Anyone think Begbies Traynor, DEBTS.co.uk and Invocas will be amazing investments in a recession?

Question

Anyone have a view on these

I think if we're heading into a recession, owning corporate and personal insolvency companies is the way to go

Answer 1

no. they seem to have had their chances. The brokers have a PTP target of £2.2m and price target of 65p so you might see 50p

As I have said before these companies were good when they quietly arranged IVAs for a few clients. Now it has got well publicised the creditors have got a lot tougher and there is a lot of competition in this sector. Debts.co.uk is apparently the strongest company and now they have repaired their balance sheet and restructures tehey can consolidate weeker rivals. It always seems odd that these small cos. wreck their chances before coming to their senses. Probably down to greedy management rather than incompetence.