questions to put to the directors at the agm

Good to see my last few postings got a little bit of debate going.

While I am confident that this company has a bright future in Australia and the UK, I appreciate that not every investor holds a similar amount of confidence. I am aware of two stock broking houses that cover CCV. Six months ago they were both rating the stock as a strong buy. These days one recommends a strong buy and the other a moderate sell. It might get down to whether you are a glass half full or half empty type of person. Only time will tell who was right.

Nobody likes losing money. I have lost a few dollars with this one lately; my beautiful paper profits are certainly gone. I work on the theory that if a stock keeps you awake at night, sell out and do it fast. I am sleeping soundly at the moment with this one and therefore will not be selling at this stage.

I noticed in Brisbane the other day two council buses in succession with cash converter advertising on the side. That got me thinking, I decided to look at the financials for the company and was pleasantly surprised with the growth in advertising and marketing expenditure.

In financial year 2009, an amount of $1,227,387 was expensed on advertising and marketing. In financial year 2011, the figure had risen to $7,605,033. That is a 620% increase in just two years. That is a massive increase. No break up is available between Australia and the UK. I have a hunch that a large portion is flowing into the UK. I noted in a previous posting that they are sponsoring two football sides in the UK this year.

CCV is certainly not afraid to invest in its brand. They do not appear to be tightening their belts when it comes to advertising which I take as a good sign in the current times.

Bring on the AGM next month and hopefully we will have a current update on how the business is really travelling.

Is anybody from Perth planning to attend the AGM? Perhaps as a group we could come up with a few questions to put to the directors and have somebody report back.

Take care and convert your thinking.