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CCP - Credit Corp Group
- Thread starter ilikegirls
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galumay
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...is not a payday lender, nor is it in the realm of lending being investigated by ASIC in other similar businesses.
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You're right and I do agree.
I do feel however a lender who will lend $500 @ 48% interest plus fees is still lightly predatory.
Personally like CCP as a business myself.
pinkboy
galumay
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Oh so elegantly put!
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I couldn't disagree more. Find me a finance company that can perform adequare checks on the borrower, write loans, follow up on payments, and still make a sufficient return on capital employed.
The unfortunate reality of it is that such small loans require a much higher interest rate for the business to be viable. And if the business is not viable, it's not sustainable long term.
It's either loans @ those rates, or no loans at all really... I'm not sure which is worse.
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Was meant to be 'slightly'. Went to edit later and locked out.
Could be worse. www.nimble.com.au is potentially 66%!
Don't worry, I understand fully time and costs involved with fees for service and lending. It's a lot of legwork to make a few points off a $500 loan. ....but where there is a market, there will be a supplier.....
pinkboy
tinhat
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I got out of CCP when I started seeing those Wallet Wizard ads on TV. I've missed out on quite a bit of upside since then. I also used to own TGA too but got out of that some while ago too. I'm steering my portfolio away from businesses that I find more questionable on ethical grounds. These are personal value judgements. I've been very long the big four banks for years now, more so the last year or so and their ethics are not without question.
Knobby22
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I stopped owning the four big banks for a few years now as I expected their behaviour to bite them through government action due to their poor behaviour. This latest tax vindicates my action and I am glad to own Bendigo and bank with CUA. I think CCP has more ethics than the big banks had a few years ago (but maybe the returns are colouring my thinking).
galumay
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CCP has had a pretty strong rerating over the last couple of years, I bought most of mine at around $9 not that long ago. I think the run up from there has brought CCP much closer to a price that reflects it's value.
Given that CCP has a long history of under promising and over delivering, the next catalyst is likely the reporting for the FY.
Given that CCP has a long history of under promising and over delivering, the next catalyst is likely the reporting for the FY.
It seems to run up to that point but then results come, add some decent news then chops between the $16 and $19 mark. Feel like we need something bigger to happen...
There is plenty happening with CCP if you look beyond the chart.
Profits from the lending business are starting to flow through strongly and this will continue into FY18 providing the basis for further strong profit growth.
Domestic PDL market is looking good, probably helped along with CLH's demise.
The US PDL is the biggest opportunity for further strong growth. Should be at break even point now and if CCP can succeed there then you will see it reflected in the share price.
Profits from the lending business are starting to flow through strongly and this will continue into FY18 providing the basis for further strong profit growth.
Domestic PDL market is looking good, probably helped along with CLH's demise.
The US PDL is the biggest opportunity for further strong growth. Should be at break even point now and if CCP can succeed there then you will see it reflected in the share price.
Morningstar cut their recommendation to hold with a price target of $19.35. Seems a little strange when the SP is under shooting their target but eh, market does what it does. I'll be looking to add if it drops to the low 16s. Good divvie and consistent growth.
skc
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The numbers this year appear solid and the forecast for FY18 also in line. But the PDL budget for next year is pretty low. I think the market has partly assumed that this will be revised upwards through the year, other wise CCP could be looking at a lean FY19?
Good pick up. If you look back at their results, they talk about not purchasing PDLs when they come expensive etc, but always seem to pull a rabbit out of the hat come results and have made in roads in this regard. They're also an efficient bunch, so maybe they're also squeezing more out of the current?
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