The bear is still chasing the stocks of companies who buy debt and attempt to collect. In fact, the bear is going to be around until the negative effects of high energy prices and rising interest rates dissipate.

These two issues are the reason the reported collection levels for the second quarter were lower than analysts expected. Slowing collections are believed to be part of the reason NCO Group is going private. The merger offer is $27.50 a share, recently the stock was selling on NASDAQ for $26.

Encore, another debt buyer is exploring ways to unlock value, could also go private. If stock prices remain low, the pressure will be on for other companies to go private again, or by take-over targets. Asset Acceptance is a third company that may leave the public arena.

All companies face the rising price of debt portfolios from other public companies and debt buying organizations backed by private investor and large fund groups. As the cost of buying debt increases and the ability to collect from cash strapped debtors decreases, earnings will continue to fall.

Encores earnings are down 7% year over year. NCO Group reported 31 cents a share net income, down from 42 cents last year. The only real exception was Portfolio Recovery which grew its earnings 23 percent year over year.

If you are holding onto shares of a debt buyer, you have two choices – hang on and hope for someone who wants to take the company private, or give the stock to a charitable organization and write it off your taxes as a worthwhile donation.