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COG - Consolidated Operations Group

Joe Blow

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Wallace Absolute Return Limited (WAB) is an investment company. The investments for the Company predominately comprises members of the S&P/ASX 200 Index, bills of exchange, other negotiable investments, debentures and other permitted investments.

http://www.wallaceabsolutereturn.com.au
 

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On April 21st, 2017, Armidale Investment Corporation Limited (AIK) changed its name and ASX code to Consolidated Operations Group Limited (COG).
 
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NSC invested more than 22% on COG. This company also rumoured to have a strategic move on loan issue in 2020.
Any one has done research on this company ?
From free website of motley fool (April 2019) it says :
" For readers unfamiliar with this one, it’s a financing and leasing business. Naos pointed to the fact that COG has received a number of informal and preliminary enquiries as a reason why COG’s momentum is one to keep an eye on.

The potential for COG to launch a white-label finance product that is funded or partnered with a big four bank for prime auto loans is also exciting, according to Naos.

Anything in the loan space is a very interesting opportunity at the moment. Whilst the royal commission is causing banks to be much more cautious about lending these days, the slowing Australian economy could mean a rise of loans going bad."
DNH
 
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Any one has done research on this company ?
Know nothing about this one Miner, but the Chart is very unhappy at the moment:(

I have trouble making sense of Fundamentals to be honest … yesterdays 2019FY results look pretty good to me:eek: yet the Stock has been trending down heavily. There are a lot of shares on issue but not a lot of trading Volume.

Technically, it had a peek under the long dated lows late last week … If it slips back under that low 8 cent area, it could be a slippery slope:oops:

Fundamentally to my untrained eye, it looks like it should be doing the opposite. Perhaps someone versed in reading balance sheets could shed some light on why it is failing:confused:
 
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Know nothing about this one Miner, but the Chart is very unhappy at the moment:(

I have trouble making sense of Fundamentals to be honest … yesterdays 2019FY results look pretty good to me:eek: yet the Stock has been trending down heavily. There are a lot of shares on issue but not a lot of trading Volume.

Technically, it had a peek under the long dated lows late last week … If it slips back under that low 8 cent area, it could be a slippery slope:oops:

Fundamentally to my untrained eye, it looks like it should be doing the opposite. Perhaps someone versed in reading balance sheets could shed some light on why it is failing:confused:
Thanks Barney for your analysis
 
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was trundling along, then it fell off the Covid cliff.

Naos (NCC) think the rebuild has begun:
"After withdrawing guidance in late March and announcing a significant reduction in business activities for their leasing business, COG updated the market on the financial expectations for their Finance Broker & Aggregation segment (FB&A). This division is expected to earn an EBITDA after non-controlling interests of approximately $10.50 million. We believe this highlights the resilient nature of finance brokers as FY20 EBITDA should only be down ~7.50% compared to FY19, even with the significant disruption that has occurred due to COVID-19. We would also expect that close to 100% of the after-tax earnings from this business will flow through to free cash due to low working capital requirements and minimal capex spend.

"COG also announced that they have entered into an agreement to increase their shareholding in Westlawn Finance Group to 75%. We believe that this is a highly strategic acquisition as Westlawn is a well-regarded brand in the mid-north coast region, which has enabled their debenture offering to maintain a size of $200 million even in these times of significant market volatility."

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Interestingly I have been looking into COG once got an update from NCC reports. The volume is rather low for COG and prices have been going north for last few days. Could this investment be lucky duck for NCC as well ? Do not hold
 
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and now NCC spins a comparison, with Plenti PLT on the boards
Continuing the theme of board renewal, COG announced the appointment of Peter Rollason as an Independent Director. Peter was formerly the CFO of Liberty Financial as well as a former Partner of Deloitte Australia within their M&A advisory division. We believe Peter is an ideal Director to assist with the growth of Westlawn Finance of which COG has now moved to a majority ownership position.
Interestingly, as a rough comparison, Plenti (ASX: PLT) listed in October with a market capitalisation of $200 million. Although PLT provides loans to a more consumer focused target market than COG, they fund their loans through a managed funds model, which COG now have access to following the Westlawn acquisition. PLT is still loss making, whereas Westlawn has a $240 million debenture book and has historically made $4-$6 million NPBT and was acquired by COG for an implied value of $38 million, of which $14 million consists of regulatory capital on the Westlawn balance sheet.
--- and, growth?
 
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