CWY - Cleanaway Waste Management

[Knobby22]

Surprised to see no posts recently.
Been a good company.
TOX takeover has gone well. Getting into recycling more as China has left the market. Risen 30% since I bought but should get to $2 by next profit report.
Solid performer without the excitement of some like Afterpay or the artful dodger characteristics of the banks and AMP.
Pretty safe from disruption also.

 

[aus_trader]

Surprised to see no posts recently.
Been a good company.
TOX takeover has gone well. Getting into recycling more as China has left the market. Risen 30% since I bought but should get to $2 by next profit report.
Solid performer without the excitement of some like Afterpay or the artful dodger characteristics of the banks and AMP.
Pretty safe from disruption also.

Temporarily got out of CWY at this point in time due to overall market uncertainty. Did have it in my Medium/Longer Term Stock Portfolio till a couple of days ago and if markets calm down looking to get back in...

Good analysis

 

[Ferret]

I was a TOX holder and did ok with them. Should have moved my funds to CWY after the takeover.
Might grab a few once I feel this shakeout is over. Could be a while...

 

[Knobby22]

I was a TOX holder and did ok with them. Should have moved my funds to CWY after the takeover.
Might grab a few once I feel this shakeout is over. Could be a while...

I was a TOX holder but changed to CWY before the takeover, unfortunately.

 

[Ann]

Just thought I would add a 6 month chart. I draw my support/resistance lines on EOD, hence the overlap of high and low candlesticks. I have been flicking through the charts of the November Comp and yours' is one of the few which caught my attention Knobby. It looks as though it is going to break out very soon. I think it will be an upward breakout because of how the momentum indicator is shaped. There are a couple of overhead resistance lines around $1.80 and then $2. After that it is all blue sky. I think you chose a darn nice stock with this one!
Normal disclaimer...I could be wrong

 

[Knobby22]

Hi Ann

They took over a small company and it hurt them a little but I reckon when they next make an earnings announcement you could be right Ann. At least to $2. There is a lot of foreign investors leaving the Australian market at the moment but things can turn around fast.

 

[aus_trader]

Just thought I would add a 6 month chart. I draw my support/resistance lines on EOD, hence the overlap of high and low candlesticks. I have been flicking through the charts of the November Comp and yours' is one of the few which caught my attention Knobby. It looks as though it is going to break out very soon. I think it will be an upward breakout because of how the momentum indicator is shaped. There are a couple of overhead resistance lines around $1.80 and then $2. After that it is all blue sky. I think you chose a darn nice stock with this one!
Normal disclaimer...I could be wrong

View attachment 90346

Good Chart Analysis Ann, keep it up.

I have also bought back CWY into Medium/Longer Term Stock Portfolio after selling it during this market downturn. They are also looking at solutions to our country's waste/recycling problem that we are facing as evident by the recent announcement:

 

[$20shoes]

I chose CWY for the stock tipping comp. Looks like we've had a bit of a shake out recently. There might be some long entry opportunities coming up, depending on your risk appetite. It gets a bit spikey though doenst it?

 

[barney]

I chose CWY for the stock tipping comp. Looks like we've had a bit of a shake out recently. There might be some long entry opportunities coming up, depending on your risk appetite. It gets a bit spikey though doenst it?

It does and it did …. but the Chart has really "cleaned up its act" (boom boom) since you posted @$20shoes …… Its making that recent push lower look like a shakeout! … Good luck with it.

 

[peter2]

CWY has rallied nicely with the market and is now poised to have another go at the 2.00 level.

The chart below is part of a research project and should not be considered a recommendation to buy this stock. If you want to read more about the project log in to read the P2 Weekly Portfolio thread.

Setup: Bullish Key reversal in an up trend.
Grade B due to my concerns that price can spike both up and down occasionally.
Buy limit: 1.90 iSL 1.73, trail exit stop, let it ride

 

[Knobby22]

Great interim result today.
Revenue up 45%, profit up 35% dividend up 50%.

 

[barney]

Great interim result today.
Revenue up 45%, profit up 35% dividend up 50%.

Solid gap up on good Volume.

$18 million turnover so far today and looks like closing near the highs of the day … Can't ask for much better than that.

 

[$20shoes]

Very pleasing. Its turned into a nice trade indeed.

 

[Kryzz]

CWY looking very interesting here, consolidating around 52 week highs. CBA recently purchased 72 million units of this stock a couple of weeks ago too.

 

[Trav.]

CWY popped up on my daily scan. Interesting chart as it has 2 x unfilled gaps and appears to be travelling very nicely. Small dip on Friday but expect Monday to continue run. No real news but noticed that director was buying mid July.

 

[sptrawler]

Cleanaway gave a great set of numbers, net profits after tax up 43% to $140m, yet they were hammered on the market.
Currently down 12% to $2.07, why would that happen, maybe the 1.9cents dividend upset the punters.

https://www.businessnewsaus.com.au/articles/cleanaway-shares-plunge-despite-profit-surge.html

 

[rnr]

@sptrawler
The Half Yearly results were released on Feb 14, 2019 at 8:16 am & the Yearly results released on Aug 15, 2019 at 8:17 am. What I find difficult to comprehend is that the market has opened on both days PRIOR to the release of the respective reports and yet price gaped up from a CLOSE of $1.945 (13/2) to OPEN at $2.13 (14/2) and gaped down from a CLOSE of $2.38 (14/8) to OPEN at $2.03 (15/2). Where does one buy one of these crystal balls?

 

[Knobby22]

I suppose it puts them in the box seat as the liquidation occurs.

Cleanaway Waste Management Limited (ASX: CWY) announces that it has acquired the senior secured debt (the Debt) in the SKM Recycling group (SKM) from the Commonwealth Bank of Australia, the largest lender to SKM, for approximately $60 million.

The Debt is secured against all assets of SKM with the exception of its Glass Recovery Services business (GRS). This includes the property, plant and equipment that form part of a network of five recycling sites, including three material recovery facilities and a transfer station in Victoria and a material recovery facility in Tasmania. The site in Laverton, Victoria includes an advanced plastic sorting facility which separates plastics from material recovery facilities into clean, individual polymer grades for sale or input into a pelletising facility.

 

[sptrawler]

I suppose it puts them in the box seat as the liquidation occurs.

Cleanaway Waste Management Limited (ASX: CWY) announces that it has acquired the senior secured debt (the Debt) in the SKM Recycling group (SKM) from the Commonwealth Bank of Australia, the largest lender to SKM, for approximately $60 million.

The Debt is secured against all assets of SKM with the exception of its Glass Recovery Services business (GRS). This includes the property, plant and equipment that form part of a network of five recycling sites, including three material recovery facilities and a transfer station in Victoria and a material recovery facility in Tasmania. The site in Laverton, Victoria includes an advanced plastic sorting facility which separates plastics from material recovery facilities into clean, individual polymer grades for sale or input into a pelletising facility.

With the issues surrounding recycling and processing it, you wonder if it is a good addition to the business, I know at council level the whole recycling issue is a pain in the proverbial.
If they have a plan for getting rid of the processed material, that's good but a lot that was sent overseas, was sent back.
Also I'm not sure if Australia has many plants that actually process the product, to a usable state, as far as I know we just sort it then send it. Which is fine as long as someone will take it, if they stop taking it, BIG problem.
Maybe the property plant and equipment is worth more than the $60m?
I don't hold CWY, but is on the watch list.

 

[Knobby22]

With the issues surrounding recycling and processing it, you wonder if it is a good addition to the business, I know at council level the whole recycling issue is a pain in the proverbial.
If they have a plan for getting rid of the processed material, that's good but a lot that was sent overseas, was sent back.
Also I'm not sure if Australia has many plants that actually process the product, to a usable state, as far as I know we just sort it then send it. Which is fine as long as someone will take it, if they stop taking it, BIG problem.

I think it all depends on whether the State Governments are willing to spend money to develop decent recycle facilities that actually recycle. as you say, passing the buck to other countries is becoming a big problem already. If they are then companies like Cleanaway could get a cut.