CCP - Credit Corp Group

[bigdog]

The speeding ticket was based on 12 trades for $26,000; the ASX have lost their way, only heaven can help us!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Heaven help us when we watch WOR Worley Parsons crash from $38 to below $16 with NO ASX request for explantion!

SP up 7.5 cents to 55 cents (also high for today)
-- there were 12 trades with volume of 50,198 shares
-- hardly on fire!

Time------ Price Vol.. Value Condition Codes
15:31:53 0.550 9,008 4,954
14:31:12 0.550 992 546
14:29:03 0.540 590 319
14:22:51 0.540 9,410 5,081
14:22:51 0.535 3,590 1,921 XT
11:02:38 0.510 1,808 922
11:02:08 0.500 1,000 500
10:45:06 0.510 15,000 7,650
10:43:49 0.510 5,192 2,648 XT
10:42:47 0.500 2,400 1,200 XT
10:42:47 0.500 900 450 XT
10:42:47 0.50 308 154 XT
---------------- 50,198 $26,345

Speeding ticket ahead of report tomorrow
http://www.asx.com.au/asxpdf/20090216/pdf/31g2ckv6rx5ft9.pdf

Share Price Movement
Monday 16 Feb 2009

The Manager Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Share Price Movement

16 February 2009

The Company has noted a 15% increase in its share price today, albeit on very modest volumes.

In response to this increase and in the interest of ensuring that all market participants are fully informed the Company makes the following statements:

1. The Company will release its results for the half year to 31 December 2008 at approximately 9:45am on Tuesday 17 February 2009.

2. Subject to audit review and approval by the Board of Directors, those results will show a continuation of the strong performance for the first four months of the year reported at the Company’s Annual General Meeting on 11 November 2008, with EBITDA and NPAT tracking ahead of the guidance issued on 14 August 2008.

3. As a consequence of this sustained performance the Directors are presently reviewing the Company’s full year earnings guidance and, subject to Board approval, it is likely that an increased guidance will be issued in conjunction with the half yearly results announcement.

For further information please contact: Don McLay Chairman Credit Corp Group Limited Tel: 02 9347 3600 E : dmclay@creditcorp.com.au Thomas Beregi Chief Executive Officer Credit Corp Group Limited Tel: 02 9347 3600 E : tberegi@creditcorp.com.au

 

[bluecheese101]

Go you good thing! From an all-time low of $0.39 cents a few weeks a go to a close today of $0.73 Exactly one more dollar to go and i will break even

 

[ROE]

Go you good thing! From an all-time low of $0.39 cents a few weeks a go to a close today of $0.73 Exactly one more dollar to go and i will break even

Don't worry about the share price, when the earning is there Mr Market will adjust price accordingly

 

[MRC & Co]

Tsssssssssssssssssssssss.

Love this little gem. One of my 2 long-termers and it's zooming lately. What better company to hold in this environment, than a debt collector hey?

Closed at $1, good to see it actually close here. Let's hope for a good night on the street tonight and this could really get a boost tomorrow, for a start of quarter portfolio aquisition.

 

[nomore4s]

I haven't had a look at this one for a while.

Interesting. A solid break through $1.00 could send this stock a fair bit higher. Have a look at the year long basing pattern under $1.00.

If anyone has read Stan Weinsteins book this is nearly a text book stage 1 pattern. Might have to dip my toe in for my income portfolio - 1/2 parcel to start with.

Weekly chart attached.

 

[michael_selway]

Tsssssssssssssssssssssss.

Love this little gem. One of my 2 long-termers and it's zooming lately. What better company to hold in this environment, than a debt collector hey?

Closed at $1, good to see it actually close here. Let's hope for a good night on the street tonight and this could really get a boost tomorrow, for a start of quarter portfolio aquisition.

Why is it goign up?

Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 12.2 21.5 19.9 30.4
DPS 4.0 4.0 4.0 6.5

thx

MS

 

[MRC & Co]

Nomore, exactly, that 1 buck area is vital. That's why I was glad they closed it on there today, usually that mark is quickly seen with some profit taking and pushing back down. Not to mention, that MAMOTH gap above, though don't think a technical reason could push us that high anytime in the next few years, considering the fundamental reason for the collapse.

Michael, I had it undervalued even at $1, can't remember my valuation exactly now, don't have it with me but it was a fair bit higher, hence was worthy enough for the chance to move into my currently empty bottom drawer.

 

[MRC & Co]

Nomore, exactly, that 1 buck area is vital.

Unfortunately, even with that push up today, we still couldn't crack the level.

Still have faith in it over the longer-term but really need to settle above the $1 mark to be able to form a sustained move higher.

 

[persistentone]

I noticed that Credit Corp is not showing any trades today using Reuters for the graph. Is there some press release to explain this?

 

[persistentone]

Why is it goign up?

Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 12.2 21.5 19.9 30.4
DPS 4.0 4.0 4.0 6.5

thx

MS

Can you tell us which web site gives you that nice graph showing director buys overlaid on the price chart?

 

[bigdog]

I noticed that Credit Corp is not showing any trades today using Reuters for the graph. Is there some press release to explain this?

Company Trading Status: Normal

There are no buyers prepared to pay the sellers SP!!

2 buyers $1.005 6,119 shares
2 sellers $1.075 1,500 shares

 

[persistentone]

Oh man, talk about no liquidity! This thing could trace back pretty sharply under $1 with that kind of thin market.

I wonder if this whole pattern to above $1 was primarily the directors and management buying their additional shares?

 

[MRC & Co]

Man, what a chance to buy off that $1 mark after we finally cracked it and then came back for a re-test.

ROE, still holding a huge parcel of this one?

Nomore, did you add any yourself?

 

[ROE]

Man, what a chance to buy off that $1 mark after we finally cracked it and then came back for a re-test.

ROE, still holding a huge parcel of this one?

Nomore, did you add any yourself?

Yup still holding and haven't let go any...the CEO is doing a superb job...
he need a pay rise . I rare sell stock until it trades above intrinsic value

the dividend I get while I wait,I reinvest into other good company that get treated like a dog by Mr market mood swing something like Flight Centre recently.

I'm happy with 4 cents dividend payment, hoping in a couple year it increase to 6-10 cents ..if it can show Mr market it can deliver 20 cents plus earning a year for the next year or 2 and goes back to the good old day ROE.. $3 mark is not far behind.

I like to buy stuff cheap and waiting something good to happen to it

 

[MRC & Co]

Good to hear mate, you always were one of the best practical fundamental analysts around here!

Hope it can get near the $3 mark as you say, and no doubt, if management can keep this one on track, it has the fundamental business ability to do so.

Good luck with the rest of your investments, hope they are doing well also!

 

[nomore4s]

Man, what a chance to buy off that $1 mark after we finally cracked it and then came back for a re-test.

ROE, still holding a huge parcel of this one?

Nomore, did you add any yourself?

Yeah I did get some for my income portfolio on the retest of $1.00, I think my ave is around $1.05. Only a small parcel though as I'm only buying 1/2 or 1/4 parcels for that portfolio atm.

 

[bigdog]

Great ASX ANN today which the market loved.!!

CCP $1.11 +$0.140 +14.43% with a high of $1.16 91,335 shares $103,121 @ 21-May 10:19:48 AM

21-05-2009 09:38 AM CCP Market update announcement
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00954815

Highlights
Directors of Credit Corp Group Limited are pleased to report continued strong performance over the 4 months to April 2009. Further improvements in operational effectiveness mean that the Company is on track to deliver the upper end of its Net Profit After Tax (NPAT) guidance issued in February 2009 while exceeding the Earnings Before Interest Tax Depreciation and Impairment (EBITDA) guidance issued at the same time. The Directors also provide updated full year guidance to 30 June 2009.

Performance Commentary
The Company is on track to achieve a record EBITDA result for the full year. This is despite relatively modest PDL purchasing, indicating that operational improvement initiatives and overhead reductions implemented over the past year are delivering sustained positive results.

The Company continues to maintain its disciplined approach to PDL acquisitions, after increasing its monthly rate of purchasing by 70% against the first half of the year. The average result for all recent purchases continues to meet the Company’s minimum return hurdle.

Further improvements in collection operations remain as the key driver of favourable performance. The returns from older PDLs continue to improve, with the proportion of total revenues collected from PDLs acquired more than 2 years ago increasing from 21% in the March 2008 quarter to 43% for the 4
months to April 2009. Despite the increased focus on older PDLs, direct collection staff productivity of $227 per hour was achieved in the period, an increase of 20% over the same period in the previous year.

In line with the increase in purchasing the Company has grown its collection workforce by 24 Full Time Equivalent (FTE) staff to 406. The Company is on track to grow its collection workforce to 430 FTE by June 2009.

Financial Position
Sustained operational performance over the last 4 months has further strengthened the Company’s financial position. Net bank debt was reduced by $8.5m over the period to $89.9m. This brings the Company’s net debt as a proportion of the carrying value of its PDL portfolio to 51%. This represents
the lowest level of gearing experienced by the Company since the 2005 financial year.

This level of gearing is well within the levels required by the Company’s banking covenants, creating substantial capacity to increase the Company’s rate of purchasing as appropriate. Accordingly, the Company has already secured $30m of its FY2010 purchasing requirement.

 

[persistentone]

Can someone walk me through the accounting here. Credit Corp is on target to earn $10M for 2009, but they are claiming target EBITDA of $100M. That's an enormous difference, and how is the other $90M accounted for? Is this an impairment charge, or is it some quirk in how they EBITDA is calculated for their particular business? I'm not sure that EBITDA in this case represents any real earnings power of the company.

 

[persistentone]

Can someone walk me through the accounting here. Credit Corp is on target to earn $10M for 2009, but they are claiming target EBITDA of $100M. That's an enormous difference, and how is the other $90M accounted for? Is this an impairment charge, or is it some quirk in how they EBITDA is calculated for their particular business? I'm not sure that EBITDA in this case represents any real earnings power of the company.

The largest part of the difference appears to be due to impairment. What I am not understanding is how do they collect on these debts and then immediately claim an impairment against them? The fact that the impairment charge is being added back to calculate EBITDA strongly suggests they did collect the money for that.

 

[bigdog]

persistentone

"The largest part of the difference appears to be due to impairment."

There was a note on impairment on the second CCP ANN today on page 9
-- refer the attachment

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00954826

Credit Corp Upgrades Guidance
http://www.istockanalyst.com/article/viewiStockNews/articleid/3239212

Sydney - Wednesday - May 20: (RWE Australian Business News) - Receivables management company Credit Corp Group Ltd (ASX:CCP) today reported continued strong performance over the four months to April.

Further improvements in operational effectiveness mean that the company is on track to deliver the upper end of its net profit guidance issued in February while exceeding the earnings before interest, tax, depreciation and impairment (EBITDA) guidance issued at the same time.

Directors also provided updated full-year guidance to June 30.

In the 10 months to April (year to date) unaudited EBITDA was $79.8m and net profit $9.7m on revenue of $128.3m while basic earnings per share were 22.16c.

Updated full-year 2009 guidance is for EBITDA of $93m-95m, a net profit of $10m-11m and basic EPS of 23-25c.

For the 12 months ended June 30 the company achieved $85.72m EBITDA, a $5.36m net profit and basic EPS of 12.29c.

Directors said the company was on track to achieve a record EBITDA result for the full year despite relatively modest purchased debt ledger (PDL) purchasing, indicating that operational improvement initiatives and overhead reductions implemented over the past year were delivering sustained positive results.

The company continued to maintain its disciplined approach to PDL acquisitions, after increasing its monthly rate of purchasing by 70pc against the first half of the year. The average result for all recent purchases continues to meet Credit Corp's minimum return hurdle.

Further improvements in collection operations remain the key driver of favourable performance.

The returns from older PDLs continue to improve, with the proportion of total revenues collected from PDLs acquired more than two years ago increasing from 21pc in the March 2008 quarter to 43pc for the four months to April 2009.

Despite the increased focus on older PDLs, direct collection staff productivity of $227 per hour was achieved in the period, an increase of 20pc.

In line with the increase in purchasing, the company has grown its collection workforce by 24 Full Time Equivalent (FTE) staff to 406.

The company is on track to grow its collection workforce to 430 FTE by June.