CCP - Credit Corp Group

[Value Hunter]

I do love the management but I see a lot of risk up ahead and feel it is fairly fully priced.

I am not buying at current levels as I am of the same opinion as Galumay however I continue to hold and think the stock is far from fully priced. If you look at their objectives they target a 16 - 18% return on equity with modest gearing on average over the long-run. To date it has achieved this objective on average with some years being a return on equity being in the mid 20s and other years return on equity being in the low double digits.

Return on equity is a bit below the 16% - 18% now but there is no reason it should not increase over time to be back in line with the target. A company generating 16 - 18% return on equity with a medium risk level and reinvesting half of its earnings (on average) at those incremental rates of return should be worth at least 2 times book value per share. Book value per share is somewhere around the $12 mark. Meaning intrinsic value per share should be at least $24 per share if your required rate of return is around 10% per annum. And I say $24 as a minimum. A case could be made for intrinsic value per share being higher.

 

[galumay]

Great articulation of your thinking @Value Hunter, not the way I think about valuation, but I am always happy to hear arguments in favour of higher valuations for my holdings!

 

[Value Hunter]

In the spirit of full disclosure since I have been a huge supporter of the stock on this forum over the years I thought it would only be fair that I inform the forum that today I liquidated my entire holding in Credit Corp.

My parents who I advised to buy into Credit Corp years ago still retain all of their shares and I am still a believer in the company.

The reason for the sale is I got out of stocks entirely and added the money to my already substantial crypto currency portfolio as I expect crypto currency gains over the next 12 months to be superior to the gains available in the vast majority of stocks including Credit Corp. I think the Trump victory was the catalyst that will continue to send the crypto markets into overdrive for the next 6 - 12 months.

For example I think its very possible that Credit Corp shares could be in the $20 - $25 per share range in 12 months time given that it is currently undervalued. That equates to a 10% to 40% gain from here. Meanwhile I think in the next 12 months Bitcoin could still double or triple from its current price (with some other cryptos doing even better). Given I am able to stomach the additional risk I decided to do it. I could easily have egg on my face in another 12 months time, but we will see how it unfolds. Any further discussion of crypto can go in the relevant crypto related threads as I do not want to derail this thread.

 

[finicky]

Buys nothing except CCP for years then tips it all into crypto.
After this disclosure we need a 'flabbergasted' emoticon.

 

[divs4ever]

i bought mine in 2012 , thinking there would be a crash in 2013

despite that bad prediction CCP did very nicely for me , i rescued the investment cash twice over and still hold some

the plan was to TRY to have income streams in the very worst of economies , maybe CCP will do as i planned ( if a crash arrives )

i never really warmed up to cryptos , despite being a computer hobbyist

good luck with your crypto- adventures

 

[galumay]

Mind boggling, I respected @valuehunter as an investor, but that is totally gone now. Scary that otherwise seemingly rational people would fall for this nonsense. Oh well, another member on ignore.

 

[Faramir]

@Value Hunter good luck with crypto. Of all of the shares you hold, you picked CCP to let go. That means your other stocks must be so much higher in terms of quality, share price, future prospects, etc.

I regret not buying more initially because I was nervous about my decision back in 2015. I also wished CCP had a dividend reinvestment plan.

Now I am afraid I might be too blinkered thinking that CCP is the best. It is hard for me to open up my mind to receive information about that is different to my own biased judgement.

I’m still going to hold my small position. I have no reason to let it go.

 

[finicky]

Oh come on @galumay, he's not hurting anyone ffs.
This could be like one of those weird moves that a chess computer makes against Magnus Carlsen*
I hate crypto but good luck with it Value Hunter, you are one weird dude and I mean that as a compliment.

* I suck at chess

 

[Dona Ferentes]

oh well, at least there's a way out. @Joe Blow has a rule a nick can be changed, but only after 10 years. VH qualifies

Value Hunter​

Joined 24 February 2013

edit:
Tulip Chaser comes to mind. Same number of letters, and syllables, too.

 

[finicky]

@Dona Ferentes, lol, yeah someone explain me simply how to value bitcoin.
With gold I s'pose I'd brush up from my sources and bs about history of money and how eventually gold does catch up with fiat money supply and then ratios of gold to oil/DJIA/ and whatever else I could find. Crypto has no history. Has nothing really, a will-o-wisp. But then, I'm not a pure value investor by any means, just an amateurish eclectic

 

[finicky]

@Faramir read it again, he got out of all stocks. Didn't pick on CCP.
He expects CCP to improve in price but nothing like crypto.

For example I think its very possible that Credit Corp shares could be in the $20 - $25 per share range in 12 months time given that it is currently undervalued. That equates to a 10% to 40% gain from here.

 

[finicky]

Fwiw, while it looks a bit ripe for a modest retracement, the weekly chart is still looking ok to me for the patient.

WEEKLY

 

[Faramir]

@Faramir read it again, he got out of all stocks. Didn't pick on CCP.
He expects CCP to improve in price but nothing like crypto.

Thank you for correcting me.

 

[qldfrog]

oh well, at least there's a way out. @Joe Blow has a rule a nick can be changed, but only after 10 years. VH qualifies

Value Hunter​

Joined 24 February 2013

edit:
Tulip Chaser comes to mind. Same number of letters, and syllables, too.

Sure but we, the level headed afr crowd , have money in CBA , a bank with a PE of 25 we call blueship, and own AUD or USD, not even worth the value of paper of coin metal as it is safely recorded in a cloud or somewhere on a magnetic field variation.
We boast of a 40% yearly growth but as the post i just sent on the Duc's thread, shows, the tulip chasers did that last week
170% in the last month..
So in the last month, put 100, took it back this morning, risk 0 and $70 in the crypto bank on the top.

Ps i do only small crypto play but i respect as much a xrp or ethereum player and an asx or nasdaq play with current PE

 

[Value Hunter]

Buys nothing except CCP for years then tips it all into crypto.
After this disclosure we need a 'flabbergasted' emoticon.

View attachment 188352

Not quite accurate. I have owned crypto and precious metals for years, but yes in terms of stocks Credit Corp is the only one I have owned in recent years. I had a substantial position in Credit Corp. But I also had a substantial crypto position (over 90% of my crypto portfolio is bitcoin) which I have already had for years, this move was just a further position to weight my portfolio even more heavily into crypto (mostly even more Bitcoin).

And yes I am aware I am increasing the risk profile of my portfolio but so be it. My living expenses are modest, I have no debt and no dependents and earn some income from working so I can afford to take the risk and if it goes bad then so be it.

 

[Value Hunter]

Oh come on @galumay, he's not hurting anyone ffs.
This could be like one of those weird moves that a chess computer makes against Magnus Carlsen*
I hate crypto but good luck with it Value Hunter, you are one weird dude and I mean that as a compliment.

* I suck at chess

I guess Galumay must have put me on ignore because I cannot see his posts anymore. I guess he must have thought I was being dishonest or trying to pump and dump the stock, etc. Well firstly Credit Corp has a big enough market cap and daily volume that people on this forum are hardly going to affect the stock price and secondly I am entitled to change my views from time to time if I see the facts changing as is anybody else. I do not feel I have done anything wrong.

I will just reiterate that my parents still own a substantial number of Credit Corp shares (on my recommendation) so I will still be keenly observing the company and occasionally giving my 2 cents worth on the company as I have previously done.

 

[divs4ever]

Mind boggling, I respected @valuehunter as an investor, but that is totally gone now. Scary that otherwise seemingly rational people would fall for this nonsense. Oh well, another member on ignore.

different strategies for different members , i am sure some of my moves have baffled other members as well

MAYBE @Value Hunter has been reading about \The Great Taking ' or Great Reset and considers them a high probability of completing

he might also be considering migration to a sensible place that isn't kicking down doors looking for extra taxes

interesting times are coming

if CCP comes back to the $6 range i will consider adding more ( but i don't think the sellers will be so kind )