well yeah, but it depends on how much leverage CCP eventually uses and fast it's deployed, it now has 300m in headroom, but that would leave it a lot more indebted, still below 40% gearing though. Based on the returns on PDLs/Loans CCP gets (circa 13%), maybe that's in the region of an incremental 40m+ in NPAT if that headroom is deployed, plus the retained earnings a long the way, that could be additional 100m over 2 or 3 years. We don't know how much of the PDL book will be written down either, so that will reduce future returns and assets on the balance sheet. However, it's not inconceivable to see CCP making a run rate of $130m+ in a couple of years from what would have been mid 80s FY20 pre-covid. Now 67m shares on issue, so $1.95+ EPS get us to $29.25 at a 15 PER/ $33.15 at 17 PER.
CCP Price at posting:
$18.06 Sentiment: None Disclosure: Held
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