I’m adding CCRT to my watch list. This old Foolish favourite now languishing in the dog house, is starting to hit technical signals. So time for a fundie catch up. It’s good to be prepared. First though let cover those technical signals?

Technically

- MACD is rising and close to turning positive.
- RSI, relative strength, is above 50 and rising.
- Price close to rising above 50 day.

Fundamental

If only fundie could be as fast as the technical. That’s another reason why I fell into Fusion Investing. A thirty second glance at a chart, conveys a lot of information. I love the new Wiki charts and will annotate CCRT as I go. The annotations let you layer fundamental reasons on top of the price action.

Insiders own a good stake in the business, 44%, and have generally worked for the long term success of the business.
Srinivasan Krishnakumar, President of Credit Cards, has been buying over the last few days, buying $240k since November 11.

• Q3 Earnings Conference Call
  Summary “Today we reported a GAAP net loss of $32.3 million or $0.69 per share and a managed net loss of $33.7 million or $0.72 per share…include a pre-tax non-cash impairment charge of $29.2 million we took during the quarter to write off goodwill within our auto finance segment..were able to obtain an extension of that facility and lock in pricing and advance rate levels through October, 2010….Our 60 plus day delinquency rate was 13.1% at..Summarizing again for your liquidity position we expect our cash position and our anticipated cash flows generated from the business should allow us to continue to meet all of our obligations and provide us with some dry capital for opportunities such as the ones we previously discussed.[buying their own convertible debt and stock, plus some other distressed cc assets that are in their wheelhouse]…Although managing to generate positive cash flows represents short-term earnings sacrifices this is the only prudent course of action in the current environment and we remain focused on preserving as much as we can of the $14.82 book value per share that we have worked so hard to create over the years. ”
  Time to dig into the balance sheet. How good is that book value?
• Earnings History Summary
• Q3 10-Q Summary
• Earnings report
• Earnings Announcement

Thesis

CCRT is a cyclical debt collector. They have survived smaller liquidity problems and if they survive this time, then ten bags are possible. Like LEAR Corp, CCRT is worth a place on a potential ten bagger watch list.

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