The biggest red flag I can see from the report are the smooth net margins and higher net margins then peers.
Will be interesting to see how the market views this once its begins trading again.
"CCP net margins are not just smoother, they are also higher than the net margins of peers (the only exception is a Sweden-based debt purchaser Intrum Justitia, which has reported high net margins similar to CCP but with higher volatility)."
Harry Markopolos, a US forensic accountant, thinks investors should be skeptical when dealing with the outstanding performance:
“Focus on the manager or the company that is head and shoulders above the rest. Whenever
somebody has outstanding performance, Wall Street assumes genius. I assume fraud until genius
is proven. Look for the outperformance and investigate there… If the numbers are too good to be true, they rarely are”.
CCP Price at posting:
$18.84 Sentiment: None Disclosure: Not Held
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