CCP - Credit Corp Group

[galumay]

EDIT - EDIT - CCP fell a lot in 2007, from about $12 to $1 - in 2008 FY they announced falls in profit of about 50%, share price had already doubled and basically continued on its steady rise all the way up to $35 12 years later.

I seem to remember thats how Dodgy Roger burnt all his clients money, loaded up in the $12's and then got wiped out when it crashed to less than a dollar.

 

[JTLP]

I seem to remember thats how Dodgy Roger burnt all his clients money, loaded up in the $12's and then got wiped out when it crashed to less than a dollar.

CCP absolutely crunched. Dropping 40% this morning. Is this off the back of anything? I can’t see an announcement...

 

[sptrawler]

I still hold all of my shares in Credit Corp and its still my largest share position. Indeed its my single largest investment.
.

Good write up VH, on reading their announcements, Donald Mclay the chairman is obviously no muppet he sold quite a few in Jan/Feb.

 

[Value Hunter]

I do not have any more cash left but if I did I would be buying more Credit Corp shares. Its a rock solid company (unless you think we are heading into another great depression and unemployment goes to over 20% and therefore people cannot pay back their debts).

 

[JTLP]

I do not have any more cash left but if I did I would be buying more Credit Corp shares. Its a rock solid company (unless you think we are heading into another great depression and unemployment goes to over 20% and therefore people cannot pay back their debts).

From a low of $7.23 today to back to $11 as I type...somebody thinks so as well.

I’m in the same boat, and I think I will deploy more capital when the ship steadies.

 

[finicky]

I would be sacrificing something off the bottom and waiting for a monthly or at least weekly chart signal on this, whatever your personal chart signal might be, intraday reversals count for a lot less in a plunge like this, imo. Last time I experienced a bar like March CCP was my first visit to Crazy Horse in the 70's,

 

[galumay]

From a low of $7.23 today to back to $11 as I type...somebody thinks so as well.

I’m in the same boat, and I think I will deploy more capital when the ship steadies.

Yep, I got itchy finger when it dropped to $8 today. I held off as I think its too early to start buying yet, but anyone who knows this company and has followed it for a decent time would be pretty confident buying at anything below $15.

Its probably one of the first things I will buy when I move into the market.

 

[JTLP]

CCP have withdrawn their guidance - fair enough. Although they’ve said thus far they’ve seen no material impact to their bottom line.

Let’s see how this opens up - I honestly feel this was in the know from yesterday with the capitulation we had.

 

[peter2]

No demand for CCP yet. Looks like the investors are distancing themselves from CCP.

 

[kid hustlr]

I find this chart incredible, not because of the rise and fall but more so in the context of member's who's opinion I value seeing it as such a strong company.

Hoping all the best

 

[InsvestoBoy]

I find this chart incredible, not because of the rise and fall but more so in the context of member's who's opinion I value seeing it as such a strong company.

Hoping all the best

But how strong a company is has nothing to do with the price over the short term, only average prices over the long term.

Imagine CCP has a huge shareholder and they decide to get out at any price on a complete whim, they can offer shares all the way down until they are flat, nothing about the companies fundamentals has changed.

 

[InsvestoBoy]

Also imagine this hypothetical shareholder is trying to sell their shares at a time when liquidity is low, they can burn through a huge number of levels in the bid book, very easily.

 

[Knobby22]

But how strong a company is has nothing to do with the price over the short term, only average prices over the long term.

Imagine CCP has a huge shareholder and they decide to get out at any price on a complete whim, they can offer shares all the way down until they are flat, nothing about the companies fundamentals has changed.

The company fundamentals have changed.
A lot of the loan book is unrecoverable.
The world had gone to ****, that's the problem.

 

[Triathlete]

One current valuation I have looked at has it at $5.70.....

 

[InsvestoBoy]

The company fundamentals have changed.
A lot of the loan book is unrecoverable.
The world had gone to ****, that's the problem.

Sure.

I'm not saying the company is strong, or not.

I'm just saying share price declines like this can occur for strong companies, that there is no rule about how far a companies shares can fall (or rise) in the short term relative to fundamentals.

 

[galumay]

It could have further to go yet, remember it fell from $12 to under $1 in the GFC, it recovered very quickly because the business was much more resilient that what was priced in. The long term fundamentals of the business are basically unchanged, as an investor you have to decide what short term impact there will be on the business and how the market will perceive that.

I think its now at a compelling price for a long term investor, with a large margin of safety,but that doesnt mean Mr Market won't price it lower in coming months.

 

[finicky]

It'll take time to find its legs again imo, sentiment counts. The chart took almost a year to base in the GFC - tiny bodied candles is what I'll look for myself. If it's to be a V shaped share price recovery, which I strongly doubt, I am willing to miss out. This is a different management since GFC admittedly but s.p lost more than this back then percentage wise.
We know the chair guy was ok for selling near the top, are directors buying yet - no.

 

[finicky]

Whoops sorry, announced today:
Donald Evan McLay
DOC 16th 17th Mar
25,000 shares bought on market
$514,034

I should think so

 

[JTLP]

Hearing the scale of job losses now (AFL etc) it’s probably dawned on me that CCP will be in 2 minds:
- unable to recover existing repayments from debtors as they’ve gone too fat underwater
- ability to generate new business through the unfortunate circumstance of people losing their jobs.

It’s all a bit messy and sad atm.

 

[JTLP]

Whoops sorry, announced today:
Donald Evan McLay
DOC 16th 17th Mar
25,000 shares bought on market
$514,034

I should think so

He paid $20 a share basically. That’s bad juju.

Would be a huge vote of confidence if he doubled down now.