It seems strange that a guy who gives CCP a positive rap baulked at buying at about $6.50. I wanted to buy then, but got distracted, and bought two days later at $11.09.
On the author's view that FY2021 should be a good year for buying PDLs, no mention was made to the changed competitive scene in Australasia. Baycorp has opened up NZ for CCP, and the woes of CLH and PNC are going to weaken their ability to spoil the party. As an aside, to service Australasia, CCP has collection centres in Sydney, Melbourne, Adelaide, Perth, Auckland and Manila. I wonder if there is a manifested tendency for experienced staff to want to skip out of competitors and join CCP.
CCP will under promise in the AGM Presentation
On the comment, “Beregi might be strategically under-promising purchases to avoid driving up ledger prices - if you're buying a house at auction, telling everyone how eager you are isn't a great idea.” I suspect that in the AGM presentation, CCP will tend to understate what expects to happen for this reason, Also, in respect of pre-Covid PDL acquisitions, CCP would also not want to say anything to suggest it overreacted to Covid-19. Management's style is to say little, and let the performance metrics tell the story when published.
Low compliance threat
Although this is tangential, I looked at some "complaints" information tonight, so I may as well post, what I found.
CCP's FY2020 Annual Report stated that it has 1.7million customers. Considering how easy it is to lodge a complaint with AFCA, that a minute fraction of these customers complain to AFCA should not surprise anybody. In Australia, 2,563 complaints were lodged with AFCA for all debt collectors in FY2020. CCP has about 1 complaint for every $1m collected in Australia, and nearly 80% of these complaints are promptly resolved. The total compensation paid to complainants in Fy20 was $15,400, about .005% of CCP's collections.
At https://data.afca.org.au/at-a-glance you can see 96 complaints were lodged in respect of CCP as a debt collector – significantly less than complaints for CCP's competitors. 79 of the CCP-related complaints were resolved at registration and referral. 15 complaints progressed to EDR. The 3-complaint gap would be an in-the-pipeline issue (neither resolved initially or nor progressed). Total compensation CCP paid to complainants in Fy20 was $15,400.
CCP Price at posting:
$16.90 Sentiment: Hold Disclosure: Held
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