In my last post I mentioned that KJ thinks that PNC can...

In my last post I mentioned that KJ thinks that PNC can differentiate itself from its other main competitor. In this presentation KJ has tried to emphasise PNC's differences with its main competitor CCP without mentioning CCP's name of course. He points out that PNC is a pure play PDP buyer and does not engage in competing with its lender suppliers by running a lending portfolio within its activities like CCP does. PNC does not reach overseas for business thereby entering a different world of laws, regulations and market nuances like CCP does. They are good points and may well be why he can claim PNC has Australian tailwinds when the opposition is saying much the opposite.

The one area which I thought required more explanation was the info on slide 8. Hopefully he will elaborate within his visual presentation why the payment arrangement portfolio has declined in value while the PDP purchases have increased substantially. I will offer him an explanation which I hope is the real reason and that is because the current batch of PDPs purchased were of a shorter term than the previous and many full payouts were made early and did not require a longer term management plan. If that is the case then that indicates three important values to investors 1. the quality of the PDPs is above average 2. The quick turnover allows better purchases momentum 3. The collection costs are much lower and it allows more time to concentrate on the older PDPs. I am not saying that all that is factual we need to hear KJ point out that slide 8 does in fact mean that and not just infer it.