Savvy Trades and Investments

[researcher59]

CPSS always trades at a very low multiple, especially with these negative earnings and revenue trends, along with rising interest rates.

Book value is rather misleading because of the high debt to equity ratio ... yes book value is $7.30 per share but there's also $87 per share of debt .... so almost 12x more debt than equity. That means if assets are just slightly overstated on quality assessment, equity evaporates rather quickly on reassessment.

Good luck, but I don't find it attractive at $3.50. If results rebound in Q2 my opinion might change. At least delinquencies declined, so that's a nice positive.