Well, the whole market got this wrong today, with the price fluctuating by up to 13.5% from today's low of $18.35.
It took a while for investors to establish that (among many other issues I will not include here):
1. Total PDL carrying value still went up over the year, by 7.6%, despite PDL collections also increasing by 7%. Not bad when we had all been very concerned about the announced lower buying in Australia.
2. CCP is very well positioned in the USA for significant growth over the next two years, with rapidly growing staff numbers and ongoing operational improvements. This will more than make up for any slowing in Australian growth.
3. Market dynamics for credit lending is turning in favour of CCP, with signs of credit rationing and increasing demand.
The big question for investors is how conservative CCP has been with their outlook. Based on the above I expect low double digit growth in EPS.
CCP Price at posting:
$20.58 Sentiment: Buy Disclosure: Held
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