But for minor points, I agreed with the brokers. Nothing significant to CCP changed between February and a few months later when the SP declined below $20. On differences of opinion, I'll mention three:
One broker (Cannacord Genuity) stated that CCP “. . . has expanded Wallet Wizard into seven US states . . .” I think there were about two in February, Illinois and Missouri. Seven is target, and I have seen that Wallet Wizard is now offered in Utah. I hope the next Announcement updates the information.
The FNArena material stated, “While the economic outlook appears positive for 2022, regulation remains the main threat, particularly as interest rates and aggregate household debt rises.” There is a positive in this regulatory threat for CCP, because it affects the competitors more than it affects CCP, and smaller players are more likely to be pushed out of the sector by regulatory imposts, than are the likes of Encore, PRA and CCP. Encore routinely makes this point in its preentations, as the FNArena pieces did too – to wit, “Credit Corp has been able to muscle out weaker domestic competitors in a relatively fragmented market, and is set to take on the US’s three big guns.”
My SP range then was $30 to $35, and I sold 3,000 CPA at $35.52, but kept the 17,100 CCP shares in my SMSF portfolio. According to the FNArena piece, Macquarrie had a target price of $38.30; Cannacord Genuity, $38.30; and Ord Minnet, $36.00. These three share prices were 12-month target prices, so they may transpire to be correct. My range was an at-that-time range, and I'll change it after I have seen the FY22 results. I had at that time the belief that CCP would get to $40, but not soon – 1/01/24 for the want of a date.
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)