We published yesterday that Credit Corp Group Limited (ASX: CCP) had entered a trading halt after the book of an report that is anonymous вЂCheckmate Research’. After the organization’s reaction, and its own come back to trade today, the Credit Corp share cost has dropped 12% to $16.64.
I became sent a duplicate for the report that is 37-page night by Motley Fool analyst Ed Vesely. Take note that a lot of regarding the allegations included in the report have now been refused by Credit Corp as wrong & most regarding the report is simply viewpoint.
Nonetheless, with its report, Checkmate contends that:
- Credit Corp’s primary company is a payday lender this is certainly avoiding category as a payday loan provider via its utilization of a loophole that is legal
- Avoiding category as a payday loan provider presumably brings regulatory or capital advantages to Credit Corp
- Credit Corp’s bank Westpac Banking Corp(ASX: WBC) has cut capital with other lenders that are payday Cash Converters Overseas Ltd(ASX: CCV) and Money3 Corporation Limited(ASX: MNY)
- Checkmate says that Westpac should stop using the services of Credit Corp, just as so it has along with other payday lenders
- Checkmate accuses Credit Corp of so-called вЂearnings management’ because of its too smooth gross income, considering the fact that alterations in the company never have led to a significant improvement in margins within the last couple of years
- Checkmate says that Credit Corp will probably be worth ten dollars a share in the place of its last price that is traded of18.84
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