On James Millar, “Mr. Eric Dodd, Credit Corp Chairman, noted that James has worked at the highest level throughout his career including as a leading insolvency practitioner, regional Chief Executive Officer of Ernst and Young (EY) and several high profile Non-Executive Director positions.”
I am not suggesting that CCP is going to get into an insolvency-linked business, but I know that Encore Capital has a small interest in that style of business – see, for example, https://www.insidearm.com/news/00039643-encore-capital-group-acquires-bankruptcy-/ Also, if you look at Encore's accounts you will see references to REO, which are real estate-owned assets. REO asset arise when Encore purchases non-performing secured mortgage portfolios, and it ends up owning that collateral. Alternatively, Encore may purchases the collateral from the rightful owner thereof. Suffice to say, part of Encore's business involves insolvencies.
Encore also routinely resorts to litigation to collect unsecured debt, and that may occasion the debtor to become insolvent. Historically CCP has rarely resorted to litigation, and Management may prefer not to go down that path. It's better for CCP to keep its hands clean, and sell such debt into the secondary PDL market.
CCP Price at posting:
$33.06 Sentiment: Hold Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)