CCV - Cash Converters

[McLovin]

Thanks for that.
So would I be correct in thinking that another positive is that by freeing up capital to make more loans they are essentially growing the brand name/quickly gaining more customers and eventually down the track won't have to keep securitising because as the business matures the cashflow from operations is more than sufficient to self-fund the loanbooks..?

It sounds to me like now that they have proven their ability in the loan-sharking business they want to move to a securitised business model, which should be good for shareholders; less working capital.

 

[skc]

Thanks for that.
So would I be correct in thinking that another positive is that by freeing up capital to make more loans they are essentially growing the brand name/quickly gaining more customers and eventually down the track won't have to keep securitising because as the business matures the cashflow from operations is more than sufficient to self-fund the loanbooks..?

You probably never want to self fund the loan book anyway... it's not very capital efficient.

 

[Knobby22]

- Loans currently sitting on CCV's balance sheet are packaged into loan securities (hence the term "securitise") and sold to investors. Let's call them LOWR (Loan of Welfare Recipients) Premium Income notes.

- CCV sold the future income associated with these loans (so it income reduces), but it frees up its balance sheet from the LOWR sale proceeds to make further loans. It also no longer bears the credit risk on those loans.

- The benefit is that they are able to essentially work their capital harder by recycling them. For potential negatives see some of the causes of the subprime crisis.

It will be interested to see if buyers will come for them. I presonally wouldn't touch them especially after the GFC example.

 

[ROE]

It will be interested to see if buyers will come for them. I presonally wouldn't touch them especially after the GFC example.

Why not? if they disclose their risk...hell there are heap of buyers for Corporate Junk Bonds

This is very different from CDO mangle with CDS stuff ....

 

[skc]

It will be interested to see if buyers will come for them. I presonally wouldn't touch them especially after the GFC example.

There's a price for everything... as long as they don't fall into a hole where they originate the loans without regards to credit quality.

 

[VSntchr]

Some wild price action today. Dropped right down to 68c but has now clawed back partially to 0.74.

Anybody heard any news regarding CCV?

Last time it moved like this was when the AFR was pumping articles on payday lending caps....

 

[DocK]

Had this on my watchlist - what's with the huge dump just prior to a trading halt for capital raising? Smells very fishy to me! Does ASIC ever investigate this type of action? I'm speculating that one large sale may have been enough to set off a lot of stop-losses at 0.90c or thereabouts - I'd be fuming if I'd recently bought some.

 

[RandR]

View attachment 49774

Had this on my watchlist - what's with the huge dump just prior to a trading halt for capital raising? Smells very fishy to me! Does ASIC ever investigate this type of action? I'm speculating that one large sale may have been enough to set off a lot of stop-losses at 0.90c or thereabouts - I'd be fuming if I'd recently bought some.

Im more interested in the reasoning and use of the capital raising, because its sent CCV back down to a price point where im monitoring it again, but dont want to make any moves until looking into what exactly there planning on doing with the capital.

 

[VSntchr]

Only had time to flick thru the results but ROE will be happy with a 33% increase to 2c for the half!

Results all look good and the buying back of franchises continues...will have a deeper look tonight.

Let the good times roll!

 

[princeplanet]

Why did this stock drop 6% today?

 

[Boggo]

Why did this stock drop 6% today?

Director sold a few.

 

[princeplanet]

I know the ex div date is tomorrow, and expected a drop then, but I missed out on the dividend because the down spike today (only just) triggered my stop loss before the price rebounded. If it's true the director sold off in order to shake off the div hunters, is this illegal? As well as missing out on the div, I lost $ 2K from this "shonky" practice. I'm pissed!

 

[Boggo]

Director sold a few.

I am familiar with CCV as I have a reasonable holding in my SMSF.

This news and approaching ex may have spooked a few.

 

[Boggo]

I know the ex div date is tomorrow, and expected a drop then, but I missed out on the dividend because the down spike today (only just) triggered my stop loss before the price rebounded. If it's true the director sold off in order to shake off the div hunters, is this illegal? As well as missing out on the div, I lost $ 2K from this "shonky" practice. I'm pissed!

This is one of those stock that has regular spikes on the daily.
I tend to go with weekly charts for the SMSF and this is one that needs a bit of room to move around once you get 'established' in the trade.

Close to ex dividend I tend to make sure that my stop caters for the anticipated ex div dip especially if I am in a position to give back a bit.

(click to expand)

 

[princeplanet]

Seems at least you were onto it... What would you do if you were me, maybe buy back in while it's cheap??

 

[Boggo]

Seems at least you were onto it... What would you do if you were me, maybe buy back in while it's cheap??

I struggle with my own trading with three accounts so asking me for an opinion could easily end in tears

As far as CCV is concerned I am happy to sit on it for a while longer in my SMSF until it stalls or reverses

 

[VSntchr]

As far as CCV is concerned I am happy to sit on it for a while longer in my SMSF until it stalls or reverses

CCV is a pretty big weighting in my portfolio too.
From a fundamental perspective, I think that its currently a little below value...but I really like the growth prospects so not considering selling anytime soon..

 

[pavilion103]

I'm a short term trader but I liked the setup on this one so I bought yesterday.

 

[Boggo]

I'm a short term trader but I liked the setup on this one so I bought yesterday.

Just out of interest pav, how does it look on a weekly chart using your layout.

My short term finds seemed to get spooked rather easily lately but there are a few like CCV that seem to keep on going.

(click to expand)

 

[chops_a_must]

Yep.

A real nice chart.