The next topic I wanted to cover was the up-front provisioning of unsecured loans.
Last night my thoughts drifted onto a favourite theme of mine, time shifting. I need to check a few facts, but my thoughts were that unlike its competitors who tend to want to shift profits ahead of reality, CCP does the opposite. However, when reality makes the belated profit hard to hide, Management looks for a new place to squirrel profit, and perhaps that is where up-front provisioning can play a role. As PDL collections generate more money than is mete for their their impaired value, over provisioning loans can suck up some of that. Growing the collections capacity in the US is also a time-shifter, because the spend is expensed (not capitalised), whereas the benefits of the spend occurs in later reporting periods.
I'll return to this topic when I have had time to do more than vent thoughts that spring to mind.
CCP Price at posting:
$29.83 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)