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
CLH Price at posting:
$2.09 Sentiment: Buy Disclosure: Held
