Primus Guaranty (PRS) Stock Report
June 18th, 2008 by 
James Cullen
I’m using some fancy new technology to embed the PDFs in the webpage for (hopefully) better readability on my stock reports. Your feedback is always appreciated.
Pay particular attention to the foreword, as well as to the explanation of the GAAP rules underlying derivatives accounting. I think the market is ignoring Primus’ economic results, namely because you have to dig to find them, and once the marks begin to reverse - something that should occur next quarter - the company could start reporting a string of “great” numbers. Regardless of the marks, the cash flows are consistent and relatively easy to model out, and they are what will matter for the future of this company… but I discuss all of this more in-depth below.
Also see the notes from my conversation with the company.
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Disclosure: As I make clear in the stock report, I own shares of PRS.
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June 20th, 2008 at 10:45 am
James,
Good job. Same things I pointed out my analysis a month ago. I think your fair value estimate is probably good if they don’t get hit with credit losses left and right…
I also agree with you that the spread tightening eventually needs to happen for the market to recognize the value inherent in the company. Luckily, the company doesn’t need to grow at all for the investment to be veyr profitable. Any growth is icing on the cake.
June 30th, 2008 at 9:05 am
[...] Cullen presents Primus Guaranty (PRS) Stock Report posted at College Analysts.jeff Anello might be interested in [...]
July 16th, 2008 at 9:21 pm
If you think PRS is a great deal, you should check out their exchange traded debt, ticker symbol PRD.
July 16th, 2008 at 11:26 pm
Been there, done that - gotta have it with a 25% yield. Love the potential of the common, but I love cash too.
March 1st, 2009 at 10:54 am
[...] Primus Guaranty (PRS) Stock ReportI’m using some fancy new technology to embed the PDFs in the webpage for (hopefully) better readability on my stock reports. Your feedback is always appreciated. [...]
March 12th, 2009 at 2:18 am
[...] Primus Guaranty (PRS) Stock ReportI’m using some fancy new technology to embed the PDFs in the webpage for (hopefully) better readability on my stock reports. Your feedback is always appreciated. [...]
March 28th, 2009 at 2:02 am
[...] Primus Guaranty (PRS) Stock ReportI’m using some fancy new technology to embed the PDFs in the webpage for (hopefully) better readability on my stock reports. Your feedback is always appreciated. [...]
April 2nd, 2009 at 7:03 pm
[...] Primus Guaranty (PRS) Stock ReportI’m using some fancy new technology to embed the PDFs in the webpage for (hopefully) better readability on my stock reports. Your feedback is always appreciated. [...]