Ann: COVID-19 - Credit Corp withdraws FY20 guidance, page-115

Thanks for that link. Reading it reaffirmed my often-mentioned point of view that CCP's significant differentiator is the personality of the current leadership compared to that of the ante-2008 team, and the leadership of CCP's competitors.

Profitability in the PDL business is easy to manipulate in the short-to-medium term by inflating the value of PDLs held, and this seduces management to go down that future-destroying track. Often management's short-term incentives were dysfunctional in that they encouraged behaviour that was not in the long-term interest of shareholders. In a perverse way, the self-induced disaster of FY2008 set CCP on a new behavioural track that has served it so well.

That class action mentioned occasioned CCP to create a $6m provision, which would have weighed on the statutory NPAT in those early post-disaster times. CCP won that joust, and hence a few years later it was able to reverse that provision. Provisioning that $6m indicates just how financially conservative CCP is.

The need to have access to bank funding in the early post-disaster years was then necessary, but subsequently the facility has became nice to have, rather than vital. In contrast, access to external funding remained necessary for CLH, and later PNC, because they chose to go down that broad and easy path, rather than the strait (narrow) path down which the more disciplined CCP wended.

If I am bullish in respect to CCP, it is at least a self-created optimism, rather than one adopted from some “expert”. I usually record a “hold” sentiment in my posts, but having recently bought more CCP shares, I switched that sentiment to “buy”. In the near future, I'll revert to “hold”, because I do not expect to buy more.