CCP - Credit Corp Group
- Thread starter ilikegirls
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Will these PDL purchases be as profitable as previous?
Has the market come back to CCP's purchasing criteria or has CCP met the market to increase purchases?
ps
I don't know the answer.
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In the result they spoke of trouble renewing forward flows, however now they have announced that this has reversed. Your question is pertinent.....and without asking the company specifically we can only rely on our best assumptions.
Historically, this management team has been transparent and as HC said been serial underpromisers and overdeliverers. If they are compromising this trait and risking their reputation of meeting target returns by increasing over and above what they should be paying...I would be disappointed. Other than shooting off an email to prod them for a better response - all I can do is keep monitoring the relevant metrics to ensure they are not stretching their book to bolster PDLs.
Probably not worth taking too much from my posts though, CCP is a very long term holding for me and has grown to be a good chunk of my portfolio - I am clearly biased.
galumay
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awesome result, these guys are the best of the best, year on year grow, year on year dividend increase and the consumer lending generating profit much faster than I anticipatevery very happy
the secret ingredients is paying off in other areas
Hard to find anything to fault in the half yearly report! Very happy to hold CCP, I agree about the 'secret ingredient'.
Solid set of results.
Slight decline in earnings from PDLs but the outlook for them is looking up.
Lending contributed to all the profit growth but this was actually due to a decline in new loans which is only temporary.
It gives an insight of what the true profit of the lending division is when it's not being impacted by the upfront provision. What we should be hoping for is large losses from the lending division as they continue to write significant new loans.
Very excited about the next few years for CCP.
Slight decline in earnings from PDLs but the outlook for them is looking up.
Lending contributed to all the profit growth but this was actually due to a decline in new loans which is only temporary.
It gives an insight of what the true profit of the lending division is when it's not being impacted by the upfront provision. What we should be hoping for is large losses from the lending division as they continue to write significant new loans.
Very excited about the next few years for CCP.
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The provision is a cost of doing business and represents a real cash outflow for the business. By the company's own estimates 25% of the money it lends out won't come back. That is a real expense to the business. The loan book has grown very quickly and it will be interesting to see if there provisioning is correct, which we'll only know after a few years.
and remember these guys since the debacle they usually over estimate cost and under promise result
so I expect the provision will be revised down the track
no one expecting much growth this year a while ago based on their own estimate and wham 17%
not many business can deliver this sort of grow in earning currently
so I expect the provision will be revised down the track
no one expecting much growth this year a while ago based on their own estimate and wham 17%
not many business can deliver this sort of grow in earning currently
Yes, it is a real cost of doing business but the recognition of the full amount up front on writing the loan, before any revenue is recorded, doesn't represent the true economic situation. We won't know until it's all completed but it's pretty safe to say they are understating their true economic profit at this stage.
Compared to their peers, CCV, TGA, who are recognising loses on an incurred instead of expected basis, their profit is understated.
Compared to their peers, CCV, TGA, who are recognising loses on an incurred instead of expected basis, their profit is understated.
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They both provision. I'm pretty sure the AASB would require provisioning as part of the estimation of future cash flows.
CCP have early adopted AASB 9 which changes the provisioning model from an incurred lost to an expected loss model. The all have provisions, CCP just recognises provisions for losses sooner, hence understating profits when there are a lot of new loans.
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Yes, I see what you're saying. CCPs approach is more conservative.
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Back in old days when I did my MBA there was a subject called Business Ethics. It is a joke when I know they do not go together excepting to publish in annual report, vision and mission statements in the website.
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The Chart for the CCP has touched the 12.00 mark for the 5th time, and recently the share has pushed through this mark, I feel there could be more upside
Kind Regards
Christianrenel
Kind Regards
Christianrenel
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Whilst I can't say I got the bottom like fellow ASFer ROE did, I did get onto this one pretty early after the collapse.
Today is a bit of a celebration as it eclipses the previous all time high of $12.99 set 8 years ago in July 2007.
Today is a bit of a celebration as it eclipses the previous all time high of $12.99 set 8 years ago in July 2007.
tinhat
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Kaboom! Dropping like a stone. I understand that this might be on concerns that USA corporation Encore Capital has taken a majority ownership of Baycorp and concerns that increased industry competition for debt ledgers domestically might see margins fall.
And yet, the annual report out today states (p29)
2016 outlook
Credit Corp is well-positioned to deliver another year of solid earnings growth. The core domestic debt purchasing segment will benefit from strong purchasing over the second half of 2015 together with a satisfactory pipeline of acquisitions for 2016. The consumer lending business is on track for further growth from its strong starting position.
Any thoughts?
And yet, the annual report out today states (p29)
2016 outlook
Credit Corp is well-positioned to deliver another year of solid earnings growth. The core domestic debt purchasing segment will benefit from strong purchasing over the second half of 2015 together with a satisfactory pipeline of acquisitions for 2016. The consumer lending business is on track for further growth from its strong starting position.
Any thoughts?
galumay
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Given that there is nothing in the public arena to cause such a large drop relative to the market, it looks like simple old insider trading. Someone knows something and is acting, all too common in our market. Regulators to weak to do anything about it. Cest la vie!
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That's a big call.
I think it could be quite easily explained by the fact that CCP is a thinly traded stock. One holder with a decent line of stock doesn't like the thought of an increasingly competitive marketplace going forward (which is what a few analyst notes have alluded to) and they are punching for the exit. Lots of stops probably getting hit too doesn't help and then the mini crash turns into a self-fulfilling prophecy.
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