CCV - Cash Converters

[Intrinsic Value]

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.

 

[fanger]

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.

 

[ROE]

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.

 

[ROE]

Stock got hammered today so maybe your selling may be vindicated

 

[VSntchr]

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...

 

[Spudded]

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/

 

[ROE]

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

 

[bigdog]

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.

 

[bigdog]

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.

 

[ROE]

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.

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

 

[Pioupiou]

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?

 

[Plumber1]

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.

 

[BigLeon]

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.

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?

 

[puppyboy]

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.

 

[robusta]

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.

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.

 

[VSntchr]

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....

 

[robusta]

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....

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

 

[puppyboy]

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....

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....

 

[Pioupiou]

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.

 

[VSntchr]

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.