CVC - CVC Limited

[Ken]

CVC is a stock that I have been made aware of recently.

Does anyone here hold, or have some views on this?

 

[Ken]

Director just bought 1.8 million dollars worth.

 

[Captain_Chaza]

Is that You, Clever Officer Kenny????

 

[Captain_Chaza]

Ahoy Officer Clever Kenny

I won't be holding any book on this one ATM
The Sea and Weather Conditions still favours a Southerly move
No director can tame the seas whenever he or she thinks they can

Salute and Be Well

 

[Ken]

6.3% dividend.

Not the worst.

 

[Ken]

CVC Top 20 shareholders represent 65%.

number of shareholders increased from 639 to 1794 from june 2006 to april 2007.

Long term history of Performance and Asset growth.

Returns
1 year 33.96%
5 year 22.4%
10 year 24.87 %

MArket cap $300 million +
2006 Revenue $35.1 million Net profit $23.2 million
2006 earnings per share 18.7 cents
2007 Forecast Earnings per share 17.5 cents full diluted
shares on issue 171.8 million
Dividend fully franked 15 cents. fully fanked 100%

Dividend forecast 2008 12 cents
Balance Sheet - NA (approx) $1.90

Future Directions -
- continued development and corporate activity with significant investee companies.

- deployment of capital to exceed benchmark IRR of 15% per annum in core investment segments by indentification of listed and unlisted opportunities.

- strong focus on development of funds management assets, with particular emphasis of use of balance sheet to seed assets into larger funds where appropriate, and jv's where appropriate to attain specialist expertise.

- Deliver EPS growth and at least maintain 12c per share div




At the moment looks good value, for more info see the presentation just released. Stock is not rated by many, and seems undervalued compared to peers.

 

[Ken]

CVC bounced off 1.80 a number of times.

We are at an interesting point.

A few positive deals, and some publicity for this one, and i think its value will come through. Will be some more sideways action I suspect but I think the selling from the placement is over.

Worth putting on the watch list for when it breaks $2.00.

 

[Ken]

Captain Chaza,

The tide is turning big lad.

Look for that break above $2.

Still some way to go.

 

[Ken]

CVC on the news tonight.

Has pulled out over coles takeover private equity bid, but it is now in talks with james packer in regards to its PBL media assets.

No interest in the private equity player paying a 5-6% yield.

 

[Ken]

Director has purchased 200,000 shares in this company.

To the sum of close to 400k

I received a brokers report on them, and i am very bullish on them over the next 12 months.

Good long term investment, have returned 20% every year since listing.

A break over $2 is what we are waiting for.

 

[Ken]

http://asx.com.au/asx/research/Comp...panyName=&principalActivity=&industryGroup=NO


How is the chart looking... I am of the belief that we are very close to testing $2.00 resistance. Once we are through that I would expect some momentum.


Need some thoughts on this guys! They are substantial holders of SDG, and TRO... now if I am not mistaken these two stocks have performed really well of late.

SDG is at all times highs.

Am I clutching at straws here? I think CVC is about to run, any chartist have some views why it should or shouldn't?

Huntley's have a 12 month price target of $2.70.

Seems to me its worth getting involved with. Another dividend coming also.

Downside... i cant see any?? CLT they hold substantial amounts in which has performed badly but they are still buying.

Anyone else hold??

I guess its not a miner, or a oil and gas co...

Ah well. I'll take the 6% div.

 

[Ken]

CVC (CVC) RECOMMENDATION @ $1.87* ST:* BUY* LT:* OUTPERFORM* BCM*
KEY POINTS: *
o NTA rises sharply*
with strong Sunland*
price.*
o Now trading at a*
substantial discount*
to NAV & its peers.*
Year to 30/6 06(A) 07(E) 08(E)*
Profit Adj($m) 23.3 30.1 39.8*
PE (x) 10.0 8.1 8.1*
Yield (%) 3.2 6.4 6.4*
Franking (%) 100 100 100*
Target Price:* $2.90*
*
Net Tangible Assets Update – With the*
substantial increase in price for Sunland (SDG) to*
$4.20, the net asset value (pre-tax) of CVC has*
increased to $2.20 ps, as outlined in the table on*
right.* This values Cellnet at current market value &*
CVC’s interest in Mercury Mobility from the*
demerger & rights issue at cost.*
As CVC marks to market its listed & some private*
equity investments, the increase in Balance Sheet*
value is offset by an increase in deferred tax*
provision.* Adjusting for this provision &*
Intangibles, the NAV & NTAV have increased to*
$2.02 & $1.97 respectively.*
At $4.20, SDG comprises 37.3% of Net Assets (pre-*
tax).* Every 10 cent change in the SDG price,*
results in a 1.4 ¢ ps change in CVC net assets.*
We remain positive on CVC, expecting strong*
growth over the next few years, based on*
expansion of existing operations & utilisation of*
funds raised to broaden increase their highly*
successful operations, currently trading at a*
substantial value discount to its NTAV, peers and*
the general market.* *
Net (Tangible) Asset Calculation*
Item $m*
Cash 120.0*
Listed investments 206.8*
Private Equity 33.0*
Other 24.2*
Total 384.0*
* less Debt 0.0*
Net Assets (Pre-Tax) 384.0*
** Deferred Tax -36.9*
Net Assets* (post-tax) 347.0*
* less Intangibles -8.6*
Net Tangible Assets* (post-tax) 338.4*
* Issued Capital 171.9*
Net Asset value ps Pre-tax 2.23*
Net Asset Value ps Post-tax 2.02*
Net Tangible Asset Value ps Post-tax 1.97*

 

[Ken]

Well the directors can't get enough of their own stock. They keep buying.

http://www.cvc.com.au/pdf/CVC_BellPotter_Research_13062007.pdf

 

[Tysonboss1]

CVC is trading at about $1.58

I am thinking about taking a position.

At $1.58 the dividend % would be 9.4% based on a 15cent dividend

 

[shaunm]

hi tyson,
can you offer any suggestions on the sp perfomance over the last 12 months?
yes the dividend looks good to a potential buyer, but only of the sp gets support at 1.58.

 

[Tysonboss1]

hi tyson,
can you offer any suggestions on the sp perfomance over the last 12 months?
yes the dividend looks good to a potential buyer, but only of the sp gets support at 1.58.

The share price performance has not been so great recently,...

But at the moment I feel it is very under valued,... I will be buying into to this stock as part of my income trust.

I think that this company has some great assets spread accross a range of sectors so I am confident that they will be good performers over time,...

management have also started a share buyback plan, so this should support the share price.

I don't expect huge gains but I am confident that it should proove to have at least 25% growth p/a including dividends.

 

[michael_selway]

The share price performance has not been so great recently,...

But at the moment I feel it is very under valued,... I will be buying into to this stock as part of my income trust.

I think that this company has some great assets spread accross a range of sectors so I am confident that they will be good performers over time,...

management have also started a share buyback plan, so this should support the share price.

I don't expect huge gains but I am confident that it should proove to have at least 25% growth p/a including dividends.

Hm is thsi company affcted by Subrime? i.e is this a risky company (risks to EPS) to own?

thx

MS

Business Description
CVC Limited (CVC) operates as a management and investment company in addition to being a provider of investment capital.

Company Strategy
CVCs growth strategy is to structure an investment portfolio with a combination of alternative asset classes to deliver superior returns. CVC holds a diversified portfolio of asset classes including listed equity, private equity, venture capital, pooled development funds, property investments, management buy-outs and buy-ins and restructuring. CVCs portfolio is also structured to provide a blend of growth and income producing assets, including a particular focus on private equity/venture capital assets. CVCs investment criteria in its private equity business is as follows : companies exhibiting growth rates of 10% or more per annum in existing but expanding markets; strong competitive advantage and high barriers to entry (technology & economics); revenue model with recurrent and scaleable characteristics; protected intellectual property; quality management team with proven track record and clear exit strategy. CVC reported NPAT up 32% to $30.76m for the year ended 30 June 2007. CVC realised a $6.6 million profit from its long-term investment in Greens Food Limited following the sale of shares to Nestle Australia Limited under a Scheme of Arrangement. This result underpinned a $14.3 million profit from CVCs listed investments portfolio. Revenues from ordinary activities were $42.26m, up 20% from last year. Diluted EPS was 23.69 cents compared to 19.02 cents last year. Net operating cash flow was $649,602 compared to $4.3m last year. The final dividend declared was 6 cents, taking the full year dividend to 15 cents compared with 6 cents last year. CVC Group is forecasting $35 million NPAT and a full year dividend of at least 12 cents per share for 2008. This outlook is underpinned by increased management and transaction fees from post financial year investments in and restructuring of emerging listed companies including Ron Finemore Transport, Pro-Pac Packaging, Blue Energy and Mercury Mobility.

 

[countryboy]

well the worst of the subprime appears to be past us(brave words maybe!)

CVC
171 million shares
12mth buy back of 28 million
net assets as per Dec report $360 million
8 million in debt that i can see

Dividend of 15c last year
High $2 plus
Present share price $1.03 another innocent victim of subprime ????

potential for capital growth and dividends along the way

previous posters liked this above $1.50

any thoughts ?

 

[HelloU]

tricky business trying to make money from money ...... you turn your back for just a moment and suddenly all the money disappears. Luckily though that director bloke got all the payments sorted out before all that happened ...... yep, tricky business trying to make money from money.

Christians believe in heaven and hell ....... i wonder what sort of people they think go to hell?

 

[barney]

.. yep, tricky business trying to make money from money.
Christians believe in heaven and hell ....... i wonder what sort of people they think go to hell?

I sense your angst @HelloU

I had a quick look at their recent performance …

I understand your angst ….

Being paid to lose everyone else's money … wonder if you need a degree for that