We had written yesterday that Credit Corp Group Limited (ASX: CCP) had entered a trading halt after the book of an anonymous report by вЂCheckmate Research'. After the company's reaction, and its particular come back to trade today, the Credit Corp share cost has dropped 12% to $16.64.
I became delivered a duplicate regarding the report that is 37-page night by Motley Fool analyst Ed Vesely. Please be aware that a lot of of this allegations included in the report happen refused by Credit Corp as wrong and a lot of associated with the report is merely viewpoint.
Nevertheless, in its report, Checkmate contends that:
- Credit Corp's primary company is a payday lender that is avoiding category as a payday loan provider via its usage of a loophole that is legal
- Avoiding category as a payday loan provider presumably brings regulatory or financing advantageous assets 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 loan providers
- Checkmate accuses Credit Corp of so-called вЂearnings administration' because of its too smooth profit that is gross, considering the fact that alterations in the business enterprise have never lead to an important improvement in margins within the last several years
- Checkmate says that Credit Corp will probably be worth ten dollars a share in the place of its last traded cost of $18.84