Ann: CLH ASX Release, page-6

This deal pans out at about 17 cents a share, so even if CCP has bought nothing for $11m, there should be little need for the SP to drop more than that. CCP goes ex-div on 1/09/22 and pays 36c on 12/09/2022. The SP may stay down because of that. On the "guidance" remaining static, CCP does not seem to base guidance on what it thinks, it bases it on what is locked in. In past acquisitions, after a few months guidance has always increased.

CLH was destroyed by poor management, just as CCP was nearly destroyed by a similarly-minded management circa 2009. It was the management quality that was the issue, not the quality of the collectors. Being cautious, I'll not comment on the ethics of CLH's early management team a decade ago. There are many words that rhyme with “hump”, and “pump” and “dump” are two of them.

On the quality of the collection teams working in the collections-as-service arm of CLH, the likes of Telstra, the major banks and government agencies do not allow their debt to be handled other than professionally. Collectors can be switched between: fresh PDLs; old PDLs; agency collections; and loan collections (Wallet Wizard, for instance). Further, the ANZ collectors and those in the Philippines could, and were easily switched, because of similar time zones, and now we have seen the latter switched to collect on US debt. If ANZ has a surplus of collectors, they can collect on some of the debt that the Manilla office now collects, and more of the collectors there switched to US collections. Filipino collectors can easily be found to work night shift there to service the US at a wage that could not be matched by Australian and NZ collectors.

Because I had the funds pursuant to exiting circa 3,400 NEA at $2.10, I bought 3,500 CCP to day, according to an email I received that reads, “You've bought 3500 units in CREDIT CORP GROUP LIMITED (CCP) at a price of $19.53 per unit (not including brokerage), on trading account ******* XXXX SUPERANNUATION A/C”. Let us see what happens to that punt.