CCV - Cash Converters

[ROE]

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]

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

Thanks

Rick

 

[VSntchr]

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]

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]

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]

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%

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

 

[Plumber1]

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]

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]

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]

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]

Is the official code now CCVDA?

 

[kreagh]

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]

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]

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]

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]

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

 

[skc]

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]

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

 

[kreagh]

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]

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.