While I completely agree with you in regards to the valuation method, surely over the next couple of years CCP's ability to grow earnings will be based on the amount of PDL's they can purchase each year and how well they can generate a return. I guess what I'm saying is at some point earnings growth will slow and stabilise (I guess). At that point the market would probably assign a multiple to it. Just trying to work out at what earnings this will happen, at a guess 80c eps, so x13 multiple on that $10.40. This is all a guess obviously and I have no idea at what point the growth would start to slow down. I'd love to hear your thoughts on it though.
Dui, you are also right, it could very high due to the fact that the stock is tighly held.
Any thoughts appreciated, always keen to hear what others on the forum think about CCP.
CCP Price at posting:
$5.44 Sentiment: Buy Disclosure: Held
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