News: CCP Credit Corp Group Looks To Raise Up To A$150 Mln, page-92

Roy98

One thing that has cost me about $1m over the decade or so that I have been in the market is management incompetence and mendacity, mainly the latter. Ethics is not a strong point of ASX-listed companies.

I found the words I sought that CCP uses to describe its PDL-buying approach – namely, “In our dealings with clients, the sellers of debts, it is our policy to always offer the highest prices possible which will still enable us to meet our required rate of return.”

Rather than pouring over historical Annual Reports, as I suggested, to get a feel for the past, I suggest looking at the Chairman's Address over many years. These give an easy-to-read picture of the long process that CCP undertook to diversify into both Lending and the USA PDL market. There you can see that the desire to ramp up CCP's business recently, arose before Covid-19, and the current capital raising is, IMO, simply to seize the day, and not retreat into run-off mode as a survival tactic.

The cause of increased supply of PDLs recently, and expected to continue, arose because easy credit became available to the masses a few years ago. The reason why PDL buyers cannot react to that is that many PDL buyers have damaged their companies by excessive debt leverage and by bringing forward profit recognition, mainly by under amortising PDLs, to look good in the short term for varius dishonest reasons.

Announcements back to January 2013 are at https://www.creditcorpgroup.com.au/investors/asx-announcements/ .

Chairman's addresses over that time are:
https://www.creditcorpgroup.com.au/media/1512/2019-agm-chairmans-address-to-shareholders.pdf https://www.creditcorpgroup.com.au/media/1457/2018-agm-chairmans-address-to-shareholders.pdf
https://www.creditcorpgroup.com.au/media/1414/chairmans-address-to-shareholders-agm-2017.pdf
https://www.creditcorpgroup.com.au/media/1362/20161103_chairmans-address-to-shareholders.pdf
https://www.creditcorpgroup.com.au/media/1234/20151105_chairman-address-to-shareholders.pdf
https://www.creditcorpgroup.com.au/media/1151/20141106_chairmans-address-to-shareholders.pdf
https://www.creditcorpgroup.com.au/media/1114/20131107_chairmans-address-to-shareholders.pdf