I may be a week to early, but to me yesterday's low of $8.52, which coincidentally happened to be April fools day, has the feel of a bottom. Today we are back to $8.69 and the buy ladder is looking a lot stronger.
It will the fundamentals that carry CCP higher from here. The 2012/13 PE is 11.54 and the 2013/14 PE will be closer to 11. With the profits from the lending businesses chipping in next year the profits will be higher again and 2014/15 PE should be below 10.
And you get a dividend return of 4.6%, which should increase to over 5.0% next year. With income like this CCP is clearly an under valued 'value' share.
Assuming the company stays on it's current track, I think there is a lot to like here. Selling at these prices seems silly, buying makes sense, and a return to $10.00 in the current financial year is on the cards.
K
CCP Price at posting:
$8.69 Sentiment: Buy Disclosure: Held
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