What is the best part of the economic cycle for CCP's business? On one hand, a deep or deepening recession should give them a lot of product to buy, at the best prices. On the other hand, worsening conditions for consumers should make it much harder to collect, potentially making them run losses that may not be reversible in future years.
Maybe those who have been with the stock for a long time can reflect on this and give us some idea on where CreditCorp does best in the cycle?
I am also wondering what metrics should we be most focused on in evaluating their business? Their financials are different than any other type of company I have evaluated, because they have a long time between when they buy bad debt and when they show a profit from it. There is really tremendous opportunity for them to "game" their results by simply adjusting their reserves for future losses.
CCP Price at posting:
$1.72 Sentiment: LT Buy Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)