Trying to understand CLH, page-3

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dantdm2017

121 Posts.

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25/01/20

10:03

Post #: 42569246
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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.

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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
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0 Great analysis

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Trying to understand CLH, page-3

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