Good question. I reckon that:
a) The mkt has been spooked by the rapid and massive collapse in sector peer CLH. CLH shows no signs of recovery.
b) By their nature future earnings of debt collectors is murky and close to opaque. It takes real skill to buy debt at the 'right' price.
c) CLH's commentary shows debtors are becoming difficult to locate.
d) CCP has ventured into USA. Generally speaking, Aussie companies have a poor record when doing busiess in America.
e) CCP itself had a horrendous 95% collapse almost overnight back in late 2007. We all hope the lessons have been learnt but memories linger.
I hold some CCP. consider company to be moderate/highish risk and no way will i pay a high PE for this sector. If we invest we need to be rewarded for the risks taken.The yr end result is 5 months away. I see no need to top up until a bottom has appeared and more updates from HQ re ROE, ROCE etc. Nevertheless, i continue to hold and monitor carefully.
CCP Price at posting:
$9.36 Sentiment: Hold Disclosure: Held
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