to existing portfolios of debt.

Regency 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?

Regency 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 million

In addition, 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. 

Profitability, Strong Management

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, namely:

Terry W. Neild (CEO) a professional account who founded Clearly Canadian Beverage and other successful public companies;

Arnold 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.

A Final Word 

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 to unfold.

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Information within this email contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements."

Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "projects", "foresee", “expects’”, “will,”  “anticipates,” “estimates,” “believes,” "understands" or that by statements indicating certain actions “may,” “could,” or “might” occur.  All information provided within this email pertaining to investing, stocks, securities must be understood as information provided and not investment advice. Wall Street Reports advises all readers and subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured within this email.  None of the material within this report shall be construed as any kind of investment advice. 

In compliance with the Securities Act of 1933, Section17(b), Wall Street Reports  discloses the receipt of eighty thousand unrestricted shares of PALR from a third party for the publication of this report and additional services related to PALR. Be aware of an inherent conflict of interest resulting from our intent to profit from the sale of these shares.  Shares may be liquidated at any time, even after we have made positive statements regarding the above company. All factual information in this report was gathered from public sources, including but not limited to SEC filings, Company Press Releases, and Market Guide.  Wall Street Reports believes this information to be reliable but can make no guarantee as to its accuracy or completeness. Use of the material within this email constitutes your acceptance of these terms.

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