CCV - Cash Converters
- Thread starter Trader Paul
- Start date
-
- Tags
- cash converters ccv
WOW what a wipe out 
I sure made a plunder on this one, who should I blame?
the management? the weather? the government?
still hold and see how things pan out and what are the impact on this one...
Next stock pick better be good to replace this paper loss
For those who has time
http://www.treasury.gov.au/consumer...nloads/reform_green_paper/Cash_Converters.pdf
I sure made a plunder on this one, who should I blame?
the management? the weather? the government?
still hold and see how things pan out and what are the impact on this one...
Next stock pick better be good to replace this paper loss
For those who has time
http://www.treasury.gov.au/consumer...nloads/reform_green_paper/Cash_Converters.pdf
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
WOW what a wipe out
I sure made a plunder on this one, who should I blame?
the management? the weather? the government?
still hold and see how things pan out and what are the impact on this one...
Next stock pick better be good to replace this paper loss
For those who has time
http://www.treasury.gov.au/consumer...nloads/reform_green_paper/Cash_Converters.pdf
Glanced through that paper and it was a very interest read with information about the industry that you wouldn't normally come across. For example:
- The average cash advance loan is only $320 yet total fees and interest income is $112. Including up to 35% establishment fee.
- CCV's profit from each $320 loan is ~$35. While you might think that is only 11% of the principle, one needs to remember that the average loan term is 30 days. So if hey do this 12 times a year that's a return of >100% p.a.
- Over 46% of people applying for these loans are government welfare recipients.
- Default rate is ~3%.
Never would I have imgaine anyone paying $112 just to borrow $320 for a few weeks. What is so urgent? Is there really no cheaper avenue?
Many might complaint about the gov't being a nanny state - and that would be true, but there were plenty of time to exit CCV when the news broke earlier this year. Now I understand why CCV has been doing these TV commercials focusing on their "retail/pawn store" business...
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
I'm certainly not complaining part of the risk investing in the market
When I lose money, it's my call and it is my fault no one is at fault
not management, not government, not the weather.
That's the right attitude that is lacking in most investors.
I wasn't referring to you btw when I said holders complaining... I was just quoting you for the link the CCV's submission.
Bought in ages ago at .59. probaly making a small gain or 0 still.
Do you reckon the Ezcorp deal goes through still because at .91c that would be great
Also, hopefully they rollout the financing faster overseas, its doing quite well in the UK at least
Do you reckon the Ezcorp deal goes through still because at .91c that would be great
Also, hopefully they rollout the financing faster overseas, its doing quite well in the UK at least
In the cash adv segment
UK loan book grew to $6 mil pounds (800% increase) but the Aus Cash Adv loan book is $50mil aus
Also
personal loans book is 200mil in aus, 10 mil in UK
McCoy Pauley
Get out of here Budweiser!
- Joined
- 12 November 2009
- Posts
- 616
- Reactions
- 0
Trading halt with respect to an announcement on the scheme of arrangement with EZCORP, Inc.
Would be a cracker if they offer 91c for the whole ccv -
but i doubt it..One can dream cant we?
"EZCorp derives about 80% of its revenue from pawn shops, with the remaining 20% coming from two-to-three-week payday loans, longer-term installment loans and other products"
http://online.barrons.com/article/SB50001424052702303599904576526871445644418.html?mod=googlenews_wsj?mod=googlenews_barrons
I found that interesting
http://online.barrons.com/article/SB50001424052702303599904576526871445644418.html?mod=googlenews_wsj?mod=googlenews_barrons
I found that interesting
McCoy Pauley
Get out of here Budweiser!
- Joined
- 12 November 2009
- Posts
- 616
- Reactions
- 0
EZCORP declining to continue with the transaction in light of the Government's announcement last week to tighten regulation on micro-lenders.
CCV looking to diversify away from its micro-lending business into other business areas and outside Australia to mitigate the loss of business stemming from any such legislation.
Looks like trading did not recommence today. Presumably there will be some selling tomorrow.
CCV looking to diversify away from its micro-lending business into other business areas and outside Australia to mitigate the loss of business stemming from any such legislation.
Looks like trading did not recommence today. Presumably there will be some selling tomorrow.
- Joined
- 1 October 2008
- Posts
- 3,733
- Reactions
- 391
Can't believe it has 14000 customers partitioning the government to soften the pending legislation!! Wonder if they are all debt collectors!
Morality aside.
Tomorrow is likely to be horrific for longs, however for a company like this having to focus more over seas is not such a bad thing if the model is working over there. Unlike most Australian financial institutions that get eaten overseas, especially in Europe and the Canada this one seems to be doing OK. The markets much bigger over there! Bob Brown has insensitivised CCV to focus on bigger fish!
With the Australian dollar so high and these overseas places having to raise interest rates sooner or later these overseas expansions will be less expensive than traditional efforts! Also with all the squeezing going on over their the business might do quite well.
The timing is perfect!
Might not be a bad longer term investment if it is gutted tomorrow and bought in the gutter.
Ezcorp may come back to buy the whole thing if tanks badly all be it at half the original offer price.
Real question is - How is the model really performing over there?
I haven't looked at that that closely.
Morality aside.
Tomorrow is likely to be horrific for longs, however for a company like this having to focus more over seas is not such a bad thing if the model is working over there. Unlike most Australian financial institutions that get eaten overseas, especially in Europe and the Canada this one seems to be doing OK. The markets much bigger over there! Bob Brown has insensitivised CCV to focus on bigger fish!
With the Australian dollar so high and these overseas places having to raise interest rates sooner or later these overseas expansions will be less expensive than traditional efforts! Also with all the squeezing going on over their the business might do quite well.
The timing is perfect!
Might not be a bad longer term investment if it is gutted tomorrow and bought in the gutter.
Ezcorp may come back to buy the whole thing if tanks badly all be it at half the original offer price.
Real question is - How is the model really performing over there?
I haven't looked at that that closely.
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
Or how long would it be before UK adopt similar regulations?
Good learning experience for me - need to consider legislative risk more closely next time with stock that is perceived as being morally reprehensible.
Guess I'll have to hold this for some time.
I wonder what are the chances that CCV and similar lenders can lobby the govt to amend this draft legislation to a more workable model?
Although if Labour doesn't make it back to power next election - it might not even be introduced and prospects might not be so bad over the next couple of years.
Guess I'll have to hold this for some time.
I wonder what are the chances that CCV and similar lenders can lobby the govt to amend this draft legislation to a more workable model?
Although if Labour doesn't make it back to power next election - it might not even be introduced and prospects might not be so bad over the next couple of years.
- Joined
- 5 May 2010
- Posts
- 269
- Reactions
- 1
Labor may not even make it to October.
Dream FAIL
Epic failure
on my part, oh well time to concentrate on the next super stars and double up, still hold CCV though, paper loss at this stage and law is only draft may not even make into legislation.. who know what may hold....once it is all finalise, I will reconsider the options.
mean while spend less than you earn and continue the saving dream and invest
