Trying to understand CLH, page-3

First 3 Last

Share
Profile

Follow
dantdm2017

121 Posts.

12

25/01/20

10:03

Post #: 42569246
Share

Originally posted by yourdaddy: ↑

Hey guys,

I've sat on the sidelines watching this one for many years, I'm a value-based investor, this security presents itself as potentially the greatest value proposition on the ASX today. So what's going on?

Book value - .6 ($1.65)
ROE - 14.1%
Cash - 54.1 million
Operating profit - 51.3 million
And of course, paying income (if you're into that).

All very decent numbers that most listed companies aren't achieving.

Most of these figures are roughly 50% of its closest listed competitor Credit Corp Group (CCP), however, while CCP has taken off from .40 to $33 in the last 12 years. Collection House seems to have just made decent cash, paid a solid income and sat for the most part stagnate.

So I guess my question is for those that have followed this company, why does that market neglect these above-average returns? Do you put this down to poor management, over-diversification or something else?

Without this missing piece, I find it hard to press the buy button even at these types of valuations.

Appreciate your feedback in advance.

Expand

Look at cash metrics. Plenty of tips in prior threads why market has shunned this. Eg https://hotcopper.com.au/threads/ann-clh-makes-8-5-million-investment-in-volt-corporation.4610405/page-39?post_id=42539066

CLH Price at posting: $1.07 Sentiment: Sell Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

FTL

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Most investors will get this earnings season wrong. Will you?

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

ASE

Astute delivers high-grade lithium hits at Red Mountain

RNU

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

SGQ

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

First 3 Last

Add to My Watchlist

What is My Watchlist?

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.

Trying to understand CLH, page-3

Top Stories

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Most investors will get this earnings season wrong. Will you?

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

Astute delivers high-grade lithium hits at Red Mountain

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

Featured News