CLH 0.00% 6.8¢ collection house limited

Oversold, page-5

  1. 20,409 Posts.
    lightbulb Created with Sketch. 1991

    Holst report estimates 20m in revenue over two years .lets assume a 3.5 m profit per 10 m that should add around 35 m to market cap on a PE of 10.
    Strategically though the deal is very important as it diversifies revenue , decreases reliance on PDLs and brings in one of the biggest if not the biggest debt clients in Australia so on that regard s estate of 50m market cap would be justified .
    The CCP outlook and today's news should go a long way and alleviating any concerns and allowing CLH a strong steady growth stock with great dividends it has been seen for a while . I was fortunate to accumulate a position in the high high 180s and bought more today at 189.5 and 190 as soon as news was released and again at 199 as i internalised the news

    I expect it to settle in the 2.20-2.25 region next week
 
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