Financial review has CCV at a PE of 7.3 at 38.5 cents. Thats the sort of PE ratio for a shrinking company rather than a growing company.
Even if SA and WA followed suit with Qld to limit interest rates to 48% and that caused a stall in the growth of pay day lending in Australia then there is still around 40-50% of the business in the UK which grew 32.5% last year.
Theres an argument that limiting interest rates in Qld will in fact benefit the cash converters business model rather than hinder them. At a capped interest rate the business with the best information systems for managing large numbers of small transactions, and with the lowest overheads is likely to win out. Although margins would decrease, their market share is likely to increase. In addition if the unsecured lending market drops away in Queensland, the customers still need the loan, so you would simply expect the secured lending market to increase, or the minimum loan amount to increase.
------------------ My opinions are based on my own research. Please make your judgements on your own research. ------------------
CCV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)