Checkmate Research, page-24

Has anyone seen the report? It is available on Scrib’d. Here is the summary and the stated objective (keep in mind no name or copyright is assigned to the document, publishing parts here doesn’t constitute it being accurate):
investment opinion - summary:
1) CCP is the only debt purchaser/collector with a payday lending business globally. Our analysis
shows that the business model combining debt purchasing and payday lending has not been
tested through recessions. In our view this business model may underperform “pure” debt
purchasers during a recession.
2) Wallet Wizard (CCP’s lending business) uses a loophole in legislation to avoid being designated
as a payday lender. In our opinion Westpac is likely to pull funding from CCP which will face the need to either quit its payday lending business or to urgently seek alternative funding. Both scenarios would be strongly negative for CCP’s share price.
3) Wallet Wizard, CCP’s payday lending business, has one of the lowest lending criteria among the leading payday loan market players. The company lends to unemployed, discharged
bankrupts, people employed unofficially (“Cash-in-hand”), recipients of government benefits
and even to people who have negative capacity to repay.
4) In our opinion Wallet Wizard may be violating responsible lending obligations by issuing loans
to people who are not suitable. Such business practices may result in an investigation by the
Australian Securities and Investments Commission (ASIC). In 2016 ASIC ordered Cash Converters, a competitor of CCP in a payday lending business, to pay over AU$12M for the violation of
responsible lending obligations.
5) We see numerous evidence of earnings management: reported net margin is too smooth when compared to peers, ASX-listed small cap companies and CCP’s own history; ratio of collections to amortization is too smooth when compared to peers and CCP’s own history; loan loss provisionexpense/interest income ratio was unchanged at 44.4% for three consecutive years (FY 2015-2017); in FY 2016 CCP transferred AU$50M of assets from the lending segment to the PDL segment without providing any disclosures; the company understated losses at its US debt purchasing business at least in FY 2015 and FY 2017.
6) We find many reasons why investors should be skeptical about CCP’s system of controls,
especially about the company’s auditor Hall Chadwick.

Stated objective on front page:
Credit Corp: The Group does not offer any contentious products such as Small Amount Credit Contracts (SACCs) or ‘payday loans’.
Yet, Credit Corp competes with payday lenders, its loans have many features of payday loans, while consumers, journalists and even the marketing department of Credit Corp itself refer to the Company as a payday lender.
Our analysis shows that Credit Corp exploits a loophole in the law to avoid regulatory scrutiny and to access cheap bank funding unlike other payday lenders.
WE CALL WESTPAC TO FOLLOW ITS POLICY ON PAYDAY LENDERS AND TO PULL FINANCING FROM CREDIT CORP SIMILAR TO WHAT THE BANK DID TO OTHER PAYDAY LENDERS, CASH CONVERTERS AND
MONEY3 CORP.

Best of Luck
Lost