Good buying CCP at that price definitely currently oversold and...

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spider5

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04/05/22

09:27

Post #: 61188726
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Originally posted by Pioupiou: ↑

Spider

I agree what you wrote, and had thought about it before when CCP bought books from competitors, and again when writing my recemt post here. One can pay a premium for a secondary portfolio of debtors ledgers that has been processed to the point where there is an existing set of performing debtors who have agreed to repayment plans - perhaps all of them, with the non-payers being excluded from the deal. About 80% of CCP's collections come from debtors who have agreed to loan repayment plans.

As I do not hold PNC, and I had written a long post, I did not pursue the issue of performing PDLs, nor use the abreviation PDL, because that is CCP-speak. Other debt buyers use different terminology - for instance, Intrum (in Sweden) refers to "Portfolio Investments".

As an aside, I bought 300 CCP today at $26.04 on the basis that my gut-feel is that CCP should not fall below $30. It is CCP's non-PDL initiatives, and the USA PDL business that inclines me to stay in CCP. Also, I know it well, having watched it closely for years. Also, CCP always delivers at least what it promises, and it updates those guidances three times a year.

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Good buying CCP at that price definitely currently oversold and at low RSI - good indicators. PNC indicators do not compare. My feeling is that PNC need to confirm their current forecasting with actual performance before investors will show confidence towards them. I do think that the market is pricing them that way at the moment. Those with the appetite for risk should note that the larger purchases recently (placement and CEO purchases) have been at 55c a 12.2% premium to the current price and they do have some momentum with their PDL purchasing.

PNC Price at posting: 49.0¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

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