CLH 4.44% 21.5¢ collection house limited

Trying to understand CLH

  1. 715 Posts.
    lightbulb Created with Sketch. 40
    Hey guys,

    I've sat on the sidelines watching this one for many years, I'm a value-based investor, this security presents itself as potentially the greatest value proposition on the ASX today. So what's going on?

    Book value - .6 ($1.65)
    ROE - 14.1%
    Cash - 54.1 million
    Operating profit - 51.3 million
    And of course, paying income (if you're into that).

    All very decent numbers that most listed companies aren't achieving.

    Most of these figures are roughly 50% of its closest listed competitor Credit Corp Group (CCP), however, while CCP has taken off from .40 to $33 in the last 12 years. Collection House seems to have just made decent cash, paid a solid income and sat for the most part stagnate.

    So I guess my question is for those that have followed this company, why does that market neglect these above-average returns? Do you put this down to poor management, over-diversification or something else?

    Without this missing piece, I find it hard to press the buy button even at these types of valuations.

    Appreciate your feedback in advance.






 
watchlist Created with Sketch. Add CLH (ASX) to my watchlist
(20min delay)
Last
21.5¢
Change
-0.010(4.44%)
Mkt cap ! $30.51M
Open High Low Value Volume
22.0¢ 22.0¢ 21.0¢ $61.25K 285.4K

Buyers (Bids)

No. Vol. Price($)
2 8453 21.5¢
 

Sellers (Offers)

Price($) Vol. No.
22.0¢ 26740 2
View Market Depth
Last trade - 15.36pm 05/03/2021 (20 minute delay) ?
(live)
Last
22.0¢
  Change
-0.010 ( 2.22 %)
Open High Low Volume
21.5¢ 22.0¢ 21.0¢ 31462
Last updated 14.34pm 05/03/2021 (live) ?
CLH (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.