The CEO of Encore Capital worded the situation of cycles very well in a relatively recent Annual Report, or some such report. Basically he said that in its case, A PDL has a life of about ten years, and the reality is that Encore collects what it expected to collect over that time. He also mentioned that over a decade, there are times when collections are good, and they tended to occur when PDLs were difficult to acquire, and there were times when the opposite was true, and hence on balance Encore's best long-term interest was not affected by cycles. One just has to think in ten-year time spans, or at least six year spans.
The population born since since instant coffee became freely available struggle to think beyond the immediate term. My grandfather used to get up at five in the morning to light the fire that heated the stove that heated the kettle required for the family to have coffee at about 6:30 AM, and no doubt cook whatever they had for breakfast at about then. Schools and offices opened at 8:00AM, so wake-up coffee or tea at between 6:00 and 6:30AM was the norm. I was astounded when I came to Australia to find that everything seemed to start later in the morning.
CCP Price at posting:
$20.31 Sentiment: Hold Disclosure: Held
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