“On Wednesday this week, a company that has seen highs and lows in recent years — Credit Corp Group — saw a 5.82% rise on the day to end at $15.45,” Peter said.
“But before the Coronavirus crash, it hovered around $37.
“It recovered after its share price fell to $9.83 on 20 March 2020, as the pandemic panic started to ease, to peak at close to $34 in January 2022.
“Since the era of 13 interest rate rises struck, this company’s share price has slumped.
Credit Corp Group (CCP)
“This downtrend wasn’t helped by CCP’s foray into the US market.
“The AFR reported in October 2023: “Shares in Australian debt collecting giant Credit Corp have slumped almost a third after the company took a tumble on chasing money owed in the US.
“Sydney-based Credit Corp has a sizeable US operation, and more Americans were dumping debt repayment plans, the company said on Wednesday.”
However, there has been an uptrend for five days adding up to an 8.57% gain, so the question is this: has this stock turned the corner?
“The analysts think so, with the consensus rise from FNArena’s survey showing us an 18.1% rise is tipped, and three out of three company watchers give the company the thumbs up.
“So, what does CCP do?
“The company’s website sums it up simply as:
Our core business specialises in debt purchase and debt collection services. We purchase past-due consumer and small business debts from major banks, finance companies, telecommunication companies and utility providers in Australia, New Zealand and the United States of America.
“Effectively, they buy the debt pretty cheaply and then do their best to get the bad-paying customers of these big companies to pay up.
“Tipranks.com — a US-based rater of companies — has this to say about CCP: Based on 4 Wall Street analysts offering 12 month price targets for Credit Corp Group Limited in the last 3 months. The average price target is A$18.67, with a high forecast of A$20.90 and a low forecast of A$15.80. The average price target represents a 22.09% change from the last price of A$15.29.
The prospect of falling interest rates is undoubtedly a plus for CCP as it chases debtors who soon might be under less pressure,” Peter said.
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