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22.0¢ collection house limited

buying CLH at $1.635, page-82

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AnDy62

2,773 Posts.

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18/02/16

10:55

Post #: 17051022
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Originally posted by DSD ↑

Because i needed cash elsewhere i sold half my CLH holding a few days ago at $1.62 for a small profit. Remainder held i paid 1.635. I had plenty alerts trigger when CLH wentbelow 1.50 and i quickly read the report. The bad news is 2H will be better but not as good as pcp. But this time last yr SP was $2.41! Sure, earnings have dropped but main hit is from 'one offs'. So i doubled-up at 1.475 which i think was day's low.

My thinking is that the firm's methodology remains sound. I'm pleased it is holding back on buying debt it considers 'too expensive'. Heck, its not as if debt will be in short supply. I expect bad debt levels to jump as the economy weakens. But clincher for me is the ATO contract. I understood it started 1st January but it seems 1st April is the date. Recovering money for the ATO which enforces huge penanlties on recalcitrant taxpayers is far easier than chasing down homeless no hopers who have shot through after buying a pile of furniture at Harvey Norman. Yes, the earning from ATO will only appear in 1HFY17, but am ok re doubling up today. Plus the div doesn't hurt either.

Anyone stick their toe in the water?

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Not throwing good money after bad. Not an inspiring report. Will hope for a recovery.

CLH Price at posting: $1.43 Sentiment: Hold Disclosure: Held
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