CCP - Credit Corp Group
- Thread starter ilikegirls
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Cheers for that, he got out a lot earlier than I thought.
Though as it is only a very small portion of my portfolio, I will continue to hold this one for at least a couple years!
Bit of contrarian investment is never a bad thing!
I'm still holding like I said I dont bold until a few years into the turn around and the business proved to be a bad choice... then I accept defeat...
I'm very surprised CAM get out so early without giving them a chance to restructure after they are so pro CCP.
That tells you they got no guts to stick by their convictions but are quick to claim credit for bull market run. Take real courage to be a contrarian, where they walk the talk.
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I'm not surprised at all. If you'd just met with management who told you while looking in the eye "everything's fine" and then 3 weeks later come out with a second profit downgrade, would you have any faith in them to execute a re-structure and let you know candidly how it was going? Better to cut your losses and redeploy the cash elsewhere. Plenty of other opportunities for finding value in a market like this.
Maybe they pestering the management too much for such a small stake that doesn't even register on the substantial share holder list so they give them a bit of walk down the garden
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Maybe they pestering the management too much for such a small stake that doesn't even register on the substantial share holder list so they give them a bit of walk down the garden
ha ha ha.
I cant read the handwriting either. But good to see some optimism in this one. Trouble is, in the short-term, there will be a lot of profit takers all the way up the price scale who will act as resistance.
However, long-term, could well and truly be bucketloads of money made for those invested. Prooven historical success.
As you said earlier ROE, walk to the amazon for 3 years, hide this one under the rug, because its price collapse appears enough to even scare the contrarians at the moment, who appear to be bailing out as well.
As for the technicals, hopefully this upturn is enough to buck the trend. MACD crossover and RSI just turned up from EXTREME oversold conditions. Volume remains relatively flat however, in comparison to recent times.
Thx.
The whole of the bank loan facility of $144.6M has an expiration date of 3 January 2009. That now shifts the liability from Non-Current to Current. With the share price collapse and the problems in credit markets at present, one would now think that CCP will have a major hurdle in re-financing this facility when it falls due. If covenants are broken in the meantime, then this could bring forward this problem.
My calculations on the latest figures released reveal a slide in revenue collection at the rate of 36.5% pa whilst available for sale financial assets are growing at the rate of 33.3% pa. This is a real crunch.
CCP intends to cut back on ledger acquisitions in order to handle the cashflow problem. This whole affair is going from bad to worse. Expect more bad news, especially when the $5M review gets underway!
My calculations on the latest figures released reveal a slide in revenue collection at the rate of 36.5% pa whilst available for sale financial assets are growing at the rate of 33.3% pa. This is a real crunch.
CCP intends to cut back on ledger acquisitions in order to handle the cashflow problem. This whole affair is going from bad to worse. Expect more bad news, especially when the $5M review gets underway!
ok someone pointed out to me it's Veduta Estates that took the stake.
According to this history they used to hold 20% of CCP, locked in their profit (smart move) and got out between 2005-2006. Now they are back dont know the reasons behind it.
http://au.finance.yahoo.com/q/ast?s=CCP.AX
According to this history they used to hold 20% of CCP, locked in their profit (smart move) and got out between 2005-2006. Now they are back dont know the reasons behind it.
http://au.finance.yahoo.com/q/ast?s=CCP.AX
battiwallah
Value only - buy cheap & keep
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On the 27th February “Veduta Estates” and “Vahivi P/L” of Northbridge, NSW bought a total of 2,010,014 plus 313,139 (+2,323,153) shares in CCP. This makes the transactions total about $1.5M. The 2007 annual report shows Veduta having 2M shares, so this new purchase gives them a total of about 4.3M and thus a 10% stake in the company (current shares on issue are about 43.3M).
Veduta Estates have previously had large interests in CCP. In early 2005 they had 33% of the issued shares which were subsequently reduced to 23% and then 13% in late 2005.
The “Sole Proprietor” of these two companies (Veduta Estates and Vahivi) is a Mr Henry Calleia. Now Mr Simon Calleia is currently a director of CCP and was previously managing director of CCP. Presumably Henry Calleia is a close rlation of Simon?
Conclusion is that Mr Calleia is an astute purchaser with an intimate knowledge of the company and is risking his own capital to buy shares at a time when other investors with less knowledge are abandoning it.
This is not a time to give up hope!
Nevetheless, the notes provided by meglas are useful and should be kept in mind.
Veduta Estates have previously had large interests in CCP. In early 2005 they had 33% of the issued shares which were subsequently reduced to 23% and then 13% in late 2005.
The “Sole Proprietor” of these two companies (Veduta Estates and Vahivi) is a Mr Henry Calleia. Now Mr Simon Calleia is currently a director of CCP and was previously managing director of CCP. Presumably Henry Calleia is a close rlation of Simon?
Conclusion is that Mr Calleia is an astute purchaser with an intimate knowledge of the company and is risking his own capital to buy shares at a time when other investors with less knowledge are abandoning it.
This is not a time to give up hope!
Nevetheless, the notes provided by meglas are useful and should be kept in mind.
Yes going forward there are definitely some risks to the business, like any business with debt and reduce earning, but I cant help but wondering they have 300,000 plus people paying them debt, I assume a lot of these are re-occurring schedule payment like $50 or $100 bucks a week/fortnight as their pay come into their account so that should give them a decent stable income for part of their book.
We will find out in 6-12 months time wont we
We will find out in 6-12 months time wont we
Maybe Mr Henry can lend CCP some cash since he made so much profit from it assume he sold around 12 Millions shares between 6-7 bucks he would pocket 50 Mil or so profit
Did some research and found this in 2002 Annual Report
"Fees regarding services to the company re business acquisitions totalling $24,002 were payable to Mr H. Calleia, a family member of Mr S. Calleia, the Managing Director of Credit Corp Group Ltd."
so they are definitely closely link.
Yeah it's really hard to envisage any good news coming from these guys in the short to medium term. We've had two rapid downgrades in succession, what is the likelihood of any positive news coming out of their review? Will things magically appear to be better than they were? A purchase of CCP currently has more to do with speculating than investing.
That said, battiwallah makes an interesting observation about the insider buying of Mr Calleia. The so-called smart money may be getting in.
Assume smart money is right, the real test is when Henry increase his stake to more than 10% and also when you down and crying it's better to paint a bleak future and over deliver than paint a good future and under-deliver.
I notice TLS do that when Sol took over and I come in at $3.50
I call it shot the dead dog and raise a new puppy
Maybe it's a good thing, bring back Simon Calleia, don't know why he hand over the job to Lucas a couple years ago got to find out.
Simon is doing a good job up until then, I'm not sure who else apart from Lucas lead alot of people down the garden path about CCP earning, so maybe some of these guys need to go too.
michael_selway
Coal & Phosphate, thats it!
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Maybe it's a good thing, bring back Simon Calleia, don't know why he hand over the job to Lucas a couple years ago got to find out.
Simon is doing a good job up until then, I'm not sure who else apart from Lucas lead alot of people down the garden path about CCP earning, so maybe some of these guys need to go too.
Hm another director resignation
Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 45.0 23.1 24.1 27.4
DPS 23.0 4.0 8.0 15.0
Thx MS
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Up 25% because the managing director resigned?
This market is insane!
SDG is the weirdest of the lot!
This market is insane!
SDG is the weirdest of the lot!
Maybe there are a lot more people who dont like Lucas and just wait for him to go before they buy the stock
In reality a shake up Lucas must go anyway because he mislead the market about earning and any institution that are going to buy into this stock in the future they wont accept that sort of management.
All round good news Bring back Simon
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