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CCV - Cash Converters

Discussion in 'Stocks 0-H' started by Trader Paul, Jan 6, 2008.

  1. Rainman

    Rainman

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    Does anyone like this stock for its turnaround possibilities? I have taken a nibble now that the legal horizon has cleared somewhat.

    I hate its business but it looks cheap.
     
  2. Admiral Rimmer

    Admiral Rimmer

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    Given its current price, no lol

    Lot of uncertainty around how its transition to MACC will go. The legal issues should be behind them soon. It's more how much of Money 3's market are they going to be able to make profit in that worries me.

    I can't see them breaking through a 1.00 anytime soon that's for sure.
     
  3. Rainman

    Rainman

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    Let's check back in a year's time.

    CCV has provided guidance of $20 million to $23 million of NPAT for 2017. Its market cap is presently $170 million.

    MNY made $20.1 million in NPAT last year. It is guiding to $26 million in earnings for 2017. MNY has a present market cap of $261 million.

    Why do I want to spend $91 million more for at most $6 million more in earnings?
     
  4. Admiral Rimmer

    Admiral Rimmer

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    You could well be right. Only time will tell how they go meeting guidance.

    Market seemed to recently factor in legislative changes which wont take effect until 18 at the earliest, so potential in that I guess.
     
  5. WRiley

    WRiley

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    Keen here.
     
  6. The Triangle

    The Triangle

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    I'm in. I think this capital raising will significantly change the company. Bonds will be wiped off the map. That saves $5m a year in costs + the admin costs + renegotiating costs if they had decided to get new ones. It also leaves a massive cash balance intact which will surely be enough to cover the class action (which will hopefully be resolved in the next 6 months). Expect in 12 months time to see earnings 4+ cents per share range.
     
  7. The Triangle

    The Triangle

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    Has not been a very good performer. Frustrating when you see twenty trades today for 12 shares each... I've significantly increased my holding this week and look forward to the new CEO starting Monday. EBITDA looking ok pos adjustments and hopefully class action will be resolved before the end of the financial year (anyone know what to expect? $35 million is my guess?)
     
    Smurf1976 likes this.
  8. Zaxon

    Zaxon The voice of reason

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    It surprises me that with the belief that "payday loans" are ripping people off, how poorly CCV is doing operating in this space.
     
  9. sptrawler

    sptrawler

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    The problem is they can't sell stuff cheaper than you can buy new.
     
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