I think while its a good headline result: 1) margins in the core...

I think while its a good headline result:

1) margins in the core debt business declined
2) increased competition in the domestic debt business
3) the quality of growth is declining given it is coming from the lending business at arguably the back end of the credit cycle.
4) the balance sheet appears extended with a large amount of debt, limiting further purchasing capacity.
5) Staff levels are stretched, unable to digest additional PDL purchases without more headcount.

I think if they can de-gear the balance sheet that would be a good start. We dont need a repeat of 2006/7 with large licks of PDL's without adequate skilled headcount and a geared balance sheet. While we now have some pocket money from the loan book, i dont want them to grow it aggressively at this point in the credit cycle. I think given the environment, it would be better to keep their powder dry ready to pounce on a impending wave of PDL supply, as this credit cycle rolls over.

Of course, the only reason the stock is down is probably because its the first time in a decade they didn't upgrade earnings guidance.