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Chou Associates 13-F Ending June 30th


Parsad
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I did not know he had Compucredit.  I have tried several times to find downside protection, but receivables keep going down and it is not clear to me how to value the residual value of the credit card securitizations. There was a VIC write-up but I was disappointed ... no smoking gun

 

Has anyone seen/prepared a clear thesis for Compucredit?

 

 

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I did not know he had Compucredit.  I have tried several times to find downside protection, but receivables keep going down and it is not clear to me how to value the residual value of the credit card securitizations. There was a VIC write-up but I was disappointed ... no smoking gun

 

Has anyone seen/prepared a clear thesis for Compucredit?

Just took a quick glance What does the Aug '11 write-up focus on? It seems like with the recent sale of their retail micro-loans, they will be left with the auto and credit card run-off portfolios, a stack of cash as well as the charged-off receivables portfolio. If they actually intend to run down everything and liquidate there may be upside given that it's trading below book. But if they keep it alive, Opex may eat the value given that it's pretty difficult to slash Opex at the same rate as a run-off portfolio (though the sale of their retail locations was probably a decent move in that regard).

 

-This is not an offer or recommendation to buy or sell any securities.-

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