CCV - Cash Converters

[Trader Paul]

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



=====

 

[michael_selway]

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



=====

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

 

[exberliner1]

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

 

[eladamrine]

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
• Corporate Stores (Australia)
• Corporate Stores (UK)

FINANCE OPERATIONS
This segment incorporates MON-E Pty Ltd which was acquired by Cash Converters International on 13 October 2006, Safrock
Finance Group, acquired on 29 September 2006 and Cash Converters Finance Corporation Limited.
Safrock provides loans to customers through the Australian Cash Converters Network. Franchisees act as agents for Safrock and
receive commissions for all personal loans transacted through Safrock. At the 30 June 2008 the loan book stood at $13.8 million
with a provision against bad debts of $1.9 million.
A total of 20,558 (2007: 16,012) loans were approved and a total principal amount of $28,540,000 (2007: $23,500,000) was lent out
during the period.
Safrock net profit before tax for the year was $8,219,381 (2007: $5,805,058).
MON-E operates the internet platform and the software for Cash Converters franchisees and corporate stores who ultimately provide
cash advances to their customers. The total commissions received by MON-E increased by 9.3% over the corresponding period last
year. The total principal loaned was up 7.4% and customer numbers increased by 18.7%. Currently 100 stores use the MON-E
software. The stores in South Australia operate under the “Quickdraw” software from which Cash Converters receive a commission.
MON-E net profit before tax for the year was $9,014,306 (2007: $7,992,806).
Cash Converters Finance Corporation Limited (CCFCL) provides working capital loans to the Australian franchise network only. The
average loan is for $150,000 with an interest rate of 12% to 13%. The loan is secured against the assets of the franchised store.
During the period CCFCL made a net profit before tax of $66,193 (2007: $92,420).

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?

 

[shakazulu]

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

 

[Calliope]

Re: 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

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.

 

[Fool]

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

 

[ROE]

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

 

[wecanallinvest]

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.

 

[McCoy Pauley]

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.

 

[wecanallinvest]

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.

 

[ROE]

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...

 

[KurwaJegoMac]

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.

 

[ROE]

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

 

[ROE]

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

 

[ROE]

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

 

[robusta]

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

 

[IFocus]

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

 

[Spudded]

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

 

[ROE]

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