Its nice to see a bit of discussion, sadly it was a disappointing result due to a weak outlook. I would have also liked to see far more detail on the performance of the new ventures, particularly US consumer lending. However, I know this lack of detail is keeping in with CCP's style and probably more about conservatism.
On the outlook, the lack of supply and labour shortages are a concern. Though this not company specific, and the cyclical nature of supply should behin to turn in CCP's favour.
Although distasteful to say, the reality is that cost of living issues will drive consumer credit card use. This has already occurred in the US and by Christmas in Australia I see use moving to pre covid levels. Adding $50 to a weekly food bill and doubling interest rates should drive credit and bad debts in the new year.
The reality is CCP has low quality aspects to its business, namely that it cannot control supply of debts and is in an asymmetrical relationship with banks. For this reason I would not expect multiples much beyond 20x, but it is a great business in a poor industry.
CCP Price at posting:
$23.18 Sentiment: None Disclosure: Held
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