Today's AFR P23-Portfolio Section titled: Strong Performers in Weak Economy By Marianna Papadakis.
When debt collection agencies, pawn brokers and electrical goods rental stocks gain, you know the domestic economy is not tracking as well as the general retail industry would like.
People lose jobs, families seek credit and individuals start thinking about hocking television or delaying the purchase of a fridge.
Armytage Private chairman Lee IaFrate said stocks such as Thorn Group, Cash Convedrters, Collection House and Credit Corp were bellwethers for the "hard core" economy.
CCV: CCV olans to grow its personal loans and small cash administration business as well as expand to Britain. Management is buying back franchise stores in Australia at lower multiples than that for CCV on the ASX largely, through equity raising, Mr Hudak said.
With a reasonable market share, it was driving growth through its Australian personal loans books from $40m in 2011 to $84.2m in 2012.
"It has significant opportunities in an envionment of unemployment which could rise, and people become cash strapped. One risk is new national laws on payday loans from July 1."
CCV Price at posting:
$1.16 Sentiment: Buy Disclosure: Held
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