There having the rally I predicted yesterday but does not change my fundamental view that they will go bust like CLH
Looking at the market overall and the monthly ASX charts if we retest the recent lows and they hold there is a chance for the ASX to retest circa 5600.
Thats a near 20% rise from here and as stocks such as CCP and Afterpay have had exaggerated market moves from a trading perspective there is a potential another 50% upside as the sell off has been relentless and short positions have to be closed.
If you look at the published results there cost of collections is rising every year so it's becoming more difficult to collect debt.
in answer to the poster who said to conserve cash they simply need to stop purchasing PDL books, but in that scenario they offer no growth.
Apart from this the newest debts are easiest to collect and the aged debt much more difficult and you would see a significant hit to EBITDA
CCP Price at posting:
$9.12 Sentiment: Sell Disclosure: Not Held
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