CKL will likely report to the market early August. While second half is likely to be seasonally weaker than first half, there is a good chance they will beat last years underlying profit and report a continued growth outlook.
More compelling is the likely growth in dividend levels as the company finishes the period of aggressive investment that has occurred post-CHH acquisition. CKL already trades on low normalised earnings multiples and a return to 50% payout levels would produce attractive yields.
Management have demonstrated a proven track record in growth and acquisitions and, with the CHH acquisition now close to fully-digested, the market cap should begin to more fully reflect the growth in the business.
I currently have a 12 month price target of $1.10 - $1.18.
CKL Price at posting:
71.0¢ Sentiment: Buy Disclosure: Held
