JoeGambler Thanks for that link. I'll comment on parts of its...

JoeGambler

Thanks for that link. I'll comment on parts of its content.

It also worked hard to support its clients, “the sellers of debts”, by being there to buy debts from them no matter how bad things got. “We actually raised additional equity, so we were debt-free and held substantial cash. We were very strong, and that gave our clients a lot of confidence to count on us, come what may.

COMMENT – I have previously opined that the most recent CR at $12.50 seemed to have no justification, and in contrast, Encore Capital and Intrum did the opposite – they bought back their own shares. In the absence of an acquisition, or some other incredibly lucrative deployment of the funds, the dilution effect of the CR was not counterbalanced by anything of equivalent, or better, value, for shareholders, IMO. The underlined words above convey an advantage of being cashed up, but I still think the CR occasioned a net loss of value to retail shareholders, and a bonus for the instos who got the lion's share of the new shares issued.

. . . Thomas says the company has still seen “very strong” earnings growth in 2021 of 11% and is on track for “a very solid year in 2022”. As stimulus packages around the world start to wind up, he expects to see another wave of growth with some “exciting initiatives” in the pipeline.

COMMENT – The underlined words bode well for FY22. I think by “wind up” the writer means wind down – that is, decrease stimulus packages. CCP is a poverty stock, and if governments are dropping helicopter money, there is a diminished need for the hoi polloi to use facilities like WalletWizard.

The next goal for the company is to target the ASX 100, a significant challenge, Thomas concedes. “I think we’re around position 150, so we’ve still got a bit of work to do, but it would be great to get there before I sail off into the sunset,” he says.

COMMENT – The notion of CCP making the ASX 100 is something that I had not considered, and being at position circa 150 makes getting to 100 reasonable, IMO. It's interesting to note that Berregi is looking that far ahead in a milieu where his ASX-listed competitors have to focus their minds on the immediate future.