# CCV - Cash Converters



## Trader Paul (6 January 2008)

Hi folks,

CCV ... could well be strong this week, as a strong positive cycle is triggered, by a lunar
aspect on 07012008 and a minor cycle comes into play, around 11012008 ...  which is also,
one year from the 2007 high, on 12012007 ... 

..... in the meantime, there has also been a 50% retracement, in the CCV price.

happy days

  paul



=====


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## michael_selway (6 January 2008)

Trader Paul said:


> Hi folks,
> 
> CCV ... could well be strong this week, as a strong positive cycle is triggered, by a lunar
> aspect on 07012008 and a minor cycle comes into play, around 11012008 ...  which is also,
> ...




Hi Paul, is thsi company affected by subrime?

*Business Description 
Cash Converters Internationals (CCV) core business is as franchiser of the Cash Converters stores, a retailer of second hand goods. As at June 2006, CCV operated a total of 450 stores worldwide in Australia the UK, US, Europe, Singapore, Thailand and Malaysia. *

thx

MS


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## exberliner1 (8 January 2008)

yes CCV is affected by sub prime.... CCV is a global group of franchised pawn shops so as economies deteriorate CCv will get more customers both as sellers to raise cash and as buyers buying cheaper secondhand stuff.

Info source.... I used to have a gf who worked for them in Kilburn in London.

EB


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## eladamrine (18 January 2009)

What do you guys make of the goodwill listed as assets in cash converter's 2008 fy report, totalling 43 million? 


> Allocation of goodwill to cash-generating units
> Goodwill has been allocated for impairment testing purposes to the following cash-generating units:
> • Financing - MON-E
> • Financing - Safrock
> ...




I'm not sure if these are intangible assets, and if you would include them as apart of book value...as in are these worth anything?


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## shakazulu (23 February 2009)

*CCV - Check the announcement (4.5% interim dividend, 9% earnings increase)*

Thats freaky. Everyone's giving profit downgrades and these guys post an upgrade. Did anyone get in? 

shak


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## Calliope (23 February 2009)

*Re: CCV - Check the announcement (4.5% interim dividend, 9% earnings increase)*



shakazulu said:


> Thats freaky. Everyone's giving profit downgrades and these guys post an upgrade. Did anyone get in?
> 
> shak




Pawnbrokers and usurers do well in bad times. These are also the times when their trusted, but poorly paid suppliers, the housebreakers are very active.


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## Fool (11 December 2009)

CASH CONVERTERS about to open at new 52 week high, a lot of brokers have been recommending this stock lately.


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## ROE (11 December 2009)

Got this baby when it hovering around 40 cents.

It covering a very fast growing micro lending market with extremely profitable margin.. this market I reckon will have massive grow in the next decades.

There are 2 more stocks on my radar for pick up when bargain hits and I got the Whole market cover
no need to worry who is winning or losing the market share


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## wecanallinvest (26 March 2010)

CCV is a very well run operation.

Profit in 2005 was 3 million and profit in 2009 was 16 million - not a bad growth path, with a steady history of dividends and EPS growth.

Anyone ever heard of a pawn broker going broke? This one is a keeper in my book.


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## McCoy Pauley (26 March 2010)

Looks like I managed to pick the near top of this most recent run.  It's pulled back about 10% since I bought into it, which isn't a nice thing, but it has gone ex-dividend recently, so it should be expected, I suppose.

A bloke in my apartment complex works part-time as a manager at a CCV store and he reckons that business is booming.


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## wecanallinvest (6 April 2010)

McCoy Pauley said:


> Looks like I managed to pick the near top of this most recent run.  It's pulled back about 10% since I bought into it, which isn't a nice thing, but it has gone ex-dividend recently, so it should be expected, I suppose.




Just some profit taking because of the good recent run it had....

Some more good points on CCV in case you are losing heart:

- P/E of less than 9
- Debt/equity of around 20%
- Return on equity of around 20%
- 2 major shareholders being JP Morgan and HSBC
- and the list goes on.... 

Judging by the recent pickup in buy volume, buyers are realising the value and stepping up ready to grab it at a good price. And yes I hold CCV and will continue to hold at the current price levels.


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## ROE (24 August 2010)

Another sleeper super stars on the rise.. 

Revenues from ordinary activities up 34.8% 

Profit from ordinary activities after tax up 34%

Net profit attributable to members up 33.8%

This is just the beginning ...more to come in the next couple of years
and FY11 off to a good start predicted another 27% grow...


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## KurwaJegoMac (24 August 2010)

Indeed! It's looking quite good. Increased my holdings as a result 

I think it's still quite cheap relative to earnings so will be holding this one a while I think.


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## ROE (24 August 2010)

KurwaJegoMac said:


> Indeed! It's looking quite good. Increased my holdings as a result
> 
> I think it's still quite cheap relative to earnings so will be holding this one a while I think.




I'm with you on this one bargain at this price even 

I been following their strategy in the last 12 months, very clever, this provide frame work for multi years of double digit return...another superstar in my book.

start to get a bit of coverage now .... this sleepers is just open its eye and havent even got out of bed...wait until it's out of bed and running 

http://news.theage.com.au/breaking-...s-turns-trash-to-treasure-20100824-13q4c.html


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## ROE (24 August 2010)

McCoy Pauley said:


> Looks like I managed to pick the near top of this most recent run.  It's pulled back about 10% since I bought into it, which isn't a nice thing, but it has gone ex-dividend recently, so it should be expected, I suppose.
> 
> A bloke in my apartment complex works part-time as a manager at a CCV store and he reckons that business is booming.




No you havent, the market just mis-priced it 

When I buy a great business I recite uncle Warren words 

"Time is the friend of the wonderful business. It's the enemy of the lousy business. If you're in a lousy business for a long time, you're going to get a lousy result, even if you buy it cheap. If you're in a wonderful business for a long time, even if you pay a little too much going in, you're going to get a wonderful result if you stay in a long time."

and CCV is a wonderful business in my book and time will be your friend

when time is your friend combine with compounding is the greatest force in the universe you have a very good time in the market


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## ROE (10 January 2011)

The market now weighting Ccv
Lot of coverage very bullish
We sit back and enjoy the fireworks 
With the best seat in house cos we got in
Before the mass  turn up


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## robusta (10 January 2011)

ROE said:


> The market now weighting Ccv
> Lot of coverage very bullish
> We sit back and enjoy the fireworks
> With the best seat in house cos we got in
> Before the mass  turn up




Well done ROE I missed the boat on this one but will be watching for any opportunity


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## IFocus (10 January 2011)

I took a piece out of this move one of the straightest trends I have seen for some time


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## Spudded (13 January 2011)

ROE said:


> Got this baby when it hovering around 40 cents.




Well played sir!

I got in at 64 cents and according to my calculations they are still undervalued to their IV. Great company, looks like they have a great future


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## ROE (13 January 2011)

Tane said:


> Well played sir!
> 
> I got in at 64 cents and according to my calculations they are still undervalued to their IV. Great company, looks like they have a great future




Look for their big brother in the US ezcorp for some direction of where this industry is going ...ezcorp which has 33% in CCV

Last quarter ezcorp increase earning by 33%, they due to release result 1st quarter on Jan 20 and ezcorp is a top of the top dog in term of performance in the US market.

10 years chart comparasion to the dow --  up 10% ... ezcorp 8200% 

10 Years time we measure the ASX with CCV


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## Intrinsic Value (13 January 2011)

Roger Montgomery has been mentioning this stock for the past year as a decent one to get into.

I would have but all my cash tied up in others that are performing even better than CCV a the moment.


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## fanger (14 January 2011)

I bought CCV back when it 55 cents then held it for 8 months and just it went sideways. So I got out but now I'm kicking myself.


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## ROE (16 January 2011)

fanger said:


> I bought CCV back when it 55 cents then held it for 8 months and just it went sideways. So I got out but now I'm kicking myself.




When to sell stock according to my uncle Phil Fisher and very very good advice indeed
many time I'm thinking of selling CCP at $2.80 - $3.00 then I applied Uncle Phil
three rules and I decided to hold... 

1.) Upon realizing a mistake 

2.) When a stock no longer meets the investment criteria

3.) If a substantially attractive investment arises and stock needs to be sold to finance that investment.


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## ROE (17 January 2011)

Stock got hammered today so maybe your selling may be vindicated


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## VSntchr (18 January 2011)

Hmm, quite a big drop yesterday on no news. 
Profit taking perhaps? Or was there some macro news that affected CCV that I missed out on hearing?

Could be a decent entry point...


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## Spudded (18 January 2011)

VSntchr said:


> Hmm, quite a big drop yesterday on no news.
> Profit taking perhaps? Or was there some macro news that affected CCV that I missed out on hearing?
> 
> Could be a decent entry point...




I'm trying to figure this out as well... It looks like one shop has closed indefinitely due to the flooding but the 10% drop in price in the past 2 days surely couldn't be due to the news of one shop shutting down?

http://www.cashconverters.com.au/qldfloods/


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## ROE (21 February 2011)

beautiful first half

NPAT up
Dividend payout increase 

Expect more second half when the full earning power kick in 
from the new loan book.

This is king of Kings in micro-lending...have not rule out TGA on this front
either so I have my hand in both pots just in case...

Cant believe my luck most of stock I hold increase dividend payout on a regular basis and didn't stop during GFC either.

one for the good companies


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## bigdog (22 March 2011)

ASX ANN today
CCV 8:26 AM  *EZCORP Offer and Global Strategic Alliance* 


*The 91 cents offer is equal to the march 2011 monthly high of 91 cents!!!!
-- is this a good offer for shareholders or a bargain for EZCORP???*




The SPO has been forced down since the high of 91 cents on 09/03/2011
-- have folk been playing games!!!
.
*Trade History* 
sec	Date.........	Close	Volume
CCV	21/03/2011	 0.830 	457,357
CCV	18/03/2011	 0.815 	535,369
CCV	17/03/2011	 0.785 	892,895
CCV	16/03/2011	 0.780 	656,803
CCV	15/03/2011	 0.780 	1,708,724
CCV	14/03/2011	 0.775 	1,690,393
CCV	11/03/2011	 0.820 	1,328,364
CCV	10/03/2011	 0.850 	526,340
CCV	09/03/2011	 0.905 	533,203


http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01163916

*News article*:

http://www.wabusinessnews.com.au/en...A&utm_medium=email&utm_campaign=article_click

*Cash Converters enters US alliance*
22-March-11 by AAP


Pawn broker Cash Converters International will sell majority ownership in the company as part of a strategic relationship to be formed with US-based EZCORP.

The strategic alliance is to develop and introduce a suite of financial services products under the Cash Converters brand globally, Perth-based Cash Converters said in a statement.

As part of the alliance, EZCORP will buy 30 per cent of Cash Converters shares it doesn't already own, taking its stake in the Australian company to a controlling 53 per cent.

EZCORP is offering 91 cents cash per share, which is a 9.6 per cent premium to Cash Converters' last closing price of 83 cents per share.

EZCORP's offer is worth a total $70 million and will be completed through a scheme of arrangement..

Cash Converters said it had formed an independent board committee, excluding the EZCORP nominees of the board, to consider the offer.

The independent committee unanimously supports the proposed offer, in the absence of a superior proposal.

Cash Converters chief executive Peter Cumins said EZCORP had already been a good partner and the alliance would enhance the relationship.

"By giving us access to EZCORP's financial resources, management expertise and systems, this strategic alliance both expands and accellerates our strategic growth plan, opening up many new opportunities for Cash Converters," he said.

EZCORP CEO Paul Rothamel said Cash Converters had a great business model and brand.

"Having it recognised in 21 countries accellerates our long-term strategic goal of being a global provider of integrated financial solutions to our customer demographic," he said.


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## bigdog (22 March 2011)

WHAT ARE THE CHANCES OF THIS BEING VOTED FOR EXCLUDING EZCORP votes????
-- I will not be voting for.
-- Cumins (director in top 20 is #8 shareholder
-- there are two employees (Day & Groom) are in the top 20 shareholders
-- I can not see this being voted for at 91 cents

Except from todays ANN

The acquisition of a controlling interest by EZCORP is to be effected pursuant to the Scheme, which is conditional upon (amongst other things) approval by at least 50% (by number) of CCIL shareholders (other than EZCORP) present in person or by proxy at the Scheme meeting and also by at least 75% of the votes cast at that Scheme meeting by such shareholders. 

Following shareholder approval, the Scheme must be approved by the Supreme Court of Western Australia. 

Additionally, in transactions such as this one, the opinion of an independent expert is required. 

The CCIL IBC has engaged KPMG to provide such an opinion as to whether the transaction is in the best interests of CCIL's shareholders, and to explain the reasons for that opinion.


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## ROE (22 March 2011)

bigdog said:


> WHAT ARE THE CHANCES OF THIS BEING VOTED FOR EXCLUDING EZCORP votes????
> -- I will not be voting for.
> -- Cumins (director in top 20 is #8 shareholder
> -- there are two employees (Day & Groom) are in the top 20 shareholders
> ...




Buy all shares on market for 86-87cents
Vote yes and sell to them for 91c ...


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## Pioupiou (25 April 2011)

I kick myself for not doubling my investment in CCV when I read that Peter Cumins, MD, bought 75,000 CCV for $44,700 (59.6 cents each) in September 2010.   I did not have ready cash at the time, and although I could have borrowed $30K from my children, and I vacillated on the matter, I decided not to.   I had earlier bought at 69.5 cents and then at 58 cents to average about $30Ks worth at 62.2 cents, so I should be grateful for that.

My real question is how do I look at posts in this forum made by individuals like ROE, Pauley McCoy and VSntchr?  I seem to come across them in a number of stocks that interest me.

What do they, or anybody else, think of SGH?


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## Plumber1 (25 April 2011)

Pioupiou said:


> My real question is how do I look at posts in this forum made by individuals like ROE, Pauley McCoy and VSntchr?  I seem to come across them in a number of stocks that interest me.




Just click on their names next to any of their posts. Then click on View Forum Posts.
You will then see all their posts.


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## BigLeon (26 April 2011)

bigdog said:


> WHAT ARE THE CHANCES OF THIS BEING VOTED FOR EXCLUDING EZCORP votes????
> -- I will not be voting for.
> -- Cumins (director in top 20 is #8 shareholder
> -- there are two employees (Day & Groom) are in the top 20 shareholders
> ...




I agree, bigdog.  It's not like CCV have run out of growth - they've got $50m in the bank, plenty of franchisees to buy out, and a massive opportunity to roll out personal lending to their existing UK stores.  Why would we give EZCORP a controlling interest?


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## puppyboy (10 May 2011)

I am somewhat skeptical at this stage that the CCV EZCORP scheme is in our best interests. To me there are 2 issues here...

A joint venture in relation to areas outside Australia and the United Kingdom. This I believe would be a smart business move, lets face it to do what we are doing in Australia and the UK in getting country licences and store franchises back in other countries will be difficult and costly. CCV and EZCORP seem a good fit for this and the returns from these areas is little with what could be great potential for both of us. If we wanted to take on that task alone we would probably need to ramp up infrastrucure and maybe do a capital raising. 

The other issue I and I take it others have is that CCV has finally got it right and those of us who noticed this and got in on the action 34% up last year and forecast of 27% up this year with a statemant from the board that it's well placed to be improved on, took a risk reward punt now see the great posability of losing control at what appears to be a lowball offer on a business that's just starting to hit its straps....lets be honest here... this is a takeover under a different phrase... and if I wanted to sell 30% of my shares at 91 cents I would have done it 2 weeks before the offer was made. Hey I wouldn't be adverse to a takeover at a decent price but I don't see that here.

At this stage I see no reason to vote favourably for the scheme....maybe the experts report will enlighten us of the reasons the board are asking us to consider the proposal.

This topic needs debate. There has been little media interest. Lets ask the questions...your thoughts please.


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## robusta (10 May 2011)

puppyboy said:


> I am somewhat skeptical at this stage that the CCV EZCORP scheme is in our best interests. To me there are 2 issues here...
> 
> A joint venture in relation to areas outside Australia and the United Kingdom. This I believe would be a smart business move, lets face it to do what we are doing in Australia and the UK in getting country licences and store franchises back in other countries will be difficult and costly. CCV and EZCORP seem a good fit for this and the returns from these areas is little with what could be great potential for both of us. If we wanted to take on that task alone we would probably need to ramp up infrastrucure and maybe do a capital raising.
> 
> ...




Have to agree with you there puppyboy. I have bought into CCV @ $0.805 on recent weakness but can see no valid reason for selling any of my holding anytime in the forseeable future. 

If we vote no to this MOU I am fairly confident EXCORP will come back with a better offer, if not CCV still has a very bright future.


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## VSntchr (16 May 2011)

OK so ive looked over the proposal and I like EZCORP. If i was a US investor id definetly want to own them (havent valued them tho).

I can't understand the markets reaction to the offer...my understanding is that one of the following outcomes will occur:
a) the offer is approved and holders get $0.91
b) the offer is denied and CCV continues to trade (note the price before the offer was over $0.90)
c) the offer is denied and and EZCORP raises the offer.

As far as I can see, there is no negative outcome in any of these situations for an investor who purchases today at 80 cents.

Maybe im  naiive and missing something, but from what I can see this is an arbitrage opportunity in a stock with excellent fundamentals and future prospects....


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## robusta (16 May 2011)

VSntchr said:


> OK so ive looked over the proposal and I like EZCORP. If i was a US investor id definetly want to own them (havent valued them tho).
> 
> I can't understand the markets reaction to the offer...my understanding is that one of the following outcomes will occur:
> a) the offer is approved and holders get $0.91
> ...




Could not agree more, I am hoping it will get cheaper ($0.795 today) so i can buy some more.


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## puppyboy (16 May 2011)

VSntchr said:


> OK so ive looked over the proposal and I like EZCORP. If i was a US investor id definetly want to own them (havent valued them tho).
> 
> I can't understand the markets reaction to the offer...my understanding is that one of the following outcomes will occur:
> a) the offer is approved and holders get $0.91
> ...




There has been little volume and it just looks strange...to me it should be trading higher...I keep looking at the  ...asking what am I missing here...I wasn't asking myself any of those questions as I bought on the way up before the scheme was announced... ??? 
Remember you only lose 30% of your holding @ .91cents if it happens....If you held it before liked the stock and prepared to handle either of the 3 scenarios that's great do like I did and add......maybe the problem some are having with it is that they will still have 70% of their holding if the scheme happens and not prepared to take the chance on what the price will do with a stock they may not want to hold after that.
To me it looks like a gem...but the market doen't seem to be reacting that way....


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## Pioupiou (16 May 2011)

I too am mystified as to why CCV is not closer to 91 cents.  Anyhow, I decided that I would get out at 83.5 cents, and use the money to pay off debt incurred to buy TGA recently.  I'll refocus on CCV when I have the money to buy some if the price is right, and that will be when I put in the effort to resolve some of the "mysteries".

As a matter of principle, I love these poverty stocks.  Saint Matthew's Gospel assures us that the poor shall always be with us, and the more the politicians screw things up, the better for the Shylocks.  That is written with my typing finger in cheek, but many a truth is couched in in jest (Geoffrey Chaucer wrote - "A man may seye full sooth (truth) in game and pley."

I probably have mentioned in an earlier post that I also hold SGH, which is a poverty stock in a way.  SGH will sue somebody for you for a cut of what it recovers for you, provided it considers the chances of winning are good.  SGH has done well for me.


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## VSntchr (17 May 2011)

Yeah, I too like the personal finance sector, with all the credit worries around at the moment I feel like the next 5 - 15 years is going to be dominated by the likes of CCV, TSM, CCP and TGA...

TSM has had a major drop for no fundamental reason so I have added to my position there...mid term I think this is an absolute gem..but back on topic...

I bought into CCV today, decided to back my conviction and buy in on the recent weakness.


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## skc (17 May 2011)

VSntchr said:


> Yeah, I too like the personal finance sector, with all the credit worries around at the moment I feel like the next 5 - 15 years is going to be dominated by the likes of CCV, TSM, CCP and TGA...
> 
> TSM has had a major drop for no fundamental reason so I have added to my position there...mid term I think this is an absolute gem..but back on topic...
> 
> I bought into CCV today, decided to back my conviction and buy in on the recent weakness.




TSM dropped at the same time as the chairman giving the AGM address.... have u read that?


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## VSntchr (17 May 2011)

skc said:


> TSM dropped at the same time as the chairman giving the AGM address.... have u read that?




I did, but the accompanying report gave me no worrying information. Even if figures are subdued this year for TSM, I still see bright prospects in the not so distant future...

Perhaps the AGM gave some additional insight that I was not privileged to...


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## Intrinsic Value (18 May 2011)

VSntchr said:


> Yeah, I too like the personal finance sector, with all the credit worries around at the moment I feel like the next 5 - 15 years is going to be dominated by the likes of CCV, TSM, CCP and TGA...
> 
> TSM has had a major drop for no fundamental reason so I have added to my position there...mid term I think this is an absolute gem..but back on topic...
> 
> I bought into CCV today, decided to back my conviction and buy in on the recent weakness.




I have also bought CCV and CCP although maybe I should have waited a bit longer but i still think they are undervalued at the moment.


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## puppyboy (25 May 2011)

We all like to hear positive things about shares we own but sometimes we need to analyse things.

I read with interest the release yesterday regarding the UK listing. 
This will now put us in a longer holding pattern and not allow for the share price to act as it would under normal circumstances. The perception of our company will not be enhanced either.

There are a lot of things that don’t seem normal from the market reaction, little media attention to the scheme and a falling share price…. and now a delay. One would think the wider the gap between the offer price and the trading price the more likely the offer would be accepted.

I like the CCV business model maybe we are on the verge of great things this segment appears a standout….just look at TGA another of my holdings…outstanding result yesterday.
Maybe there will be some positive news released soon…new stores opening reaffirming guidance etc however I don’t expect that to happen. 

When reading yesterdays release at first maybe CCV had made a simple honest mistake and just found out about it 2 weeks ago… I hope that’s all it is and surely couldn’t be anything other than that.

Let’s hope the scheme is allowed to be decided upon by us the shareholders on its merits and not influenced by clouded side issues.


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## VSntchr (31 May 2011)

Thoughts on the recent slide anyone?

Starting to appear very cheap but perhaps there are some people out there that really dont like the deal on the table?


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## Intrinsic Value (31 May 2011)

VSntchr said:


> Thoughts on the recent slide anyone?
> 
> Starting to appear very cheap but perhaps there are some people out there that really dont like the deal on the table?




If you look at the fundamentals it certainly looks cheap.

I sold out and made a loss on CCV and CCP because I saw the whole market going down in the short term.

Worth watching for sure but I am not pulling the trigger on anything right now as I think there is more downside left.


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## Risk Chaser (31 May 2011)

wow down 10% today at $0.680, some very determined sellers out there. I wonder why


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## McCoy Pauley (31 May 2011)

Isn't there an issue with the EZCorp investment in CCV in that EZCorp will remove a lot of the free floating shares in CCV, making it an even more illiquid stock than it already is?

Without really knowing the fundamentals of the announcement of EZCorp's increased involvement with CCV (having not read the announcement for some time), it seems to me that in a downward-trending market and with the spectre of potentially being locked in to a company effectively controlled by a US corporation, some investors are heading for the hills?


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## VSntchr (31 May 2011)

But surely at some point the 'arbitrageness' must come in to play...? selling at $0.91 to ezcorp looks very appealling


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## takeprofits (31 May 2011)

An article on the back page of the AFR, suggested that should the government introduce a payday lending cap, that CCV's profits might turn in to losses!

That is the only thing I can relate to the sell off. I have my finger poised directly over the buy button!


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## skc (31 May 2011)

takeprofits said:


> An article on the back page of the AFR, suggested that should the government introduce a payday lending cap, that CCV's profits might turn in to losses!
> 
> That is the only thing I can relate to the sell off. I have my finger poised directly over the buy button!




That would no doubt be the explanation. It reminds me of MMS when they got sold down big time on rumours of salary packaging regulation change. They've gone up 3x since.

Wouldn't surprise me if the company comes in with an announcement tomorrow to clear a few things up.


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## VSntchr (31 May 2011)

Interesting. Didn't QLD impose this once before a few years back?


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## takeprofits (1 June 2011)

I'm not 100% certain, but I believe most states and Territories have some form of cap in place. I'm not convinced that a cap would turn CCV's profits to losses.


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## VSntchr (1 June 2011)

takeprofits said:


> I'm not 100% certain, but I believe most states and Territories have some form of cap in place. I'm not convinced that a cap would turn CCV's profits to losses.




Yeh, a quick google search showed that NSW was even considering lifting a cap only last month!

I dont have access to the AFR so I couldnt read the article to determine the seriousness...but it seems like a massive over reaction and like SKC eluded to...could prove to be a huge buying opportunity....especially with a takeover offer in at a 33% premium to current price...


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## poverty (1 June 2011)

Got in this morning for 70c.  Hopefully not much potential downside from there, with a fair whack of potential upside.  I plan to hold for 13+ months and pick up a few dividends along the way.


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## takeprofits (1 June 2011)

Nice announcement from CCV this morning. Should reassure holders a little bit.


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## nem23 (1 June 2011)

takeprofits said:


> Nice announcement from CCV this morning. Should reassure holders a little bit.




As a shareholder, I have been following ASZ's recent share performance. Admittedly I have been tempted at pulling the buy trigger with the dip in its share price. 

I note that there is a further full page feature article in the AFR (page 61) today (01/06/11) on CCV titled "Debt traps in payday loans", which puts the company in a negative light and which may further push the share price down.


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## VSntchr (8 June 2011)

So whats up today mr market? Something that the newspaper has said about CCV again?

Getting cheaper and cheaper..even if the proposed caps went through CCV would not go bust. A cap is in place in NSW and they are still profitable in that state. The management of CCV is excellent and I can't see them just folding their hand and giving in - they will have strategies to cope with whatever the outcome may be.

Also the EZcorps offer for $0.91 is still there...

I Now have the stock trading at ~25% Margin of Safety.
and if you are certain that the deal will go through...then this margin is even bigger...


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## puppyboy (8 June 2011)

VSntchr said:


> So whats up today mr market? Something that the newspaper has said about CCV again?
> 
> Getting cheaper and cheaper..even if the proposed caps went through CCV would not go bust. A cap is in place in NSW and they are still profitable in that state. The management of CCV is excellent and I can't see them just folding their hand and giving in - they will have strategies to cope with whatever the outcome may be.
> 
> ...




It has got me stumped as well.....EZ trading well at the moment ...I can't see them backing out....one would imagine those wanting to question the scheme (I am or was one) will now be quiet and take .91 for 30% of their holding....the experts report will no doubt put the scheme in a favourable light even more so with the current price. Looks like an ideal oportunity for Ez to raise the stakes ...really opens some options here for them...I sold down 20% of my holding today @ .65...it all looks wrong at the moment... there seems no plausable reason to me for this to be the way it is.
To me what would have been normal was it to trade say between .81 and .86 till the scheme was voted on then let the market decide...but drop to .62...somethings either not right or it's just one hell of an anomally.


----------



## Huskar (11 June 2011)

Just looking at the CCV 2010 Annual report - am I reading it right? What does it mean to say they received the equivalent of an 88.5% interest rate on their fixed rate instruments in 2010, 104.04% in 09 (n 18, p 56)? Is that interest going to directly to their profitability (and impressive EBITDA margins of ~25%)?

Thanks for the help.


----------



## ROE (28 June 2011)

Huskar said:


> Just looking at the CCV 2010 Annual report - am I reading it right? What does it mean to say they received the equivalent of an 88.5% interest rate on their fixed rate instruments in 2010, 104.04% in 09 (n 18, p 56)? Is that interest going to directly to their profitability (and impressive EBITDA margins of ~25%)?
> 
> Thanks for the help.




Yeah I think what It mean is based on the amount they lend out to various people
total 92m, when the contract ends within the contractual period they effective get an average of 88.5% return on this financial asset ...

The other bit of 52m I think cash they park in the bank for variable interest rate of 5.09% .... 

If their loan book grow they will draw down this bank cash to fund the lending and getting hopefully 88%


----------



## Muschu (20 July 2011)

Anyone able to throw any light on today's announcement please?  What does it mean for a current holder?

Thanks

Rick


----------



## VSntchr (26 July 2011)

CCV shaking off the negative sentiment and climbing back towards 80c. For those of us that added at sub 60c prices, return is looking quite good now.

Alot happening in August with CCV so will be interesting to keep an eye on the price.


----------



## Muschu (26 July 2011)

VSntchr said:


> CCV shaking off the negative sentiment and climbing back towards 80c. For those of us that added at sub 60c prices, return is looking quite good now.
> 
> Alot happening in August with CCV so will be interesting to keep an eye on the price.




Thanks VS - they do seem to be hanging in there -- and I know the feeling!


----------



## ROE (31 July 2011)

Muschu said:


> Anyone able to throw any light on today's announcement please?  What does it mean for a current holder?
> 
> Thanks
> 
> Rick




Just consolidate share structure in the UK, mean nothing for us Aussie holders... Business as usual for us..
Cant wait for the dividend cheque ...my holding on this is way way bigger than CCP 

CCV out gun the market 10% since July..

Market Tanks 4% .. CCV move up 6%


----------



## Muschu (31 July 2011)

ROE said:


> Just consolidate share structure in the UK, mean nothing for us Aussie holders... Business as usual for us..
> Cant wait for the dividend cheque ...my holding on this is way way bigger than CCP
> 
> CCV out gun the market 10% since July..
> ...




Thanks for that.  Guess I didn't read the announcement well enough.


----------



## Plumber1 (4 August 2011)

VSntchr said:


> Thoughts on the recent slide anyone?
> 
> Starting to appear very cheap but perhaps there are some people out there that really dont like the deal on the table?




Market price today at 73c when there is an offer from EZCORP  at 91c.  

What am I missing


----------



## Tyler (4 August 2011)

Plumber1 said:


> Market price today at 73c when there is an offer from EZCORP  at 91c.
> 
> What am I missing




My value of CCV is approx $1


----------



## astro77 (17 August 2011)

Does anyone have a clear understanding of Ezcorps offer?

They way I read things, I gather that I will receive $0.91 per share on 30% of my holding. I would remain with 70% of my shares which would continue to trade under CCV.

I am guessing that the current price being so much lower than the Ezcorp offer has got to do with market uncertainty and the lack of liquidity as volumes are very light.

My theory is that either on rejection of the offer or acceptance of the offer, the price will likely go up from its current position.


----------



## notting (17 August 2011)

You can join up with Wise Owl for a free trial. They have some quite sharp analysts. CCV is one of their little darlings. They will contact you by phone. They are nice! You can then subtly pop the question! 
I don't work for them and am not member.
Report back here will be good to hear.


----------



## VSntchr (18 August 2011)

Is the official code now CCVDA?


----------



## kreagh (18 August 2011)

VSntchr said:


> Is the official code now CCVDA?




Yes the code now is CCVDA to buy or sell.

Trading under this code on a deferred settlement basis continues until 30 August and trades are settled on 5 September.

The timetable is under the announcements for CCVDA.

Interesting timeline considering they usually announce profit/dividend results around 24 or 25 August and ex dividend date is usually around 10 Sept. 

Creates a bit of a window for cash-strapped buyers or speculators.


----------



## VSntchr (23 August 2011)

Numbers are out today along with a million other companies, makes it hard to keep up!!
27.6m NPAT, I was expecting a little more but this is still a ~27% improvement on last year.

I think CCV is one of the better opportunities at the moment for a few reasons:
Market sentiment is very very poor (AFR articles).
EZcorp offer still stands at $0.91.


----------



## VSntchr (25 August 2011)

Looks like a case of very determined selling, with very few buyers...

Will get out the magnifying glass tonight and go over the report to see if theres anything I missed yesterday...


----------



## skc (25 August 2011)

VSntchr said:


> Looks like a case of very determined selling, with very few buyers...
> 
> Will get out the magnifying glass tonight and go over the report to see if theres anything I missed yesterday...




Saw the price action in the morning and thought it was just a flash crash... but the seller is not hiding now.

Another article on AFR? Potential regulation change?

While I think CCV has done well in financial terms I just don't feel comfortable investing in a company that derives profit by screwing her customers. Unless it's a brothel... which I also don't feel comfortable investing in.


----------



## notting (25 August 2011)

EZcorp offer still stands at $0.91. 
Is the Ezcorp offer for Ausi shares? CCV?


----------



## skc (25 August 2011)

notting said:


> EZcorp offer still stands at $0.91.
> Is the Ezcorp offer for Ausi shares? CCV?




EZcorp is not making an offer for the whole company - just some percent of it.

Announcement out - it's a regulation change. National Consumer Credit Protection Amendment Bill 2011.

Capped fees and annual interests... now if you could do the sums quicker than the market there might be a trade in there... long or short!


----------



## VSntchr (25 August 2011)

http://asx.com.au/asxpdf/20110825/pdf/420mqz3cvzthtg.pdf


----------



## kreagh (25 August 2011)

Hmmm - all that selling down from when the price fell from 80c to its current price - surely there must have been some insider trading in all that.

The regulation is bad news for the Cashies business in Australia - but it doesn't affect the booming  business in the UK - so even though the share price might get punished for a while here, I don't think the regulation will have as huge an impact on the Cashies business (as a whole) as the market seems to think it will .

I also think there should be enough loopholes in newly introduced laws for Cashies to still be very profitable in Australia for a few years. I believe the implementation of the proposed laws is at the end of this financial year - so almost a whole year to go (if it is introduced) - and I can't see why it would apply retrospectively to loans entered before the law is introduced. 

The market panic still seems irrational with the EZCorp offer still on the table.


----------



## Wysiwyg (26 August 2011)

skc said:


> While I think CCV has done well in financial terms I just don't feel comfortable investing in a company that derives profit by screwing her customers.



Profitable companies screw their customers by marking up prices higher than cost. Notice how government steps in again to support the dole bludgers and spend addicts.

Could work in favour of CCV with the lower interest rates making getting a loan more inviting.


----------



## zac (26 August 2011)

Whats the deal with todays announcement?
Im not sure I make sense of it.
My shares are going to be bought out and I relinquish ownership?
Is that what its saying?


----------



## ROE (26 August 2011)

WOW what a wipe out 

I sure made a plunder on this one, who should I blame?

the management? the weather? the government?

still hold and see how things pan out and what are the impact on this one...

Next stock pick better be good to replace this paper loss 

For those who has time
http://www.treasury.gov.au/consumer...nloads/reform_green_paper/Cash_Converters.pdf


----------



## ROE (26 August 2011)

zac said:


> Whats the deal with todays announcement?
> Im not sure I make sense of it.
> My shares are going to be bought out and I relinquish ownership?
> Is that what its saying?




CCV UK holder only 
if you keep up with the announcement they all make sense.


----------



## skc (26 August 2011)

ROE said:


> WOW what a wipe out
> 
> I sure made a plunder on this one, who should I blame?
> 
> ...





Glanced through that paper and it was a very interest read with information about the industry that you wouldn't normally come across. For example:

- The average cash advance loan is only $320 yet total fees and interest income is $112. Including up to 35% establishment fee. 

- CCV's profit from each $320 loan is ~$35. While you might think that is only 11% of the principle, one needs to remember that the average loan term is 30 days. So if hey do this 12 times a year that's a return of >100% p.a.

- Over 46% of people applying for these loans are government welfare recipients. 

- Default rate is ~3%.

Never would I have imgaine anyone paying $112 just to borrow $320 for a few weeks. What is so urgent? Is there really no cheaper avenue? 

Many might complaint about the gov't being a nanny state - and that would be true, but there were plenty of time to exit CCV when the news broke earlier this year. Now I understand why CCV has been doing these TV commercials focusing on their "retail/pawn store" business...


----------



## ROE (27 August 2011)

I'm certainly not complaining part of the risk investing in the market
When I lose money, it's my call and it is my fault no one is at fault 
not management, not government, not the weather.


----------



## skc (27 August 2011)

ROE said:


> I'm certainly not complaining part of the risk investing in the market
> When I lose money, it's my call and it is my fault no one is at fault
> not management, not government, not the weather.




That's the right attitude that is lacking in most investors.

I wasn't referring to you btw when I said holders complaining... I was just quoting you for the link the CCV's submission.


----------



## Tyler (27 August 2011)

Bought in ages ago at .59. probaly making a small gain or 0 still. 
Do you reckon the Ezcorp deal goes through still because at .91c that would be great
Also, hopefully they rollout the financing faster overseas, its doing quite well in the UK at least


----------



## Tyler (27 August 2011)

Tyler said:


> Bought in ages ago at .59. probaly making a small gain or 0 still.
> Do you reckon the Ezcorp deal goes through still because at .91c that would be great
> Also, hopefully they rollout the financing faster overseas, its doing quite well in the UK at least




In the cash adv segment
UK loan book grew to $6 mil pounds (800% increase) but the Aus Cash Adv loan book is $50mil aus

Also 
personal loans book is 200mil in aus, 10 mil in UK


----------



## McCoy Pauley (29 August 2011)

Trading halt with respect to an announcement on the scheme of arrangement with EZCORP, Inc.


----------



## ROE (29 August 2011)

McCoy Pauley said:


> Trading halt with respect to an announcement on the scheme of arrangement with EZCORP, Inc.




Would be a cracker if they offer 91c for the whole ccv - but i doubt it..
One can dream cant we?


----------



## skc (29 August 2011)

ROE said:


> Would be a cracker if they offer 91c for the whole ccv - but i doubt it..
> One can dream cant we?




Was there any get out clause now that there is substantial change in circumstance?


----------



## McLovin (29 August 2011)

skc said:


> While I think CCV has done well in financial terms I just don't feel comfortable investing in a company that derives profit by screwing her customers. Unless it's a brothel... which I also don't feel comfortable investing in.




I'm the same. To me CCV is no better than the loan shark who stands out the back of a casino.


----------



## astro77 (29 August 2011)

"EZCorp derives about 80% of its revenue from pawn shops, with the remaining 20% coming from two-to-three-week payday loans, longer-term installment loans and other products"

http://online.barrons.com/article/SB50001424052702303599904576526871445644418.html?mod=googlenews_wsj?mod=googlenews_barrons

I found that interesting


----------



## poverty (30 August 2011)

ROE said:


> Would be a cracker if they offer 91c for the whole ccv - but i doubt it..
> One can dream cant we?




Dream FAIL


----------



## McCoy Pauley (30 August 2011)

EZCORP declining to continue with the transaction in light of the Government's announcement last week to tighten regulation on micro-lenders.

CCV looking to diversify away from its micro-lending business into other business areas and outside Australia to mitigate the loss of business stemming from any such legislation.

Looks like trading did not recommence today.  Presumably there will be some selling tomorrow.


----------



## notting (30 August 2011)

Can't believe it has 14000 customers partitioning the government to soften the pending legislation!!  Wonder if they are all debt collectors!

Morality aside.

Tomorrow is likely to be horrific for longs, however for a company like this having to focus more over seas is not such a bad thing if the model is working over there. Unlike most Australian financial institutions that get eaten overseas, especially in Europe and the Canada this one seems to be doing OK.  The markets much bigger over there!  Bob Brown has insensitivised CCV to focus on bigger fish!

With the Australian dollar so high and these overseas places having to raise interest rates sooner or later these overseas expansions will be less expensive than traditional efforts!  Also with all the squeezing going on over their the business might do quite well.

The timing is perfect!

Might not be a bad longer term investment if it is gutted tomorrow and bought in the gutter.
Ezcorp may come back  to buy the whole thing if tanks badly all be it at half the original offer price.

Real question is - How is the model really performing over there?
I haven't looked at that that closely.


----------



## skc (30 August 2011)

notting said:


> Real question is - How is the model really performing over there?
> I haven't looked at that that closely.




Or how long would it be before UK adopt similar regulations?


----------



## kreagh (30 August 2011)

Good learning experience for me - need to consider legislative risk more closely next time with stock that is perceived as being morally reprehensible. 

Guess I'll have to hold this for some time. 

I wonder what are the chances that CCV and similar lenders can lobby the govt to amend this draft legislation to a more workable model? 

Although if Labour doesn't make it back to power next election - it might not even be introduced and prospects might not be so bad over the next couple of years.


----------



## poverty (30 August 2011)

kreagh said:


> Although if Labour doesn't make it back to power next election - it might not even be introduced and prospects might not be so bad over the next couple of years.




Labor may not even make it to October.


----------



## ROE (30 August 2011)

poverty said:


> Dream FAIL




Epic failure  on my part, oh well time to concentrate on the next super stars and double up, still hold CCV though, paper loss at this stage and law is only draft may not even make into legislation.. who know what may hold....

once it is all finalise, I will reconsider the options.
mean while spend less than you earn and continue the saving dream and invest


----------



## Ohgr (31 August 2011)

I think CCV is still worth holding. In the short term it will probably get hammered but I think in the long run they will recover.

The legislation is definitely a concern, but it still hasn't passed and it could change before it does get passed.

You could also argue that the legislation could end up inviting more people to get small loans because it's cheaper.

I'm holding onto this one simply because:

1) the business model is good and seems to be really hitting its stride in the UK (check the lastest results for UK)
2) I just purchased some recently at .50 cents so if the dividend holds up I'm getting around 7-8% dividend.
3) CCV isn't the type of company that will sit around and let things steam roll them, they will either find loopholes or will offer different services or expand more aggressively in the UK.
4) if the legislation is passed it won't come into effect until the earliest of July 2012, so that's still a year of CCV earning an insane amount of interest and fees.

The reasons to hold are too strong for me to give up selling right now, not to mention they have a pretty nice balance sheet that a lot of companies would kill for right now.

CCV is a little bit of a risky stock right now but sometimes you need to take the risks to get the great returns. I'm holding and if the boat goes down I'll go with it haha. I just wish I had more money so I could buy it at 40 cents.


----------



## notting (31 August 2011)

Bounced hard off it's lows and is at .475.  If I had it, I'd be taking a loss about here.
Look at getting back in a little later on down the track. May not be smart but I'd be comfortable with that.


----------



## xenith69 (31 August 2011)

Certainly concerning but i too am holding!
My avg price is 58.5c so divvy not too bad 
goodluck
SP holding up considering i predicted a close of around 36c


----------



## robusta (2 November 2011)

Maybe the growth will just shift to the UK. A new store every 9 days seems like reasonable growth to me.

http://www.express.co.uk/posts/view/280675/Cash-Converters-growing-as-it-cashes-in-on-downturn


----------



## notting (2 November 2011)

Sounds unbelievable.
Competing at the bottom end is much easier than competing at the top it seems!
Great story pity its a shark fest.


----------



## Mr Editor (14 November 2011)

Great write-up on CCV's UK operations: 

http://www.thisismoney.co.uk/money/...k-happy-profit-hard-up.html?ito=feeds-newsxml

Not my article, though, so please do your own research.


----------



## Huskar (6 December 2011)

Any thoughts as to why Cash Converters was up 10% yesterday? I tried to find any news but couldn't. And 10% isn't exactly mere market noise..


----------



## bigdog (6 December 2011)

06/12/2011 10:47  asx  *Parliamentary Joint Committee Recommendations *
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01250207

Parliamentary Joint Committee Recommendations Cash Converters International Limited ("CCV") welcomes the recommendations made by the Parliamentary Joint Committee on Corporations and Financial Services in its report on the phase II reforms proposed by the Government as set out in the CONSUMER CREDIT AND CORPORATIONS LEGISLATION (ENHANCEMENTS) BILL 2011. 

Following representations from CCV, its customers and other industry executives, the Committee, in its report released on the Friday 2ndDecember, 2011, analysed a wide range of matters pertaining to the Bill. Of the greatest relevance to CCV is the Committee's finding concerning short term small amount credit contracts as set out in the CCV announcement on 25 August 2011. 

The Committee has concluded that the proposed fee caps comprising a 10% establishment fee and a 2% monthly fee are unworkable. The Committee said: "In this regard, it does not appear that an appropriate balance has been struck between consumer protection and industry viability." The Committee has recommended that the Government revisit key aspects of its reform package with further industry consultation. 

CCV looks forward to working with the Government and industry representatives to achieve solutions which do achieve the right balance. 

Managing Director Peter Cumins said: "We encourage the Government to amend its 
proposed regulation of the sector in line with the Committee's recommendations. The 
Company has always welcomed regulation that protects vulnerable and disadvantaged 
Australians. The Committee's thorough examination of the issues and its clear 
recommendations, gives rise to hope that a sensible outcome can be achieved which 
preserves a viable industry and maintains access to short term loans for all those Australians who need this form of finance". 

Ralph Groom Company Secretary 6 December 2011

1697


----------



## suhm (6 December 2011)

Seems like a leaky government ship, if the status quo prevails would be a good buy.


----------



## zac (6 December 2011)

So its quite apparent now that the 10% surge yesterday was Insider Trading.


----------



## puppyboy (6 December 2011)

bigdog said:


> 06/12/2011 10:47  asx  *Parliamentary Joint Committee Recommendations *
> http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01250207
> 
> Parliamentary Joint Committee Recommendations Cash Converters International Limited ("CCV") welcomes the recommendations made by the Parliamentary Joint Committee on Corporations and Financial Services in its report on the phase II reforms proposed by the Government as set out in the CONSUMER CREDIT AND CORPORATIONS LEGISLATION (ENHANCEMENTS) BILL 2011.
> ...




Last week proposed changes to the legislation in the UK got the same result....Whilst there is still a degree of uncertainty as to what the final outcome will be it appears a watered down version will be the outcome.....will be interesting to see if EZ come back for another bite now !!


----------



## skc (6 December 2011)

suhm said:


> Seems like a leaky government ship, if the status quo prevails would be a good buy.




I saw the headline yesterday - sorry can't remember where - so the 10% jump was a reaction, not a leak. CCV released their own statement about the news today.

Probably a good buy but unsure if it will go all the way back with regulatory uncertainty still hanging around. Worth a swing trade if the market holds up imo.


----------



## notting (6 December 2011)

And worth a bucket load if it goes down with the market, if the market goes down IMO.


----------



## McCoy Pauley (7 December 2011)

suhm said:


> Seems like a leaky government ship, if the status quo prevails would be a good buy.






zac said:


> So its quite apparent now that the 10% surge yesterday was Insider Trading.






The Committee's report was widely known.  I read about it in the AFR last week.  I don't see how it could be insider trading.


----------



## suhm (7 December 2011)

McCoy Pauley said:


> The Committee's report was widely known.  I read about it in the AFR last week.  I don't see how it could be insider trading.




Was it? I thought there was an article about CCV but I thought that was just detailing that it was going to the committee and reviewing the pay caps. I didn't think it detailed the findings of the committee's report, I only saw that the day after price rise with CCV's asx release and associated press releases.

Could be wrong of course and appear to be.


----------



## skc (7 December 2011)

suhm said:


> Was it? I thought there was an article about CCV but I thought that was just detailing that it was going to the committee and reviewing the pay caps. I didn't think it detailed the findings of the committee's report, I only saw that the day after price rise with CCV's asx release and associated press releases.
> 
> Could be wrong of course and appear to be.




Review completed 2 Dec (last Friday) and the share price rose 10% on Monday. Seems to be in order...

http://www.aph.gov.au/senate/committee/corporations_ctte/Consumer_Credit_Corporations_2011/info.htm


----------



## ROE (7 December 2011)

This announcement is very bullish for CCV..

1. It gave CCV plenty of time to prepare and de-risk Australian Operations and expanding oversea so when and if these law comes in it has less impact.
It open a lot of stores in UK recently

2. The longer this goes on, labor could lose the next election and that may be the end of this legislation...

3. I'm expecting EPS around 8c this year with 4c dividend 

without regulation risk this is a $1 stock and at this price a lot of bad things has factor in for CCV

up another 10% today ....


----------



## notting (7 December 2011)

ROE said:


> 2. The longer this goes on, labor could lose the next election and that may be the end of this legislation...



Just noting that it is actually a Bob Brown inspired legislation!


----------



## suhm (7 December 2011)

skc said:


> Review completed 2 Dec (last Friday) and the share price rose 10% on Monday. Seems to be in order...
> 
> http://www.aph.gov.au/senate/committee/corporations_ctte/Consumer_Credit_Corporations_2011/info.htm




http://www.aph.gov.au/senate/commit...er_Credit_Corporations_2011/report/report.pdf

Looks like it was released on the 3/12/11, would have been nice if CCV made a comment given the effect that it had on its SP and I thought it should be and the market seemed to think it was price sensitive. ASX seem to disagree though given there was no price sensitive tag against it.

Good on those who were more observant than I was, a very safe entry point at the open for the people who bought 0.47 vs 0.57 now. Small volume though so I don't feel that bad about missing it, not like the whole market knew about it except for me.

I'd prefer for the legislation to be passed rather than just have the reccomendations from the committee before entering but with a greens member and 5 labour members of the 10 committee members you would think it had a good chance of passing, or status quo prevailing.


----------



## skc (7 December 2011)

suhm said:


> http://www.aph.gov.au/senate/commit...er_Credit_Corporations_2011/report/report.pdf
> 
> Looks like it was released on the 3/12/11, would have been nice if CCV made a comment given the effect that it had on its SP and I thought it should be and the market seemed to think it was price sensitive. ASX seem to disagree though given there was no price sensitive tag against it.
> 
> ...




I remember some time Monday I wanted to keep CCV on close watch. But I do way too much reading in the morning and I completely forgotten about it. There's my small xmas bonus running away from me...


----------



## odds-on (7 December 2011)

skc said:


> I remember some time Monday I wanted to keep CCV on close watch. But I do way too much reading in the morning and I completely forgotten about it. There's my small xmas bonus running away from me...




Skc,

Do not worry there is plenty of money to be made out of CCV. I used to hold a large percentage of my portfolio in CCV and made a very nice profit earlier this year. The remaining holding i intend to keep over the next few years as i am confident CCV will make plenty of cash. There will always be people requiring payday loans, so as long as CCV offers the right products their customer base will never disappear. As ROE pointed out this is $1 stock but i will be surprised if it ever trades at that level in the next 12 months. I certainly will be selling if it gets that high, because CCV will never be a stock market darling trading on some high PE multiple. Not only is there regulation risk that could affect the business model but there is also the risk that it will never trade on a high PE multiple, because once the market is willing to pay a premium the market will not be interested in poverty stocks. If you enjoy trading, then there is plenty of opportunity to make cash when CCV is well below PE of 10. My 2 cents and DYOR.

Cheers

Oddson


----------



## notting (7 December 2011)

Speaking of research.
When it hits the headlines often trouble follows.
http://www.cnbc.com/id/45579321
Seems like the market over there is quite active with competitors etc.

I remember all these stories about the evil Macquarie owning the water in England and leveraging up on the cash flow and the evil of financial engineering at the expense of the overall good for the community then quickly came the crash. MQG  whent from $80 to a low of $14 something.

Although, looking at the Euro plenty of poverty lending is going to be required!


----------



## Huskar (8 December 2011)

skc said:


> I remember some time Monday I wanted to keep CCV on close watch. But I do way too much reading in the morning and I completely forgotten about it. There's my small xmas bonus running away from me...




Very interesting discussion about how information asymmetries can result in market inefficiencies - and that information is from the government no less!

Out of interest SKC how do you organise your morning reading? I don't do as much as I would like but even still feel rather swamped by information. So much so that I often see merit in Nassim Taleb's isolationist philosophy that "if it is important it will find its way to me".


----------



## skc (8 December 2011)

odds-on said:


> Skc, Do not worry there is plenty of money to be made out of CCV.




Probably yes for the fundamental investor with patience, but I was just going to pinch 10-15c from the rise at a point which seemed pretty safe to do so...



Huskar said:


> Out of interest SKC how do you organise your morning reading? I don't do as much as I would like but even still feel rather swamped by information. So much so that I often see merit in Nassim Taleb's isolationist philosophy that "if it is important it will find its way to me".




Organised is way too strong a word. But I basically just read company announcements, bloomberg, zerohedge, TheAustralian, SMH and Business Spectator. 



Huskar said:


> So much so that I often see merit in Nassim Taleb's isolationist philosophy that "if it is important it will find its way to me".




Funny, but probably only works for person of some importance rather than a sole trader...


----------



## suhm (8 December 2011)

Do you have a day job? I read the age, afr, businessspectator, the australian (may drop this depending on the pricing of the subscription but the AFR reduced its pricing so may pay for it as well), company announcements for companies I am interested in, some threads in this forum and HC and I find that takes up a lot of my time.

Depending on what job I am doing, I can do this during it but that is not always the case and it means I basically waste my subscriptions some months.

If you have research teams you can let information flow to you but otherwise information assymetry is what I rely on for an edge.


----------



## Huskar (8 December 2011)

skc said:


> Organised is way too strong a word. But I basically just read company announcements, bloomberg, zerohedge, TheAustralian, SMH and Business Spectator.




Thanks for sharing. I glance at SMH, Business Spectator and Bloomberg and it seems to take up half my morning (though as a student at the moment I can afford the time...).


----------



## skc (8 December 2011)

suhm said:


> Do you have a day job?




Trading is my job


----------



## Spudded (1 March 2012)

Looks like a win for CCV's and related to the recent jump in trading volume and price over the last few days http://www.dailytelegraph.com.au/ne...s-can-be-slugged/story-e6freuy9-1226281090334... I only wish news like this was readily available on their website...

Sure it will affect there bottom line with their financial products, but it has finally brought some certainty to the issue that plagued them since the EZCORP offer fell through... I wonder what EZCORP are thinking at this stage...


----------



## Kipp (27 April 2012)

Spudded said:


> Looks like a win for CCV's and related to the recent jump in trading volume and price over the last few days http://www.dailytelegraph.com.au/ne...s-can-be-slugged/story-e6freuy9-1226281090334... I only wish news like this was readily available on their website...
> 
> Sure it will affect there bottom line with their financial products, but it has finally brought some certainty to the issue that plagued them since the EZCORP offer fell through... I wonder what EZCORP are thinking at this stage...




Lol, yes!  I only read about this today http://www.smh.com.au/business/anger-over-changes-to-payday-loans-20120424-1xjbf.html 2 months later... pfffttt!

But I don't see how the lending industry can still consider these changes "unworkable".  20% admin fee +4% per month adds up to some serious interest.  Also, interesting reading about payday loans in Canada (max charge is $21 per $100 of loan) but given the high default rate is was not such a profitable business for a local pawn shop.
http://www.windsorstar.com/business/Cash+Converters+outlets+sell+good+used+items/6429279/story.html

Personal loans accounted for ~50% of FY11 EBIT, with ridiculous EBIT margins (43%) ---> much more profitable than the retailing side of the business.  So I wish I had a better understanding of the regulation surrounding it, and what the worst case scenerio means to earnings.  (well, I suppose a worst case scenario is they drop personal loans altogether and lose 50% of EBIT!!!)

Still seem to have a long line of opportunities ahead of them.  Store Rollout (NSW only 17 stores), acquiring franchised stores (which is something like 75% of UK total stores, and 60% in Australia).  Plus rollout of franchises internationally (Canada, US via EZ Corp).  Super cheap valuation at present...  and I still think EZ Corp are a great chance  to make another bid for the company.  Where are the CCV bears out there to talk me out of this?


----------



## Kipp (27 April 2012)

Lame question - but what % of the company do the insiders hold?
Peter Cumins, Board etc.  [Hard to tell from the shareholders register].


----------



## odds-on (27 April 2012)

Kipp said:


> Lol, yes!  I only read about this today http://www.smh.com.au/business/anger-over-changes-to-payday-loans-20120424-1xjbf.html 2 months later... pfffttt!
> 
> But I don't see how the lending industry can still consider these changes "unworkable".  20% admin fee +4% per month adds up to some serious interest.  Also, interesting reading about payday loans in Canada (max charge is $21 per $100 of loan) but given the high default rate is was not such a profitable business for a local pawn shop.
> http://www.windsorstar.com/business/Cash+Converters+outlets+sell+good+used+items/6429279/story.html
> ...




Hi Kipp,

IMO, the key to any investment in CCV is to work out the probability of the draft laws actually being passed. If the laws are favourable to CCV then it will all be on again and with the recent decline in share price a decent investment in the medium term. I will sit down this weekend and do some more research to work out a catalyst timeline – draft laws, FY report etc. I like these situations as the market does not like uncertainty and drives the share price south!

I always wonder with government intervention whether they will actually implement something, it could just be hot air for a couple of years! IMO balance is required, if they make the payday industry uneconomical then the customers will just go to the criminals. There is a demand for this type of service. There is always going to be a % of society that is unable to manage its finances, I am certain of it. No amount of government intervention will change that % of society by a meaningful amount, because it is just the way society id. The banks and financial planners know this too and make a lot of money from people who are unable to manage their finances.

Cheers

Oddson.


----------



## Kipp (29 April 2012)

Kipp said:


> But I don't see how the lending industry can still consider these changes "unworkable".  20% admin fee +4% per month adds up to some serious interest.
> Personal loans accounted for ~50% of FY11 EBIT, with ridiculous EBIT margins (43%) ---> much more profitable than the retailing side of the business.  So I wish I had a better understanding of the regulation surrounding it, and what the worst case scenerio means to earnings.  (well, I suppose a worst case scenario is they drop personal loans altogether and lose 50% of EBIT!!!)




Ok - so from skimming their H112 presentation.  It has the following info
Aus loan book $64m
Average loan $1028 
Establishment fee $250
Av interest - $490
*and average term 7mths.*
Total to CCV = $740 for $1028 loan

So under the proposed regulation... 4% per annum over 7mths = 28% interest ($280)
+ establishment fee of $200.  
Therefore, Total to CCV post the new regulations = $480.

So pretty big drop of approx 33% in gross contribution to CCV.  And in EBIT terms could be more serious like a 50-60% drop (as costs associated with administering the loan will remain constant).  If I wanted to be bullish it might be argued that there would be some increase in loan activity following the reduced rates.  But at 50% per annum, there is still NO WAY that anybody with any financial management would go near such a loan.    So I would not be game to suggest increased loan activity.

Ok - so using the assumptions above, less say a 45% drop to EBIT (Using the 60% figure for Australia adjusting for the UK ~ currently 20% of personal loan EBIT).  Overall would be ~23% drop to full year EBIT!  Ouch, but not a disaster.  
To compensate, I suppose the company could re-double their efforts on the UK lending business.  Or redeploy capital from loans towards store acquistions and growth opportunities in the event that it becomes totally unprofitable.

Does anyone else out there have their own forecasts on what the new regulations (4%per month) would do to earnings?


----------



## Kipp (29 April 2012)

Mr. Oddison, 
Thanks for your thoughts before.  You are right off course, no regulation is certain until it passes (after 5 rounds of reform).  So worth discounting any impact to earnings against this chance it does not go through at all.

Do you happen to know who the new shareholders is (12/03/12) very hard to tell from the ASX annct.  FMR LLC & FIL???  Bought steadily from End Jan - March 8... 5.1% of company.


----------



## Klogg (10 July 2012)

A question for those who know CCV well - do you know what sort of monthly interest/admin fees are charged now, in comparison to the 4% monthly/20% admin that are proposed in the new legislation?

I'm currently going through CCV presos and such, but any help would be greatly appreciated.


----------



## drworm (10 July 2012)

Klogg said:


> A question for those who know CCV well - do you know what sort of monthly interest/admin fees are charged now, in comparison to the 4% monthly/20% admin that are proposed in the new legislation?
> 
> I'm currently going through CCV presos and such, but any help would be greatly appreciated.




I believe they may be running on average across all loans at 24%/6.8% (establishment fee/monthly interest) currently base on the figures on page 8 on their March presentation slides. But not sure how tight these figures are and whether they can be reliably used for these sort of calculations. ie. some may be average while other may be median numbers.

More details: http://investorwag.com/ground-is-shifting-beneath-payday-lenders


----------



## VSntchr (4 September 2012)

Just having a look through CCV's latest report and I noticed that they spoke of potential securitisation of the
loan books.

Can someone please explain what this would involve in the specific case of CCV?


----------



## Tyler Durden (4 September 2012)

VSntchr said:


> Just having a look through CCV's latest report and I noticed that they spoke of potential securitisation of the
> loan books.
> 
> Can someone please explain what this would involve in the specific case of CCV?




I'm just taking a stab at it, but doesn't that mean selling off their loans to 'investors'?


----------



## skc (4 September 2012)

VSntchr said:


> Just having a look through CCV's latest report and I noticed that they spoke of potential securitisation of the
> loan books.
> 
> Can someone please explain what this would involve in the specific case of CCV?




- Loans currently sitting on CCV's balance sheet are packaged into loan securities (hence the term "securitise") and sold to investors. Let's call them LOWR (Loan of Welfare Recipients) Premium Income notes.

- CCV sold the future income associated with these loans (so it income reduces), but it frees up its balance sheet from the LOWR sale proceeds to make further loans. It also no longer bears the credit risk on those loans.

- The benefit is that they are able to essentially work their capital harder by recycling them. For potential negatives see some of the causes of the subprime crisis.


----------



## Klogg (4 September 2012)

skc said:


> CCV sold the future income associated with these loans (so it income reduces), but it frees up its balance sheet from the LOWR sale proceeds to make further loans. It also no longer bears the credit risk on those loans.




Given they have costs associated with creating these loans in the first place, I would also assume that:

- The interest amount earned on each loan is X%
- The interest amount earned by the SPV (company carrying securitized loans) is Y%

And CCV make a profit on this interest rate differential, i.e. X% - Y% (assuming X > Y)

Otherwise, I can't quite see the value in them creating these loans in the first place... 
(Please correct me if I'm wrong)


----------



## VSntchr (5 September 2012)

skc said:


> - Loans currently sitting on CCV's balance sheet are packaged into loan securities (hence the term "securitise") and sold to investors. Let's call them LOWR (Loan of Welfare Recipients) Premium Income notes.
> 
> - CCV sold the future income associated with these loans (so it income reduces), but it frees up its balance sheet from the LOWR sale proceeds to make further loans. It also no longer bears the credit risk on those loans.
> 
> - The benefit is that they are able to essentially work their capital harder by recycling them. For potential negatives see some of the causes of the subprime crisis.




Thanks for that.
So would I be correct in thinking that another positive is that by freeing up capital to make more loans they are essentially growing the brand name/quickly gaining more customers and eventually down the track won't have to keep securitising because as the business matures the cashflow from operations is more than sufficient to self-fund the loanbooks..?


----------



## McLovin (5 September 2012)

VSntchr said:


> Thanks for that.
> So would I be correct in thinking that another positive is that by freeing up capital to make more loans they are essentially growing the brand name/quickly gaining more customers and eventually down the track won't have to keep securitising because as the business matures the cashflow from operations is more than sufficient to self-fund the loanbooks..?




It sounds to me like now that they have proven their ability in the loan-sharking business they want to move to a securitised business model, which should be good for shareholders; less working capital.


----------



## skc (5 September 2012)

VSntchr said:


> Thanks for that.
> So would I be correct in thinking that another positive is that by freeing up capital to make more loans they are essentially growing the brand name/quickly gaining more customers and eventually down the track won't have to keep securitising because as the business matures the cashflow from operations is more than sufficient to self-fund the loanbooks..?




You probably never want to self fund the loan book anyway... it's not very capital efficient.


----------



## Knobby22 (5 September 2012)

skc said:


> - Loans currently sitting on CCV's balance sheet are packaged into loan securities (hence the term "securitise") and sold to investors. Let's call them LOWR (Loan of Welfare Recipients) Premium Income notes.
> 
> - CCV sold the future income associated with these loans (so it income reduces), but it frees up its balance sheet from the LOWR sale proceeds to make further loans. It also no longer bears the credit risk on those loans.
> 
> - The benefit is that they are able to essentially work their capital harder by recycling them. For potential negatives see some of the causes of the subprime crisis.




It will be interested to see if buyers will come for them. I presonally wouldn't touch them especially after the GFC example.


----------



## ROE (5 September 2012)

Knobby22 said:


> It will be interested to see if buyers will come for them. I presonally wouldn't touch them especially after the GFC example.




Why not? if they disclose their risk...hell there are heap of buyers for Corporate Junk Bonds

This is very different from CDO mangle with CDS stuff ....


----------



## skc (5 September 2012)

Knobby22 said:


> It will be interested to see if buyers will come for them. I presonally wouldn't touch them especially after the GFC example.




There's a price for everything... as long as they don't fall into a hole where they originate the loans without regards to credit quality.


----------



## VSntchr (17 September 2012)

Some wild price action today. Dropped right down to 68c but has now clawed back partially to 0.74. 

Anybody heard any news regarding CCV?

Last time it moved like this was when the AFR was pumping articles on payday lending caps....


----------



## DocK (28 November 2012)

Had this on my watchlist - what's with the huge dump just prior to a trading halt for capital raising?  Smells very fishy to me!  Does ASIC ever investigate this type of action?  I'm speculating that one large sale may have been enough to set off a lot of stop-losses at 0.90c or thereabouts - I'd be fuming if I'd recently bought some.


----------



## RandR (29 November 2012)

DocK said:


> View attachment 49774
> 
> 
> Had this on my watchlist - what's with the huge dump just prior to a trading halt for capital raising?  Smells very fishy to me!  Does ASIC ever investigate this type of action?  I'm speculating that one large sale may have been enough to set off a lot of stop-losses at 0.90c or thereabouts - I'd be fuming if I'd recently bought some.




Im more interested in the reasoning and use of the capital raising, because its sent CCV back down to a price point where im monitoring it again, but dont want to make any moves until looking into what exactly there planning on doing with the capital.


----------



## VSntchr (14 February 2013)

Only had time to flick thru the results but ROE will be happy with a 33% increase to 2c for the half! 

Results all look good and the buying back of franchises continues...will have a deeper look tonight.

Let the good times roll!


----------



## princeplanet (7 March 2013)

Why did this stock drop 6% today?


----------



## Boggo (7 March 2013)

princeplanet said:


> Why did this stock drop 6% today?




Director sold a few.


----------



## princeplanet (7 March 2013)

I know the ex div date is tomorrow, and expected a drop then, but I missed out on the dividend because the down spike today (only just) triggered my stop loss before the price rebounded. If it's true the director sold off in order to shake off the div hunters, is this illegal?  As well as missing out on the div, I lost $ 2K from this "shonky" practice. I'm pissed!


----------



## Boggo (7 March 2013)

Boggo said:


> Director sold a few.




I am familiar with CCV as I have a reasonable holding in my SMSF.

This news and approaching ex may have spooked a few.


----------



## Boggo (7 March 2013)

princeplanet said:


> I know the ex div date is tomorrow, and expected a drop then, but I missed out on the dividend because *the down spike today (only just) triggered my stop loss before the price rebounded*. If it's true the director sold off in order to shake off the div hunters, is this illegal?  As well as missing out on the div, I lost $ 2K from this "shonky" practice. I'm pissed!




This is one of those stock that has regular spikes on the daily.
I tend to go with weekly charts for the SMSF and this is one that needs a bit of room to move around once you get 'established' in the trade.

Close to ex dividend I tend to make sure that my stop caters for the anticipated ex div dip especially if I am in a position to give back a bit.

(click to expand)


----------



## princeplanet (7 March 2013)

Seems at least you were onto it... What would you do if you were me, maybe buy back in while it's cheap??


----------



## Boggo (7 March 2013)

princeplanet said:


> Seems at least you were onto it... What would you do if you were me, maybe buy back in while it's cheap??




I struggle with my own trading with three accounts so asking me for an opinion could easily end in tears 

As far as CCV is concerned I am happy to sit on it for a while longer in my SMSF until it stalls or reverses


----------



## VSntchr (7 March 2013)

Boggo said:


> As far as CCV is concerned I am happy to sit on it for a while longer in my SMSF until it stalls or reverses




CCV is a pretty big weighting in my portfolio too.
From a fundamental perspective, I think that its currently a little below value...but I really like the growth prospects so not considering selling anytime soon..


----------



## pavilion103 (27 March 2013)

I'm a short term trader but I liked the setup on this one so I bought yesterday.


----------



## Boggo (27 March 2013)

pavilion103 said:


> I'm a short term trader but I liked the setup on this one so I bought yesterday.




Just out of interest pav, how does it look on a weekly chart using your layout.

My short term finds seemed to get spooked rather easily lately but there are a few like CCV that seem to keep on going.

(click to expand)


----------



## chops_a_must (27 March 2013)

Yep.

A real nice chart.


----------



## pavilion103 (27 March 2013)

This is the weekly. Some consolidation after the huge volume period. Continues to trend up nicely. Nice little tight triangle before the most recent break. This week really stands out on the chart. Nothing that quite resembles it previously. 

I bought at $1.335 and my stop is now at break even.


----------



## ROE (28 March 2013)

This business owned the market it operates in, there is no real competitor for its business so it stands to capture a fragmented market...and the market is still young....there are plenty of room for it to grown earning for many years left...

the longer you hold the richer you get..

Those panic and sold out last year at 50c probably made one of the biggest plunder in their investment journey.


----------



## pavilion103 (2 April 2013)

Another really good day today. We'll see how the week plays out. I know most are probably long term holders but if I get time I'll post some charts of my own analysis as it happens.


----------



## richbb (8 April 2013)

CCV today closed down 2c at 1.38, with today's open of 1.38 it formed a bullish doji star. We'll expect CCV's correction is over and tomorrow could prove that.

Happy trading, do your own research.


----------



## pavilion103 (8 April 2013)

I'm still in with a stop around 1.33.

As a shorter term trader,annoying to give so much back but hopefully it moves up now.


----------



## richbb (9 April 2013)

pavilion103 said:


> I'm still in with a stop around 1.33.
> 
> As a shorter term trader,annoying to give so much back but hopefully it moves up now.




Yes, me too. I was too late, only sold part of my holding at 1.455. Now I've bought back at 1.38 and 1.405 respectively, waiting for the price recovering.


----------



## pavilion103 (10 April 2013)

Back at 1.44 early this morning


----------



## richbb (10 April 2013)

pavilion103 said:


> Back at 1.44 early this morning




Wonderful run so far for today, it resumes up trend from today? I guess so, next target 1.57!


----------



## bigdog (10 April 2013)

CCV is going great

52-wk High 1.5650 

52-wk Low 0.5250 

Been with CCV since December 2010 and watched them go lower when the govt wanted to make changes
-- one of my better buys!!

1892


----------



## rbgmauq (10 April 2013)

CCV has found support at 1.26. Would like to see a break above 1.565. According to au.stoxline, from the relationship between price and moving averages, It looks good in both short term and mid-long term.


----------



## Boggo (11 April 2013)

rbgmauq said:


> CCV has found support at 1.26.




Yep, similiar area on the weekly.

(click to expand)


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## DocK (18 April 2013)

I bought some CCV at 1.06 in Jan - noticed they dropped substantially today, although recovered somewhat from their absolute low.  There's a news item about a pensioner suing them for not complying with the responsible lending provisions http://www.bankingday.com/nl06_news_selected.php?act=2&stream=1&selkey=14669&hlc=2&hlw= .
Is today's fall a bit of an overreaction on a day when the market as a whole was being sold off?  Technically the stock is still making higher highs and higher lows so the uptrend remains in place, but I'm reluctant to give much more profit back if today's weakness wasn't a knee-jerk reaction.  Thoughts?


----------



## pavilion103 (18 April 2013)

Look at today's bar and then look at:

07 MAR 13
22 JAN  13
27 NOV 12
17 SEP  12


----------



## VSntchr (18 April 2013)

pavilion103 said:


> Look at today's bar and then look at:
> 
> 07 MAR 13
> 22 JAN  13
> ...




Dont know much about technical analysis but just had a look and seems to be a recurring pattern.

Regardless, I got lucky enough to log on today at work and get EVEN MORE ccv for what I believe is a good price


----------



## DocK (19 April 2013)

Thanks for the comments - reinforces my decision to hold based on the fact that it closed well off its lows for the day.  I hadn't identified that particular pattern, pavilion103, even though I was filled on just such a day - 22 Jan 2013   Funny how a pattern can seem so obvious once somebody else points it out to you - thanks for the tip


----------



## pavilion103 (19 April 2013)

Not a strong day so far. Was interested to see if it would react similar to the days following those previous bars. 

I was stopped at 1.36 yesterday anyway. Disappointing to give back most of my open profit but that's the way it goes sometimes when trying to capture a decent move.


----------



## Boggo (19 April 2013)

Am in a good position on this stock, giving it room to move so my stop set to trigger if below $1.25 in the last 5 minutes of trading based on weekly chart.


----------



## VSntchr (19 April 2013)

Company wise we have had confirmation of growth via the half yearly stellar result and further confirmation of potential growth with the use if the securitisation facility. 

And the SP is approx where it was prior to these announcements...i love the volatility in these type of stocks!


----------



## pavilion103 (19 April 2013)

Finishing the day strong. 

The volatility is crazy! Lets see if it keeps moving up. I'll keep an eye on it.


----------



## richbb (20 April 2013)

Last Thursday's (18/4) huge fall was a big surprise, and the recovery of the same day was also amazing. I've bought more at average of $1.27 last two days, waiting it's price for further recovering. 

Interestingly, in May's Smart Investor magazine, there were two articles about CCV:

Page 24 The 10 best value stocks on the ASX; Page 58 Snapshot Stocks.

Coming Monday for CCV is an up day for good chance, with whole market is recovering and the Magazine's comments.

Good luck for all CCV shareholders. God bless us!


----------



## peterlegg (2 May 2013)

Hello all!

CCV has dropped around 10% since the start of the week. 

Are you expecting it to fall further or do you think now would be a good time to buy in and ride the recovery?

And does anyone know the reason for the big drop, it seems to be worse then standard market fluctuations. 

Thanks


----------



## VSntchr (2 May 2013)

peterlegg said:


> Hello all!
> 
> CCV has dropped around 10% since the start of the week.
> 
> ...




Nobody can answer your questions because we cannot forecast price.

In my view the company is not expensive at current levels. If you look only a few posts up, you will see that this same situation occurred only a few weeks ago. Whether or not it will rebound again is up for your individual interpretation based on your analysis.


----------



## chops_a_must (3 May 2013)

It continues to be bought on down days, with high volume persistently getting it up off its lows.


----------



## buffet (7 May 2013)

does anyone know whats up with ccv their volume is high more sellers than buyers (unusuall for them) and they flutuate heaps and are dropping rapidly. A few weeks ago 1.52 can anyone enlighted me. Whos the big seller


----------



## VSntchr (7 May 2013)

buffet said:


> does anyone know whats up with ccv their volume is high more sellers than buyers (unusuall for them) and they flutuate heaps and are dropping rapidly. A few weeks ago 1.52 can anyone enlighted me. Whos the big seller




Maybe its Buffet selling 

All jokes aside, the price has been falling and volumes are high.
CCV has a history of this occuring before bad news is released. So this must be kept in mind. 

It really is pointless trying to answer your question though, because if you are a long termer - the answer to who is selling is largely irrelevant. Whereas if your a short term trader - the potential of a bad news item causing a short term plunge is extremely relevant.


----------



## Boggo (7 May 2013)

One technical view of CCV. If its an ABC correction then it has come within 1.5 cents of the typical (ideal) Wave C today.
We shall see .

(click to expand)


----------



## richbb (21 May 2013)

I think CCV has good chance to go up from here, though today's volume is a bit concern.It has been up from recent low of $1.22. If it can go over 1.275 tomorrow, then the recovery will be in play.

Here is the today's Research Report from BuySellSignals:

Cash Converters International
increases 1.2% - outperforming 84% of
stocks
Cash Converters International Limited, Australia's 13th
largest retailing company by market capitalisation,
increased 1.50c (or 1.2%) to close at $1.25. In the
Australian market of 1,223 stocks and 51 units traded
today, the stock has a 6-month relative price strength of 84
which means it is outperforming 84% of the market. A
price rise combined with a high relative strength is a
bullish signal. The stock rose for a third day on Tuesday
bringing its three-day rise to 3.0c or 2.4%. Compared with
the All Ordinaries Index, which fell 34.8 points (or 0.7%) on the day, this was a relative price change of 1.9%.

Analysis
 © Copyright BuySellSignals Financial Research. Please refer to Disclaimer on back page.
Cash Converters International ( CCV )
Bullish Signals
- The price increased 1.6% in the last week.
- In the Australian market of 1,223 stocks and 51 units traded
today, the stock has a 6-month relative strength of 84 which
means it is beating 84% of the market.
- A price rise combined with a high relative strength is a
bullish signal.
- The Price/MAP of 1.17 for CCV is higher than the Price/MAP
for the All Ordinaries Index of 1.1.
- In the last three months the stock has hit a new 52-week
high six times, pointing to an uptrend.
- The price to 200-day MAP ratio is 1.17, a bullish indicator.
In the past 200 days this ratio has exceeded 1.17, 187 times
suggesting further upside. The 50-day MAP of $1.38 is higher
than the 200-day MAP of $1.07, another bullish indicator.
Undervaluation
- Price/Earnings of 18.1 versus sector average of 31.0 and
market average of 22.6. We estimate the shares are trading at
a current year P/E of 15.4 and a forward year P/E of 13.2.
- The earnings yield of 5.5% is 1.8 times the 10-year bond
yield of 3.08%.
- Return on Equity of 15.8% versus sector average of 6.9%
and market average of 8.3%.
- Return on Assets of 11.2% versus sector average of 3.6% and
market average of 1.5%.
- Return on Capital Employed of 20.1% versus sector average
of 10.2% and market average of 8.5%.
- Interest cover defined by EBIT/I is 18.3 times. This indicates
it is less leveraged.
Also, the following criteria set by Benjamin Graham:


-"A dividend yield of at least two-thirds the triple-A bond
yield"; the stock's dividend yield is 1 times the tripe-A bond
yield of 3.1%.
-"Total debt less than tangible book value"; total debt of
$A42.6 Million is less than tangible book value of $A93.9
Million.
-"Current ratio of two or more"; current assets are 3 times
current liabilities.
-"Total debt equal or less than twice the net quick liquidation
value"; total debt of $A42.6 Million is 0.5 times the net
liquidation value of $A92.84 Million.
- Market Capitalization has increased by $429.4 million from
$102.5 million to $531.9 million in the last 5 years. This
increase comprises cumulative retained earnings of $55.3
million and Created Market Value of $374.1 million. The
Created Market Value multiple, defined by the change in
MCap for every $1 of retained earnings is exemplary at $7.76.
PRICE PERFORMANCE RANK IN INDICES AND
SECTORS:
The stock is in 5 indices and 2 sectors.
The stock's rise went against the trend set by the
following index and sectors:
Retailing sector of 32 stocks traded today, which was down
52.5 points or 1.0% to 5,041.
All Ordinaries Index of 417 stocks and 34 units traded today,
which was down 34.8 points or 0.7% to 5,153.
The Total Australian Market of 1223 stocks and 51 units
traded today, which was down 25.7 points or 0.5% to 5,243.
Percentile
Rank 1-day 1-month 6-months
CCV 80 33 84
Retailing 34 48 79
All Ordinaries
Index
38 67 70
Note
Volatility
The stock traded between an intraday low of $1.24 and fiveday
high of $1.26, suggesting a trading opportunity between
peaks and troughs. The average daily volatility of 3.3% places
the stock in the 3rd quartile in the market meaning it is
mildly volatile.
Volume and turnover period
There were 456,300 shares worth $567,960 traded. The
volume was 0.6 times average trading of 816,364 shares. The
turnover rate in the 12 months to date was 48.2% (or a
turnover period of 2 years 29 days). This average length of
ownership of the stock at 0.9 times the average holding
period of 2 years 3 months for stocks in the All Ordinaries
Index suggests a larger number of speculators on the shareregister, making it less safe for long term.


----------



## Boggo (21 May 2013)

Stopped out on the close below 1.25, still have it on a priority watchlist though just in case.

(click to expand)


----------



## JTLP (5 June 2013)

Boggo said:


> Stopped out on the close below 1.25, still have it on a priority watchlist though just in case.
> 
> (click to expand)




Boggo,

Where do you see this one bouncing to on the charts at this stage?

It's been pushed down over the last few weeks - tested $1.01 on 2 occasions now and seems to be hanging in there.

Thoughts?


----------



## Boggo (5 June 2013)

Will be back in Adelaide late this arvo, will have a look then.


----------



## Boggo (5 June 2013)

JTLP said:


> It's been pushed down over the last few weeks - tested $1.01 on 2 occasions now and seems to be hanging in there.
> 
> Thoughts?




Its in an area of interest if we just look back at the last three legs, ie W.4 and Fib retracement of last leg.
Based on that approach it should be in an area of support but this is probably looking for positives just to find an area where it could turn up.

If it does start to turn up around the current levels I would like to see it re-establish itself with support above 1.17.

That is what may be happening in theory, in reality I think there will be plenty of time to get back on when it does turn back up.

Just my 

(click to expand)


----------



## Ves (5 June 2013)

Earnings downgrade released after the market tonight.   Pretty sluggish of management IMO to do it in an ASX price query, and trying their best to spin it with a false positive "2013 NPAT will be slightly higher than 2012 NPAT."   I would say EPS will probably be about 8c per share vs over 10.5c per share broker forecast.  Entirely possible that this will end up somewhere in the lower area that Boggo highlights on his chart below.

Disclosure: not holding, worried that this company has unforeseen earnings risk  (outside of legislation).


----------



## JTLP (5 June 2013)

That's very poor form. Insiders clearly knew as it was being sold down in the days before.

Will continue to watch from the sidelines!


----------



## skc (5 June 2013)

JTLP said:


> That's very poor form. Insiders clearly knew as it was being sold down in the days before.
> 
> Will continue to watch from the sidelines!




The legislation was known public knowledge. You don't need to be an insider to know that there's a chance that earning will be impacted. Coupled with the market's jittery about high PE stocks (CCV at $1.50 was trading at >16.5x last year's EPS of 8.95c), the risk-reward equation may not justify holding for many.

The impact may be one-off, as the cash advance seems to be picking up after dipping for 2 months. The chart offers good support at 80c. If NPAT was slightly higher than last year's $29.4m, EPS will probably be ~7cps. 80c would make the risk-reward much more favourable esp if the decline in cash advance is indeed temporary.

Will be an interesting open tomorrow morning.


----------



## Boggo (5 June 2013)

Ves said:


> Earnings downgrade released after the market tonight.   Pretty sluggish of management IMO to do it in an ASX price query, and trying their best to spin it with a false positive "2013 NPAT will be slightly higher than 2012 NPAT."






JTLP said:


> That's very poor form. Insiders clearly knew as it was being sold down in the days before.
> 
> Will continue to watch from the sidelines!







skc said:


> The legislation was known public knowledge. You don't need to be an insider to know that there's a chance that earning will be impacted.




From a charting perspective I would tend to think that something spooked it mid April.
Based on that approach to it I would lean towards thinking that the worst was over, ie, the money in the know are gone and its only those who are still holding and were wondering if it was going to much lower that may now decide to panic sell.

I see all of this as a possible opportunity for a confirmed turnaround re-entry with a potential to profit for a second time over the same price range.

Then again if I am wrong then there are another 2000 stocks out there of which at least 5% of them are capable of being replacements at any time - finding them is the key


----------



## JTLP (5 June 2013)

skc said:


> The legislation was known public knowledge. You don't need to be an insider to know that there's a chance that earning will be impacted. Coupled with the market's jittery about high PE stocks (CCV at $1.50 was trading at >16.5x last year's EPS of 8.95c), the risk-reward equation may not justify holding for many.
> 
> The impact may be one-off, as the cash advance seems to be picking up after dipping for 2 months. The chart offers good support at 80c. If NPAT was slightly higher than last year's $29.4m, EPS will probably be ~7cps. 80c would make the risk-reward much more favourable esp if the decline in cash advance is indeed temporary.
> 
> Will be an interesting open tomorrow morning.




Correct - the information was public knowledge about the legislation but by HOW much it was affecting the business wasn't known until tonight.

I don't hold so it doesn't affect me; just think that something else might have been afoot here. You're absolutely correct about risk-reward though and I enjoy following your posts/commentary


----------



## bigdog (6 June 2013)

http://au.news.yahoo.com/thewest/a/-/wa/17501486/cash-converters-takes-hit-on-new-laws/

*Understand why the SP is crashing*

*Cash Converters takes hit on new laws*
The West Australian June 6, 2013, 10:04 am 

Shares in Cash Converters have slumped after the company warned it would take a hit on new laws that make its cash advance product more complicated and time consuming for customers and staff.

The micro-lender warned the additional requirements of the new consumer credit legislation laws, which came into effect on March 1, had hit its loan volumes by 2.36 per cent in March, 26.3 per cent in April and 12.56 per cent in May 12.56 per cent.

"This (the new legislation) has had a significant short term impact on the volume of loans written as both staff and customers become familiar with the new requirements," the company said in a statement.

However Cash Converters said May was a record month for its personal loan product with many cash advance customers move over to a longer duration, higher value loan.

"We expect to see profitability to pick up over the next six months," the company said.

Managing director Peter Cumins said the regulatory change and the system adjustments the company had put in place was always going to result in a transition period for customers.

"We believe the demand for short term loans continues to grow and the impact we are experiencing in our cash advance product will not impact the overall demand for our financial products over the longer term," he said.

Mr Cumins said he still expected full-year 2013 profit to be slightly higher than in 2012.

The new consumer credit laws are designed to protect vulnerable, cash-poor consumers from being exploited by short-term lenders.
Cash Converters shares were off 14.3 cents, or 14.02 per cent, to 87.7 cents after touching an earlier low of 82 cents.


----------



## Tyler Durden (7 June 2013)

So cash advances will be more complicated and time consuming to obtain. I am assuming a person who seeks a cash advance from CCV is already at some stage of desperation, so will this really deter them in the long run?


----------



## skc (7 June 2013)

Tyler Durden said:


> So cash advances will be more complicated and time consuming to obtain. I am assuming a person who seeks a cash advance from CCV is already at some stage of desperation, so will this really deter them in the long run?




I think you'd be surprised how un-desprate some of the regular cash advance customers are.

Just look at the CCV ads... some guy gets a personal loan just so he could buy new clothes and date some girl he just met.


----------



## bigdog (13 June 2013)

CCV publication today - lets hope they have their act together so setup new loans quicker!!!

*Personal loans at Cash Converters is a simple process, we're here to help explain the details of a personal loan.*
http://cashloans.cashconverters.com.au/loans/personal-loans.html

*Personal loans explained*

We're here to help customers make the right loan choice. There are many different and confusing loan names used by different lenders, so we'd like to help by clearing up the confusion.
What is a personal loan?

Personal loans are generally larger loans paid back over a longer period of time than our cash loans. Personal loans are used for all sorts of things like car repairs, or if the car is beyond repair, its replacement, for general household bills, for education expenses; generally those bigger bills that can stop people in their tracks. As personal loans involve borrowing larger sums of money, a longer repayment period allows the loan to be repaid with smaller repayment amounts.

Some personal loan providers don't perform credit checks to assess whether the borrower is eligible for this type of loan and their financial capacity to pay back the amount they have requested. At Cash Converters, as part of our responsible lending policies, we perform checks on every loan to ensure the loan is suitable for our customers and helps them with their finances.
How do Cash Converters personal loans work?

Getting a personal loan from Cash Converters is a simple process. The customer specifies the amount they would like to borrow, Cash Converters determines if the personal loan amount suits the customer based on their requirements, income and expenses. Personal loans are typically paid back anywhere between 6 to 24 months and the cash will be in the customer's bank account within 24 to 48 hours. All customers are required to provide 100 points of ID and bank statements dating back at least 3 months.
Personal loan, how much can you borrow?

The amount borrowed for a personal loan varies based on what the customer earns, and other financial commitments. At Cash Converters, a personal loan typically consists of a loan anywhere from $600 to $2000.
Different Loan Types

Confused about all the different types of short-term loans? We're here to help. Select from the list of loan types below and we'll explain each loan type in the easiest terms possible:

Cash Loans 	Personal Loans 	Bad Credit Loans
Payday Loans 	Unsecured Loans 	Cash Advance Loans

394


----------



## bigdog (22 August 2013)

http://www.4-traders.com/CASH-CONVERTERS-INTERNATI-6496551/news/Cash-Converters-International-Ltd-Revenue-growth-of-16-4-to-$272-7-million-17207616/

*Cash Converters International Ltd : Revenue growth of 16.4% to $272.7 million*
08/21/2013 | 10:24pm US/Eastern

*Revenue growth of 16.4% to $272.7 million

Chairman and Managing Director's Review*

The directors of Cash Converters International Limited ('Cash Converters') are pleased to report a growth in revenue of 16.4% to $272.7 million and a record earnings before interest  tax, depreciation and amortisation (EBITDA) result of $57.0 million for the 2013 financial year, an increase of 18.6% over the previous year.

The statutory earnings per share were 8.1 cents per share an increase of 4.4% on the previous corresponding period. 

In addition the Directors are pleased to advise that the final dividend has been increased to two cents per share, taking the full year dividend to four cents per share fully franked, up 14% on the on the dividend paid in the corresponding period. 

*Highlights*

• Revenue growth of 16.4% to $272.7 million. The major drivers for revenue growth over the year included an increase in personal loan interest of $20.2 million and establishment fees of $5.9 million, an increase in corporate store revenue of $13.2 million and an increase in cash advance administration fees of $1.1 million. 

• The net profit after tax was $32.9 million, up 11.7% on the previous year.

• The Australian personal loan book has grown by 35.4% from $67.6 million at 30 June 2012 to $91.5 million at 30 June 2013 and generated an EBITDA of $40.7 million, up 37.5% on the previous period.

• The growth of the online personal loan business in Australia continues to be very strong with the value of loans written increasing 89% to $26.9 million (2012 $14.2 million). 

• The cash advance administration platform in Australia and the UK, generated an EBITDA of $14.4 million (2012 $13.7 million) which is up 4.8% on the previous year. 

• Three 'greenfield' company owned stores were opened in Australia and nine franchise stores were acquired, taking total corporate store numbers in Australia to 55 as at 30 June 2013. In the UK four franchised stores were acquired taking corporate store numbers in the UK to 63 as at 30 June 2013. Total corporate store numbers are 118 (63 in the UK and 55 in Australia).  

• The Company raised $32.7 million of capital through a placement of 38,500,000 shares at 85 cents per share in December 2012.  The placement was substantially oversubscribed with strong support from existing and new institutional investors. The funds from the placement will be used to acquire stores within the franchise network, to open new corporate stores and to finance the growth of the Australian and UK personal loan books.

7740


----------



## galumay (30 August 2013)

Interesting selling off of CCV, 22.5m today from one seller, price dropped as low as $1.10, another director sold out completely a few days ago too.


----------



## ROE (30 August 2013)

I'm totally out of this a while ago personal moral decision (98-105 around there)  nothing to do with the business...
I think this will go on to make much more money..


----------



## galumay (30 August 2013)

ROE said:


> I'm totally out of this a while ago personal moral decision




Trouble is if i got out of businesses on a moral basis i wouldn't hold any probably!


----------



## ROE (30 August 2013)

galumay said:


> Trouble is if i got out of businesses on a moral basis i wouldn't hold any probably!




Long story but I have a line where I draw 

When I invest in CCV it was a second hand goods trader business, over the years it change to pay day lending
and majority of their earning is now pay day lending...but I am not here to judge 

It never too late for me to act or have a change of heart


----------



## bigdog (9 September 2013)

http://finance.ninemsn.com.au/newsbusiness/aap/8720350/cash-converters-to-raise-up-to-60m

AAP - Monday, September 9, 2013

Cash Converters is seeking to raise $50 million to $60 million through an issue of corporate bonds to repay part of the group's existing debt and to fund further investments.

The loans provider and second-hand goods retailer on Monday said it would offer senior unsecured notes at a minimum subscription of $50,000.

"The ability of Cash Converters to access the wholesale Australian dollar debt markets demonstrates a new level of maturity for our business and evidences the high level of support from investors in funding our significant growth opportunities," Cash Converters managing director Peter Cumins said in a statement.

"This issue will help to provide longer-term debt funding and demonstrates our diligent approach to capital management by achieving further diversity of funding sources."

The notes will pay 7.95 per cent per annum and have an indicative term of five years.

The lead arranger for the offer is FIIG Securities.

Shares in Cash Converters were one cent, or 0.82 per cent, lower at $1.21 at 1255 AEST.


----------



## McCoy Pauley (9 September 2013)

Interesting article about CCV's use of cloud computing to support its operations.

http://www.theage.com.au/it-pro/cloud/cash-converters-convert-to-cloud-20130909-hv1mf.html


----------



## Hodgie (10 October 2013)

Significant drop on open (a little over 10% at one point) then announcement of potential class action in NSW.

potential $40 mil lawsuit according to this artice;

http://www.smh.com.au/business/cash-converters-faces-40m-suit-20131009-2v8n2.html

would wipe out any profits.

There is also potential for the class action to include other states and NSW is the smaller one.

thoughts?


----------



## skc (10 October 2013)

Hodgie said:


> Significant drop on open (a little over 10% at one point) then announcement of potential class action in NSW.
> 
> potential $40 mil lawsuit according to this artice;
> 
> ...




Good intraday trading opportunity upon re-opn with the response from CCV basically saying - Get your facts right and get out of my face.

With the overall market showing reasonable resilient, a green close is a distinct possibility.


----------



## McLovin (10 October 2013)

skc said:


> Good intraday trading opportunity upon re-opn with the response from CCV basically saying - Get your facts right and get out of my face.
> 
> With the overall market showing reasonable resilient, a green close is a distinct possibility.




I don't like CCV's business model, which is basically to screw those who are hard up on their luck, and wouldn't buy the stock based on that. But this case seems like a fishing expedition, with the lawyers hoping to be given a go away fee. I wouldn't be surprised if they get one too.


----------



## Hodgie (10 October 2013)

skc said:


> Good intraday trading opportunity upon re-opn with the response from CCV basically saying - Get your facts right and get out of my face.
> 
> With the overall market showing reasonable resilient, a green close is a distinct possibility.




I was discussing this with a friend offline, he and I came to the same conclusion as you. Problem is neither of us have much cash on hand at the moment which is unfortunate.


----------



## Hodgie (10 October 2013)

McLovin said:


> I don't like CCV's business model, which is basically to screw those who are hard up on their luck, and wouldn't buy the stock based on that.




I have heard that from a few people, I dont personally share this opinion but I don't wish to have that debate on here.

I respect your opinion though.


----------



## bigdog (10 October 2013)

10/10/2013 	Response to Class Action Claim 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01452111


----------



## 13ugs13unny (10 October 2013)

Hodgie said:


> Problem is neither of us have much cash on hand at the moment which is unfortunate.




well don't get angry get even, take your unwanted 'stuff' to CCV then buy their shares.

for simplicity say it pays 4 cents for every dollar dividend p/a

you invest $10 that 40cents.
100 is $4
1000 is $40
10000 -$400
then you get 100% franked amounts because you hold them for 45 days or more. so depends on your circumstance your due a tax refund on the shares you own.

course seek professional advice.

even if they win a class action against ccv its customers will probably pay it all back to CCV because they probably owe them anyway. 

Most likely they will claim it as a tax write off to wash their following year profits through the tax office, maybe even end up with a refund .lol.


----------



## skc (10 October 2013)

Hodgie said:


> I was discussing this with a friend offline, he and I came to the same conclusion as you. Problem is neither of us have much cash on hand at the moment which is unfortunate.




May be you can go to cash converters and get some cash to buy CCV shares 



McLovin said:


> I don't like CCV's business model, which is basically to screw those who are hard up on their luck, and wouldn't buy the stock based on that. But this case seems like a fishing expedition, with the lawyers hoping to be given a go away fee. I wouldn't be surprised if they get one too.




I think they serve some purpose in the world of financie. There are people (albeit a small portion of their cusomters) with truely no alternate means of funds and just needed to tie things over. So CCV probably stops them from sourcing funds from other worse/illegal means.  Then there are customers who just need a new flatscreen TV or a new tux so he could go on a date with an emo chick he just met... they deserve to be screwed anyway.

But regardless, my trade will most likely be closed by the end of the day so what I think of their business model is a pretty moot point.


----------



## Boggo (10 October 2013)

Had my stop set at 1.23 but decided to just get out at 1.235 yesterday as part of a cleanup of stocks that were going nowhere and looking vulnerable in the current environment.

Some days it works


----------



## Hodgie (10 October 2013)

skc said:


> May be you can go to cash converters and get some cash to buy CCV shares




Haha I dont think the trade off would be worth it selling a product at a quarter of its value or taking out a loan at those rates to purchase some shares at a small discount...... better ways to source funds


----------



## galumay (10 October 2013)

Boggo said:


> Had my stop set at 1.23 but decided to just get out at 1.235 yesterday as part of a cleanup of stocks that were going nowhere and looking vulnerable in the current environment.
> 
> Some days it works




Nice work! My dad used to say there are only 2 influences on outcomes, good management and bad luck!

Seems like you exercised some good management there!

My bad luck was to spend the day fishing yesterday and miss the chance to grab some at the bottom of the dip, by the time I realised what was going on they had recovered to $1.16 and I had missed the boat.


----------



## Boggo (10 October 2013)

galumay said:


> Seems like you exercised some good management there!






Boggo said:


> ...
> Below is the contents of one of my accounts, CCV and TGA are the two worst performers so far.




Its been in the spotlight since before this post so it was just a matter of when if it didn't get a move on.
https://www.aussiestockforums.com/f...=18617&page=51&p=796041&viewfull=1#post796041


----------



## Julia (10 October 2013)

McLovin said:


> I don't like CCV's business model, which is basically to screw those who are hard up on their luck, and wouldn't buy the stock based on that.



Good to know some ethical considerations still exist.  They're frequently taking advantage of people who have minimal understanding of what they're actually paying and who are borrowing in desperation.



> A $40 million class action has been launched against lender Cash Converters over short-term loans to thousands of customers.
> 
> Law firm Maurice Blackburn lodged the paperwork for two lawsuits against Cash Converters in the Federal Court today.
> 
> ...



From ABC Radio today.


----------



## bigdog (11 October 2013)

*ASX announcements - two new substantial shareholders on board*

*08/10/2013 	14:14  	 	Becoming a substantial holder from CBA *
*-- 5.02% in September 2013 and new shareholder since the 2012 annual report*





*27/09/2013 	16:07  	  	Change in substantial holding from PPT*
*-- increased to 9.6% in September 2013 and new shareholder since the 2012 annual report*





*Top 20 shareholders per A N N U A L R E P O R T  2 0 1 2*


----------



## VSntchr (20 November 2013)

Announcement out today...
I think the move down to 90c yesterday will prove to be a good buying point today (I disclose I have added more).

One thing to keep an eye on is the FSA looking into UK lending practices as of April 2014. CCV only had minor issues identified by the OFT which conducted a review of the lending products - these have since been dealt with.

As I have been saying for a very long time - CCV is weathering an industry storm, with only a slowing of growth...while other smaller players are collapsing around them. To me it is a classic case of short term pain for long term gain as they will eventually reap the rewards of a larger customer base with fewer competitors. 
The moves by the government which have caused this have not really changed much in the end game for the consumer IMO. I think that given enough time, market forces would have sorted out the cases of over-pricing...
However, now the external force has ensured that this will occur faster and I think it is to CCV's benefit - although their margins may not be as wide due to pricing-caps, they should benefit from a much larger customer base...which has additional benefits through cross-selling, word of mouth etc etc.

This seems to be taking affect already when you look at the charts showing the NUMBERS of new loans in the last few months showing strong growth. In the short term the volumes are not highly correlated to the number of loans due to lower loan values.

Another thing to keep an eye on is the growth of the online lending facility. It grew 90% over FY2013 to now constitute 30% of the total personal loan book. I expect this figure to keep growing, lending can be a sensitive issue and many people are too proud to go in-store. The UK online lending was only launched in July so I'll be watching for growth to follow a similar (albeit I expect slower, us Aussies are ahead of the game when it comes to online IMO) in that market too.


----------



## pixel (20 November 2013)

Hey VS,

I would've thought that, with conditions becoming tougher for the lower-income families, Cash Converters should prosper a lot more than they apparently do. Bu when I look at the chart, it's more as if THEY were facing the tough times, not their clientele.




Therefore, till my chart shows a break of the falling trend - at least the steepest 3rd gradient - I'll stay away.


----------



## abucs (28 November 2013)

It's certainly a rollercoaster ride. I'm thinking the company being decades old is a good sign that they can handle short-term problems.

P.S. I like your 'early worm' quote pixel.


----------



## Valued (30 November 2013)

I am staying away due to the legal action by Maurice Blackburn. They are quite serious about this class action and they believe litigation has a high prospect of success. Normally what happens is CCV will settle for "commercial convenience" and such a settlement will see a profit wipe out. If they do defend, it will defer payment if they lose for some time due to length of litigation. If they do end up losing eventually, they will make a loss that year. They will likely need to put aside cash reserves for that eventuality which means you will see a reduced yield but without any corresponding growth in the business. 

Interesting discussion about the morals of it all. I won't invest in cabcharge since I think it's a rip off to consumers and they deserve to be regulated.


----------



## littleshire (16 December 2013)

Hi all,

this one seems to be falling a fair bit. any ideas how far it will go?


----------



## VSntchr (16 December 2013)

littleshire said:


> Hi all,
> 
> this one seems to be falling a fair bit. any ideas how far it will go?




Read the thread if you want opinions on CCV. Answering the above question is quite difficult without a crystal ball


----------



## Huskar (16 December 2013)

VSntchr said:


> One thing to keep an eye on is the FSA looking into UK lending practices as of April 2014. CCV only had minor issues identified by the OFT which conducted a review of the lending products - these have since been dealt with.




I have just got back from the UK where it was quite big news that the government announced a cap on lending rates. 

http://www.dailymail.co.uk/news/art...n-huge-rates-fees-George-Osborne-reveals.html

If you want an explanation for the share price falls look no further. 

Amazed to see no comment on this released by CCV?? Or am I missing something


----------



## JTLP (24 December 2013)

Bit of a leaky ship  yesterday with an announcement today that CCV have bought in to 25% of a franchise arrangement in NZ.

These guys were steadily going down over the last few months...will see how this plays out.


----------



## bigdog (4 March 2014)

4/03/2014 	Strategic Investment in Joint Venture for South America and Mexico 	

Cash Converters International Limited (“Cash Converters” or “the Company”) is pleased to announce that it has entered into a Joint Venture with EZCORP Inc to launch Cash Converters in South America and Mexico.

Cash Converters will hold a 20% interest in the Joint Venture through a subsidiary company in return for granting a master licence to the Joint Venture for Latin America and providing information technology services, training and management support. EZCORP, through a subsidiary company, will inject US$3.6 million into the Joint Venture in return for its 80% interest. Any additional funding is subject to mutual agreement with arrangements in place to enable EZCORP to provide extra funding and receive a preferential distribution without diluting the Company’s 20% interest in the Joint Venture.

EZCORP currently owns and operates 244 pawn stores in Mexico, trading as Empeno Facil and has operational headquarters in Miama, Florida. EZCORP has identified that the Cash Converter business model is unique in the Mexican and Latin American markets due to its modern retail offering and multi-channel lending products and considers that these points of difference create an opportunity to grow a substantial business in the region. 

Growth Strategy
The Joint Venture will grant a Master Franchisor agreement to suitable local partners for the development and roll out of Cash Converters stores, both by way of owner operated stores and franchised stores throughout Mexico and Latin America.

The Joint Venture will establish a management structure in Mexico and then issue a Master Franchisor licence for Mexico with a local partner. Once established in Mexico the Joint Venture will operate with local partners to target locations in South America. The intention is to open the first Cash Converter store in Mexico this year.

Managing Director Peter Cumins said “This as an exciting opportunity for us to achieve progress in 
these territories with minimal capital outlay and with the support of EZCORP who has an established presence in Mexico. We see significant opportunity for the provision of our financial services products and online platforms across the region. Although the Joint Venture is not expected to be a material contributor in the short term we see strong growth potential for us in the region over the next 5 to 10 years”


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## VSntchr (5 March 2014)

Good to see that EZcorp is still keen to collaborate, I just hope they don't try to take over CCV on the cheap again!


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## VSntchr (14 August 2014)

In another Ezcorp related incident, now ex-BOQ CEO has been identified as the new exec chairman. With a bunch of Aussies getting a foothold perhaps the relationship between the two will strengthen further.

*from SMH:*
NASDAQ-listed payday lender EZCorp has confirmed Bank of Queensland CEO Stuart Grimshaw will become its executive chairman in an Australian-led takeover of the company.
An adviser to the company, fellow Australian Lachlan Given, was appointed non-executive chairman last month. But he will now become executive vice chairman in a coup led by EZCorp’s controlling shareholder, MS Pawn Ltd.
Amid allegations money was being siphoned out of EZCorp, CEO and president Paul Rothamel, chairman William Love and another board member, Joseph Beal, were ousted last month by Australian-born private equity investor Phillip Ean Cohen.
He owns MS Pawn Limited Partnership, which controls EZCorp via its 100 per cent ownership of its class B voting common stock. Another board member, Charles Bauer, resigned.
EZCorp owns a third of Cash Converters and William Love and Joseph Beal are also non-executive directors of the Australian company.

Read more: http://www.smh.com.au/business/mark...nings-rally-20140814-3dnrm.html#ixzz3AKyUEbO0


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## bigdog (4 September 2014)

http://www.wkrb13.com/markets/36756...rating-for-cash-converters-international-ccv/
*
    Hartley’s Research Reaffirms Buy Rating for Cash Converters International (CCV)*
Sep 4th, 2014 

    Cash Converters International (ASX:CCV)‘s stock had its “buy” rating reiterated by stock analysts at Hartley’s Research in a report issued on Thursday. They currently have a $1.27 price target on the stock.

    Shares of Cash Converters International (ASX:CCV) opened at 1.150 on Thursday. Cash Converters International has a 52 week low of A$0.750 and a 52 week high of A$1.325. The stock has a 50-day moving average of A$1.13 and a 200-day moving average of A$1.05. The company has a market cap of A$493.2 million and a price-to-earnings ratio of 20.62.

    Cash Converters International Limited is engaged ownership and franchising of retail and financial services stores, which operate as retailers of second hand goods and suppliers of financial products.

4600


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## bigdog (27 October 2014)

*The market liked todays ASX quarterly update*

*CCV still is court case in NSW hanging over its head!*

*   CCV     $1.095     $+0.095 +9.50% @ Mon 27 Oct 2014 11:03 AM*

CCV 	27/10/2014 	8:27:56 AM 	*Trading Update for QTR Ending 30 Sept 2014 *
http://www.asx.com.au/asxpdf/20141027/pdf/42t63tz4pccs5t.pdf

*Trading Update*
Cash Converters International Limited is pleased to provide the following trading and performance update based on the first quarter unaudited management accounts for the 2015 financial year. The normalised EBITDA profit for the quarter ending 30 September 2014 was $16.6 million, up 61% on the corresponding first quarter last year (2013 first quarter: $10.3 million).

This strong result reflects the continuing upward trend in earnings reported at the full year.

*Major highlights for the first quarter include:*
• Strong revenue growth compared to the previous corresponding period up 26.2% to $97.2 million (2013 first quarter: $77.0 million). The major drivers for revenue growth over the period included an increase in personal loan income of $12.5 million and an increase in corporate store revenue of $6.1 million;

• The personal loan book in Australia grew by 23.4%, from $85.1 million as at 30 September 2013 to $105.0 million as at 30 September 2014;

• The growth of the online personal loan business in Australia continues to be very strong with the value of loans written increasing to $13.1 million for the period, up 111.5% on the previous corresponding period. (2013 first quarter: $6.2 million);

• The value of online cash advance and personal loan products approved in the period increased 112.7% to $15.4 million; and

• The corporate store network in the UK and Australia has seen revenue grow by 15.4% to $45.9 million over the corresponding period. The corporate store network EBITDA was $4.7 million for the quarter, representing an increase of 148.7% on the corresponding period. (2013 first quarter: $1.9 million).

*Financial services operations*
During the first quarter we have continued to experience an increase in the amount of loans advanced for the personal loan product. As at 30 September the personal loan book was $105 million, an increase of 23.4% on the same period last year ($85.1 million as at 30 September 2013).

The personal loan book traditionally falls away slightly in the first quarter from the closing loan book as at 30 June. This seasonal trend continued with the loan book down slightly from 30 June 2014 closing balance of $109.2 million, though representing a notably smaller 3.8% decrease, which is less than we have historically experienced (pcp was down 7%). Bad debt percentage levels have increased slightly to 7.2% from 6.6% as at the 30 June 2014 which is within the historical range for the business. . We expect the loan book growth momentum to continue into the Christmas period
which is a seasonally strong period for Cash Converters.

*Company owned store results*
The corporate store network in Australia produced a first quarter EBITDA of $4.7 million, up 148.7% on the previous period (2013 first quarter: $1.9 million). For existing stores, a number of important KPI’s improved against the corresponding period - pawn broking interest (up 16%), cash advance commission (up 19%), personal loan commission (up 13% with online up 51%) and retail sales up 2%. Recently acquired stores delivered an additional $695K of EBITDA.

In the quarter ending 30 June 2014 the Company acquired three franchised stores in Queensland. These acquisitions take the number of corporate stores in Australia to 64. The acquisition price of $5.2 million for these latest three stores represents an EBIT multiple of 3.9 times on earnings and a multiple of 2.9 times excluding assets.

The corporate store network of 58 stores in the UK produced an EBITDA loss of $121,406, compared to previous corresponding profit of $301,466.

5346


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## bigdog (26 November 2014)

http://www.theaustralian.com.au/bus...-licences-stores/story-fnjw8txa-1227135542203

*Cash Converters to raise $45m to buy licences, stores*

    Maggie Lu Yueyang
    Business Spectator
    November 26, 2014 12:47PM


PAWNBROKING franchisor Cash Converters will raise up to $45 million through a placement to fund the acquisition of development agent licences and potential store purchases.

The Perth-based company (CCV) has engaged Hartleys Ltd as sole lead manager for the placement, in which it will issue up to 47.4 million new shares at $0.95 each.

The issue price represents an 8.7 per cent discount to Cash Converters’ last close of $1.04 per share.

It is understood that Cash Converters will use part of the proceeds to buy licences from Kentsleigh and Cliffview, which own the right to manage financial services in Australia and receive commissions on loans. The transaction, worth $30.8m, will end the ongoing obligations for Cash Converters to pay them commissions.

Another $12m will be used to fund potential store acquisitions.

The placement has won support from Cash Converters’ majority holder EZCORP, an American pawn shop. EZCORP has said it intends to participate in the placement to maintain its current 33.8 per cent holding.

Hartleys Ltd acts as the sole lead manager on the placement.

Shares in Cash Converters are in a trading halt, until the company makes an announcement.

5991


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## bigdog (27 November 2014)

*CCV $1.000 $-0.040 -3.85% at close today*


http://www.fool.com.au/2014/11/27/c...etail-investors-with-institutional-placement/

*Cash Converters International Ltd scorns retail investors with institutional placement*
By Owen Raskiewicz - November 27, 2014 

Around midday today, pawn broker and payday loans provider Cash Converters International Ltd (ASX: CCV) emerged from a week-long trading halt.

*The good news *from Cash Converters’ announcement today was the decision to terminate an open-ended licence with two “Development Agents”, named Cliffview Pty Ltd and Kentsleigh Pty Ltd.

The licence with the two development agents has been in place for 10 years and allows them to receive a commission for every loan the company writes. Over the years, Cashies’ loan book has grown exponentially.

By terminating the licence, the company will save approximately $5.7 million per year.

However the cost of termination is $30.8 million and will have an after tax impact of negative $18.8 million (including GST savings and the reduction in expenses).

Putting it in your left pocket

*The bad news* from today’s announcement is Cash Converters chose to do an institutional capital raising of $45 million through the placement of 47.4 million shares at $0.95 each.

At June 30 2014 Cash Converters had around 428.9 million diluted shares on issue and a market price of $1.04 prior to the placement. That means total shares on issue will increase by 11%, at a 9% discount.

Now, I’m well aware it costs less in time and money to issue the shares to institutions and sophisticated investors, rather than to retail holders.

But is it fair? Did the deal have to be done so quickly?

After all, only $30.8 million of the total $45 million is going towards the licence termination, the rest will be working capital and funds for acquisitions.

So couldn’t the remaining portion have included a retail offer?

According to its latest Annual Report, Cash Converters had 7,729 shareholders. At the time of writing, Cash Converters shares are down 3.4%.

Foolish takeaway

I’m a big fan of Cash Converters as an investment (if you didn’t already guess it, I’m a shareholder) but today’s decision is yet another case of retail shareholders getting scorned. Conducting a pro-rata renounceable rights issue is both a shareholder friendly and better way to raise money in my opinion.

In summary, today’s announcement demonstrates a great use of funds but unfair way to go about raising capital.

6159


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## skc (5 August 2015)

Not a great period for CCV.

First there is regulatory review. Then came a class action. And today, confirmed rumour that Wespac has pulled out of financing payday lenders.

MNY also taking a nice hit.

Will someone else step up to fund them? The existing contract with WBC doesn't run out until Mar 2016, so there's a chance that the regulatory issue will be bedded down and they will find a replacement.

Wild share price action today (which I totally fk'd it up :bad.


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## VSntchr (5 August 2015)

skc said:


> Not a great period for CCV.
> 
> First there is regulatory review. Then came a class action. And today, confirmed rumour that Wespac has pulled out of financing payday lenders.
> 
> ...




What did you do with it SKC?
It was a bit surprising to see so many knife catchers around to keep it above 50c IMO. The sell side got pretty thin at times (well, CCV isn't thick at the best of times anyway). Will be interesting to see how it goes tomorrow and if there are any more lines left for the bargain hunters.
I guess that some of the more informed punters did some of their selling yesterday as the rumours were around...so perhaps today's action reflected the fact that it was semi-priced. Although I personally think this could experience selling for a while longer..


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## skc (5 August 2015)

VSntchr said:


> What did you do with it SKC?




Let's see.

MNY annonuced that WBC has pulled the finance, confirming the rumour from 2 days ago. I went short yesterday but size was too small. Mistake #1. 

I covered half of my short on lifting of the trading halt, when it didn't look like there were a lot of sellers. Mistake #2. 

I covered and went long 2 minutes after re-open when 50c looked like supported. This in itself wasn't a mistake but I chased it a bit and didn't exit fast enough when it went back down towards 50c. Mistake #3.

It plunged all the way back to 46c then broke 50c again on the way back up. I traded it long again but only 1/2 size as my first long. I sold half of my small long @ 52 and rest @ 54.5. So sold too early. Mistake #4.

Overall... there was 10c range on a 50c stock and I traded it like a dog's breakfast when there's plenty to be made.

Fail.



VSntchr said:


> It was a bit surprising to see so many knife catchers around to keep it above 50c IMO. The sell side got pretty thin at times (well, CCV isn't thick at the best of times anyway). Will be interesting to see how it goes tomorrow and if there are any more lines left for the bargain hunters.
> I guess that some of the more informed punters did some of their selling yesterday as the rumours were around...so perhaps today's action reflected the fact that it was semi-priced. Although I personally think this could experience selling for a while longer..


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## notting (5 August 2015)

skc said:


> Overall... there was 10c range on a 50c stock and ............. when there's plenty to be made.




Don't worry.  There is always tomorrow!


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## Rainman (23 November 2016)

Does anyone like this stock for its turnaround possibilities?  I have taken a nibble now that the legal horizon has cleared somewhat.

I hate its business but it looks cheap.


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## Admiral Rimmer (25 November 2016)

Rainman said:


> Does anyone like this stock for its turnaround possibilities?  I have taken a nibble now that the legal horizon has cleared somewhat.
> 
> I hate its business but it looks cheap.




Given its current price, no lol

Lot of uncertainty around how its transition to MACC will go.  The legal issues should be behind them soon.  It's more how much of Money 3's market are they going to be able to make profit in that worries me.

I can't see them breaking through a 1.00 anytime soon that's for sure.


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## Rainman (28 November 2016)

Admiral Rimmer said:


> ... I can't see them breaking through a 1.00 anytime soon that's for sure.




Let's check back in a year's time.

CCV has provided guidance of $20 million to $23 million of NPAT for 2017.  Its market cap is presently $170 million.  

MNY made $20.1 million in NPAT last year.  It is guiding to $26 million in earnings for 2017.  MNY has a present market cap of $261 million.  

Why do I want to spend $91 million more for at most $6 million more in earnings?


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## Admiral Rimmer (6 December 2016)

Rainman said:


> Let's check back in a year's time.
> 
> CCV has provided guidance of $20 million to $23 million of NPAT for 2017.  Its market cap is presently $170 million.
> 
> ...




You could well be right.  Only time will tell how they go meeting guidance.

Market seemed to recently factor in legislative changes which wont take effect until 18 at the earliest, so potential in that I guess.


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## WRiley (7 December 2016)

Keen here.


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## The Triangle (2 June 2018)

WRiley said:


> Keen here.



I'm in.  I think this capital raising will significantly change the company.  Bonds will be wiped off the map.  That saves $5m a year in costs + the admin costs + renegotiating costs if they had decided to get new ones.  It also leaves a massive cash balance intact which will surely be enough to cover the class action (which will hopefully be resolved in the next 6 months).  Expect in 12 months time to see earnings  4+ cents per share range.


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## The Triangle (15 March 2019)

Has not been a very good performer.  Frustrating when you see twenty trades today for 12 shares each...  I've significantly increased my holding this week and look forward to the new CEO starting Monday.  EBITDA looking ok pos adjustments and hopefully class action will be resolved before the end of the financial year (anyone know what to expect?  $35 million is my guess?)


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## Zaxon (15 March 2019)

It surprises me that with the belief that "payday loans" are ripping people off, how poorly CCV is doing operating in this space.


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## sptrawler (15 March 2019)

The problem is they can't sell stuff cheaper than you can buy new.


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## Smurf1976 (26 March 2019)

sptrawler said:


> The problem is they can't sell stuff cheaper than you can buy new.



Yep. Everything is against that side of the business really.

Value of new goods has dropped hugely thus limiting the potential markup on second hand items and also reducing the base of customers who want to buy second hand goods.

Meanwhile the cost of doing business has steadily increased. Rent, wages, utilities etc.

Plus the ability to advertise your own goods for sale to wide market at no cost online reduces the number of people who would consider selling their items to a second hand dealer.

It's a perfect storm really, under attack on all fronts.

To the extent there's an ongoing business here it's in the loans side of it all not the more traditional second hand goods business.


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## greggles (24 April 2019)

A five year weekly chart best illustrates CCV's declining fortunes. 

Generally I agree with Smurf that Cash Converters is operating a business model that seems to have less relevance today than it ever has. If you want something second hand, get on Gumtree or eBay.

Even the loans side isn't something I'd be betting on with Afterpay and other ways of paying things off in installments. Short term loans with extortionate interest rates is something I think we'll be seeing less of in the future as competition and innovation changes the short term credit landscape for good.

It will be interesting to see where CCV does eventually bottom out.... if indeed it actually does.


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## Smurf1976 (26 April 2019)

I note with interest the current buy order for 7.5 million shares at 1.3 cents each (verus last traded price of 15 cents).

Market depth can be yeah, whatever, but that's a bit extreme.

Someone's actually expecting to have a chance of getting that order filled? Or something else going on? 

Do not hold, just noticed the large outstanding order and looked further into it.


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## The Triangle (25 July 2019)

Again, this one is very frustrating.  Up 7% this morning on nothing, I bet it will be down 5% at some stage today and finish at the same price it closed at yesterday. This has been a relatively poor investment thus far, average price still in the low 20s. - but I have confidence it will be much higher once the class action is resolved (which is hopefully very soon).  Added a 1/3 to my holdings in the past two weeks.   I believe the SP factors in a loss on the class action.   I'll have a very quick trigger once the annual results come out.


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## sptrawler (29 July 2019)

It looks as though Cash Converters are going to have a loss of between $2-$4m, in contrast to last years $22m profit.

https://www.smh.com.au/business/com...dicts-swing-into-the-red-20190729-p52buh.html


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## Smurf1976 (7 September 2019)

I still hold my doubts about the long term viability of the business, second hand goods especially. As anyone who's cleared out a house in the past few years will be well aware, most items in practice have no value. Go through most houses and there might be a few items of value but the other 90% it's either keep it, give it away or send it to recycling / landfill. 

That said, looking at a weekly chart of CCV I do note the volume increase in recent months and wonder if something's up?


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## barney (7 September 2019)

Smurf1976 said:


> As anyone who's cleared out a house in the past few years will be well aware, most items in practice have no value.




Indeed …. We need to bring the American Pickers over .. they seem to like old stuff

CCV needs to trade back above 15 and show support otherwise it still looks vulnerable to more downside. 

The recent spike to 17 cents on low Volume was quickly rejected ….. The recent low at 12 cents looks like the short term low, but if that gets broken, it could get even uglier. 

Hopefully for holders it will form a base from here


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## sptrawler (8 September 2019)

The way technology and our society as a whole is moving toward a disposable lifestyle, that changes every season, there will be no place for cash converters. Possibly the only section that  will survive is the gold recycling.
As for stereo's, t.v's, dvd's, electronic equipment and bicycles, it would be a brave person paying for them, on the hope of flipping it for a profit.


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## InsvestoBoy (8 September 2019)

sptrawler said:


> The way technology and our society as a whole is moving toward a disposable lifestyle, that changes every season, there will be no place for cash converters. Possibly the only section that  will survive is the gold recycling.
> As for stereo's, t.v's, dvd's, electronic equipment and bicycles, it would be a brave person paying for them, on the hope of flipping it for a profit.




From a quick squizz at Yahoo! Finance, their operating margin is ~10% so they do seem to manage to flip!

I think the missing piece of the puzzle here is that regardless of how little value the junk in most peoples houses has there are always some people that need short term liquidity. CCV just operates the same business model as the old inner city pawn shops but at scale. Offer liquidity to people for their stuff at an absurdly low price and put it on display for the going rate of second hand goods, to sell to the same sort of people who buy used laptops and whatever on eBay. Hell, CCV can even list items that aren't moving in store on eBay themselves.

You guys are thinking of people who can afford to buy new stuff, not people who can't afford whatever expense is coming and need liquidity on the spot, who can't wait for a bargain hunter to come and bid on their eBay listing or field questions from randos on Gumtree.

I personally don't think it's a super ethical business and consequently don't hold, but the question is will the segment of society that needs liquidity grow? Because there is always a willing buyer for a cheap used laptop or whatever.


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## Smurf1976 (21 October 2019)

CCV closed up 30% today to 19.5c following an announcement regarding settlement of a class action against the company.

The settlement is for $42.5 million with $32.5 million to be paid shortly and the remaining $10 million by 30 September 2020.


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## The Triangle (21 October 2019)

No admission of guilt.  Plenty of cash on hand to pay this one, however I've never been less impressed with a 30% gain in a day.  Nearly at breakeven.  Will ride this one out another half.

Questions need to be asked as to why CCV spent millions + years of time defending a lawsuit that they settled in the end - especially when they settled the other one last year around this time?  Maybe one of the reasons why the CFO is gone? (software write down maybe another reason?).   My suspicion is that they were on the hook for far greater than 43.5 million if they lost the CA and decided to cut their losses and get this mess behind them.


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## Smurf1976 (28 October 2019)

Up again today with a high of 23c and closing at 22.5c.

Anyone who bought at the low in July of 11.5c has doubled their money. Unfortunately however I  am not such a person.


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## sptrawler (28 October 2019)

I was in a cash converters the other day, wife next door at chemist warehouse lol, anyway their prices were a lot more sensible than the last time I was in there about 3-4 years ago. 
I don't know if it is because of competition, or just more realistic pricing, but there was a marked improvement.


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## jonnycage (18 December 2019)

yearly comp pick -  class actions out of the way,  and hopefully smoother going in 2020


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## The Triangle (26 February 2020)

Great result - Revenue up, profits up, online revenue up, when adjusted for class action.  But SP is down!  Go figure.  

Must be corona virus and the resignation of CEO (looks very amicable from the wording of the statement) that led this to being down.  Bought in more first up.  I believe this will be in the green today.


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## peter2 (25 May 2020)

Another company (like TRS) that should do well when economic conditions are tough.


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## The Triangle (11 February 2021)

Having sliced my hands continually over the past two years catching this falling knife I'm quite happy this is well above 20 cents and now up to 29 cents - which is probably still undervalued - Class actions behind the company (well class actions that we know of) they have about 17 cents per share of cash backing, still sitting around 50% of book value, and probably still have a NTA below the SP.  Without the class action the EPS from last year would be about 4.8 cents.

My worry is that I think the market must be expecting a dividend - which is why the SP has shot up.   I would still rather they do not pay a dividend until the end of the year and look to grow revenues through acquisitions.    I don't think EZcorp really needs the cash from a dividend.


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## The Triangle (25 February 2022)

An average result at the half for CCV @ $2000 total profit....    The first quarter was looking good (according to AGM) but second quarter must have been poor.  They are blaming covid for hurting traffic in to their pawnshops and as such have written off a few million, otherwise it looks like profit would have been about $7.5 million.  Loan book has grown considerably over the past 2-3 months so let's hope this actually translates to solid earnings.  

I didn't fully appreciate that they needed to write off bad loan values upfront even though revenue occurs further down the road. 

They still have 30 cents of net tangible assets, $65 million cash and at at SP of 24.5 cents today they are paying a 1 cent dividend (+8% fully franked).  Looks like they can just pay a 1 cent dividend for eternity with zero growth.    The value today is not as good as it was 2 years ago when it was in the teens, but I still keep more here than I do in the banks.


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## The Triangle (25 August 2022)

I know the annual reports will be out in the next few days, but going through their recent update from a month ago:

Loan book now increased by $22 million in the half to $214 million.
Cash on hand decreased by $7 million to $58 million (dividend payment was probably about $6 million)
Debt (from the $150 million facility) was drawn to $70 million - which I believe is the same as saying debt is undrawn to $80 million (in the half yearly) - So I take that to mean they've only spent their own money this half and none of the debt. 
My thinking is that they could have easily kept the loan book the same and had an extra $21 million in cash this half which is about 7.0 cps annually???.  I know things aren't that simple, but so long as these loans aren't entirely written off that's still a heck of a lot of $$$ to be generating at times like this - I'm probably missing something here.  Surely over the next few months the pawn shops are going to be moving a lot more inventory now that costs at jbhifi, harvey norman, etc. are going up,  Times getting tough and CCV will be the beneficiary. 

I'll also note the overlords EZcorp who are American pawn brokers owning ~40% of CCV have had a very very good month on the stock exchange and have added to their ownership of CCV in the past 12 months.   They have a market cap around $518 million USD and a loan book of about $200 million USD and make about $11-15 million per quarter (have a smaller loan book but a far bigger pawnshop footprint).  If you strip out their intangibles/goodwill their MC is about 150% of the Net assets whereas CCV MC is about 80% of net assets with goodwill and intangibles removed.


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