CCP - Credit Corp Group

[McLovin]

I tend to favor management that has their skins in the game and I
100% have faith in them to do the right thing...

With Uncle Don and Uncle Simon hold 2 million shares a piece it's not small amount of
money so I'm sure they want to grow their share portfolio like any of us.

Other Uncle I like that has skin in the game is Uncle Graham from Flight Centre
Uncle Con from Centrebet , Uncle Peter and various directors from Cash Converter...

I buy up all these business where I identified management has big stake in the business and their fortune depend on the success of the business...

Good point, with two caveats: Firstly, their skin I hope hasn't come at the expense of other shareholders through OTT ESOPs; secondly, I like when a good bit of their own wealth is tied up in the company, not just a good bit of money. Case in point a friend the other day was telling me how James Packer must really believe in online retailing after he paid $60m for 40% of Catch of the Day, of course when you have a few billion lying around $60m is not really having skin in the game.

ROE, you have a lot of uncles!

 

[VSntchr]

Heard on YMYC last night that Mutual may still be selling down there stake in CCP and also TGA. Without any notices to the stock exchange within the last few months I don't know how true this is though. At last call they still had over a 5% interest from memory.

 

[VSntchr]

CCP continues to underpromise and overdeliver..AGM presentation today has upwardly revised FY12 NPAT to $23 -23m.

Looks like the Philipino expansion has become profitable.

PDL purchases have slightly exceeded the very conservative estimate so that is also good news for owners.

 

[ROE]

This stock now is officially a serial under promise over deliver....
another earning upgrade...debt down to a pocket change of 7m, debt free by
the end of the year ... Crazy cash flow...

increase dividend this year?

I have lot of Uncles but I only chose good Uncle, others are not
worthy to be my Uncle, they are bad uncles they rip you off

 

[drworm]

Yep definitely serial under promiser. In fact I was waiting for a profit upgrade this morning... And they didn't disappoint.

Note... The forecast is still on the conservative side. If they keep up the rate theyve started the first 4 months (~30% earnings growth over previous year), we're looking down the barrel at EPS 60c for the full year.

Would not bat an eyelid if we see another upgrade between now and the annual report

 

[robusta]

If this profit growth can continue the dividend yield should be something special in the future.

 

[skc]

Yes CCP is pretty much the same thing with PE~8.3 on forecast EPS ~46-51c (~+10%) and dividend yield ~5% (7.1% gross). CLH has slightly lower PE, similar growth, and higher divdiend. While these numbers are slightly in favour of CLH they are close enough.

But the intangible is that CCP announced their forecast back in early Aug when the market was not in the mood to mark them up. Whereas CLH announced the update today that might garner some positive attention and demand in a more positive market.

Imgaine like 2 people stranded on an island with similar intelligence and physical attributes. One fired his flare 2 months ago on a cloudy day in non-fishing season. The other fired his flare today on a clear night during fishing season (so a fleet of fishing boats might be around the bay - yes it's a very elaborate analogy). So I pick that there's a higher chance that the second person will be rescued first.

Lol so much for my flare analogy. CCP brings out a big one he had hiding in the backpack.

Bought some today at $3.94. Didn't think I was going to get hit but someone wanted out today for some reason. Just going to trail this one technically and see how it goes... first target ~$5 which is still single digit PE.

 

[drworm]

skc,

Although from the bottom line numbers CCP and CLH are vaguely comparable, true beauty is more than skin deep. One is a stunner and the other I can't vouch for.

Check out how much ledger assets are on the books and how much collections each company generate every year. You might find a difference that would suggest that something's not quite right with one of them...

Debt is another indicator... CCP has repaid over $100m with no cap raising over the last few years.

I've made a more detailed post on my personal blog. Won't post here, but will share via PM if interested.

 

[VSntchr]

WOW CCP has been copping a beating lately. It is now well below the price it was at before the profit upgrade...

Even if they dont grow over the next 3 years..the price is still enticing.

As such ive topped up at $3.56...

Lets enjoy the ride!!

 

[skc]

WOW CCP has been copping a beating lately. It is now well below the price it was at before the profit upgrade...

Even if they dont grow over the next 3 years..the price is still enticing.

As such ive topped up at $3.56...

Lets enjoy the ride!!

Sold my shares at ~$4.15 average. Got back in the other day at $3.80 with ~half the position.

The chart printed a lower high with the spike from last week and now broken below support at $3.80. Next stop potentially ~$3.3.

While that's what the chart says it's difficult to understand why someone chooses to sell now as opposed to last week.

 

[VSntchr]

Well my $3.56 entry turned out perfect.
I am very overweight CCP so am conisdering selling the most recent purchase and swapping into TGA..which I currently have no exposure to...and like CCP has fallen back to "pre-upgrade" levels...

 

[VSntchr]

Another upgrade.
Divvy increase..let the good times roll

 

[ROE]

I added 4000 more to my super account at $3.70 -
Now sit back and eat fully frank dividend..

I was expecting 15c this half - it wasnt to be

I expect 15c dividend comes second half.....

Debt once again down ...debt free soon wohooo

 

[VSntchr]

I added 4000 more to my super account at $3.70 -
Now sit back and eat fully frank dividend..

I was expecting 15c this half - it wasnt to be

I expect 15c dividend comes second half.....

Debt once again down ...debt free soon wohooo

Yeah they are certainly on track to have minimal debt by EOFY12. Think of the divvy increase once they dont have to pay ~$10m debt + interest each half!!!

 

[VSntchr]

Announcement out today which has refined profit estimates for FY12. Previously 24-27. NOW 26-27.

PDL activity has also been strong which is a good signal for FY13.

 

[ROE]

breaking all time high after the crash some year ago
if it exceed fore cast comes Tuesday look out ...$8 isnt out of the question short term

and this stock need to start commanding some premium, debt free by then, Return on Equity better than our big 4
and growing at a decent pace.

here hoping for 15c final dividend annoucement on Tuesday

 

[ROE]

and thankyou for 16c dividend ...i was expecting 15
I am excited with the dividend
and debt free, expect more divdend in coming years
and suspension of DRP still in place so very strong cash flow more
than enough to buy more debt and pay dividend

 

[ROE]

Their annual report makes a good read, this business could be the next Aussies to go Global like
their big brother before it ... CSL,BXB,CPU etc...

doesn't hurt too directors keep buying on market

 

[Knobby22]

Yes, bit riskier also though. Glad I bought in though, they have done well.

 

[VSntchr]

Their annual report makes a good read, this business could be the next Aussies to go Global like
their big brother before it ... CSL,BXB,CPU etc...

doesn't hurt too directors keep buying on market

I read this yesterday and was going to post something similar. They have emphasised numerous times that they are being very cautious and patient with the expansion, which is very important so we don't see a repeat of last time! The future looks very good for CCP and hence its the biggest weight in my portfolio.

Now that debt is paid off they will be able to allocate more capital to these expansion plans if needed, and of course, if not...divvy's are going to be increasing at a very nice rate...