Credit Corp Group Limited is an Australian debt buyer they buy debts from bank, telco and other commercials ( at a discount of course) and try to collect them back by provide different solutions, such as offering flexibility.
Their stock price has halved due to covid. Its true that people are facing more financial burden during covid and present high risk of defaulting their debt, but defaulting hurts their personal borrow rating for life and its a situation that the debtors would try to pay and avoid.
On the company side, they are also very cautious in buying only good quality debt based on big data. All-in-all both the supply and demand side of this business tends to drive this company into profitability even under the current difficult time.
Technically, the stock has been consolidating within the 2 dollar trading range of 17-19 most of the time. There is a recent trend to break out upward to test the recent high of $20.94. If we look at the steadily up-trending 50days avg @17.62 as cut loss point, the risk-reward ratio is super lucrative to give this stock a very strong buy.
The pre-covid high for CCP is @37.99, and even if we just recover 50% of that loss from now it gives us close to 50% of profit target with only 10% of downsize.
Their stock price has halved due to covid. Its true that people are facing more financial burden during covid and present high risk of defaulting their debt, but defaulting hurts their personal borrow rating for life and its a situation that the debtors would try to pay and avoid.
On the company side, they are also very cautious in buying only good quality debt based on big data. All-in-all both the supply and demand side of this business tends to drive this company into profitability even under the current difficult time.
Technically, the stock has been consolidating within the 2 dollar trading range of 17-19 most of the time. There is a recent trend to break out upward to test the recent high of $20.94. If we look at the steadily up-trending 50days avg @17.62 as cut loss point, the risk-reward ratio is super lucrative to give this stock a very strong buy.
The pre-covid high for CCP is @37.99, and even if we just recover 50% of that loss from now it gives us close to 50% of profit target with only 10% of downsize.
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