The headcount came down, but productivity improved.
CCP claims to be in the Top-6 group of debt buyers in the USA. That should enable CCP to get a seat on many buyer panels run by large debt sellers.
The USA revenue grew, but profitability grew significantly faster. The profit/revenue ratio is still below the Australasian ratio, so there remains leeway for a better USA ratio to emerge as volumes increase. The USA is a huge market, so CCP can expand there for many years.
No impairment reversals were raised, which makes sense - let "reversals" manifest themselves naturally via routine accounting treatment over time.
The number of agreed repayment agreements has meaningfully increased. These payers are very sticky, so the increased value of agreed repayment agreements is significant.
In my 43732915 post of 27/03/20 wrote, In a year or two from now, I expect the SP to be $40, and the dividend close to $1" The SP was then $10.86. A $40 guesstimate fits within a probability distribution, so one could suggest $30 with more confidence, and so some weeks later I decided on $30 as Strep 1, and when the SP got there, I would guess when it should hit $40. Now that we are at about $30, I am happy to stick with my old prediction of $40 within two years - that is, in early calendar year 2022.
I must admit that I cannot understand why CCP had to sell new shares to non-shareholders at $12.50 recently. I am sure the money could easily have been raised by tapping existing shareholders. Apart from having the funds to buy CLH's bag of PDLs, CCP did not actually need the money.
CCP Price at posting:
$31.60 Sentiment: Hold Disclosure: Not Held
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