When I have time, probably this evening, I'll answer the questions raised by Investing101 and Crazypunter in more detail than my off-the-top-of-my-head answers below.
Investing101 – Why CCP may be preferable to CLH.
CCP has a higher ROE and less debt, and so it can internally fund growth. These things, its position as the dominant player in the Australian PDL game, and its bad experience in 2007-2008 caused by debt-fueled growth, make CCP a safer bet in my opinion. We covered this about three weeks ago in answer to the same question by Zwu, including referencing a comparative analysis that can be found at
http://www.**promotion blocked**.au/2015/07/01/i...ted-or-collection-house-limited-a-better-buy/
Crazypunter – punting on the SP movement
My approach to CCP is as a long-term investor, not as a short-term punter. Had I taken the trouble to learn that US instos had significant holdings, and cogitated on what they might do in the falling-AUD setting, especially in the light of them missing out on franking credits, and then correctly concluded the price would drop, I would have sold out at the high of circa $13, and bought in again on the recent dip. Alas, I was not smart enough to do that. As an aside, I bought 13000 in 2014 at $9.607, and 1200 recently at $9.46.
I must go, so when I have time today, I'll revisit this matter, and touch on my inveting approach to stocks like CCP.
may have sold out thought
(20min delay)