CCP does not buy low quality PDLs, so although there may be a small difference in quality, I do not think the average quality is so different that it explains the difference between the two companies. Bear in mind that lower quality PDLs are cheaper, so that mitigates the difference – perhaps eliminates it. Further, CCP would target the same quality PDLs that PNC buys, if there were a patent reason to do so.
It is possible that PNC is better at collecting than CCP is, even if the PDL qualities are equal, but I do not think there would be much difference between the efficacy of the collections functions of the two companies.
I suspect that the difference of reported profitability in any period lies in the accounting for profit. In the long haul accounting treatment cannot create a profit, nor hide profits forever, but it occasions what I call time-shifting. This is where the explanatory $100x over time treatment that I hoped somebody would be able to supply would be useful.
CCP Price at posting:
$22.75 Sentiment: Hold Disclosure: Held
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