CLH....
Hi TG,
I don't know about the chart of CLH looking so,so....IMO the chart looks great.
We are in the cycle of interest rates increases which means more revenue for CLH.
Anyway, here are some reports on this stock....
Debt recovery services
Investing in companies that offer receivables management and debt collection services is another means of claiming a stake in the outsourcing industry. Baycorp Advantage (BCA) and Collection House (CLH) listed on the ASX in 1998 and 2000 respectively. Investors could not get enough of CLH, and it took less than a year for the company's $1 shares to hit $5.50. However, it has been a downhill ride since then, with CLH not meeting market expectations and a profit downgrade at the start of 2003 triggering a share price fall of 50 per cent. CLH has clawed its way back from a low of $1.05 and looks as though it has addressed some of the issues that have undermined its performance. BCA has travelled a similar road, but is considered too expensive at more than 20 times Bell Potter Securities' FY03 forecast earnings.
Collection House (CLH)
Collection House was a star performer in 2001 as investors identified it with the trend towards outsourcing. CLH's share price surged from $1.50 to $5.50 in less than a year; however, it was all downhill until it struck a low of $1.05 last year. CLH is now trading in the vicinity of $2 and based on Bell Potter's financial year 2004 forecasts this represents a p/e of less than 12.
In a climate of rising interest rates and high levels of household debt, CLH's debt recovery services may be in demand. Surprisingly, Bell Potter remains negative about the company, citing the company's poor financial year 2003 result and the apparent increased cost of buying debt as key concerns. However, CLH is seen as a leaner, more focused operation, and its financial year 2003 result does not provide an accurate picture of the company's future prospects.
From a corporate perspective, CLH has had an extreme makeover, appointing a new chairman, vice chairman, general manager finance and chief executive officer in the last 12 months. This appears to have had the desired effect, with a significant decrease in staff numbers and generalised cost cutting expected to restore investor confidence in financial year 2004. CLH could surprise on the upside with its extensive debt bank having the potential to underwrite strong growth.
And finally here is a rescent report from fatprophets site.
Colection House (CLH) represents another recovery candidate in our opinion. The company experianced growing pains following an initial public offering in october 2000. Setbacks were incurred integrating and consolidating the many acquisitions made following listing on the ASX. The rapid pace of the expantion led to a fall in revenues and profits. We believe these problems are now rectified. In the year ahead, management anticipates an improved financial performance to be driven by healthy receivebles recoveries, strong growth from acquired debt portfolios, and a solid increase in revenues from the insurance and commercial contingency division. CLH is a leading player within Australia's receivable management industry and, in our opinion the current price does not fully reflct future earnings potential.
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