Forum Archive Index - January 2001

["Peter Maiden" <pmaiden@xtra.co.nz>]

Gerry - firstly into insurance with QBE, then hedging your bets with the TAB, I still haven't worked out where the watersiders come in with LAC - but now collecting debts (from whom?) with Collection House CLH. A pretty diversified lot.

 

The prices of the earlier  three you asked my opinion of have gone as predicted. QBE still waiting to get through $10,00, TAB still solid around $3.30 and LAC responded (as it always seems to do) to some good news this week.

 

Here goes with CLH. Pretty snazzy website - thats a good sign to start with. The business they are in depends on technology and a good website at least gives you the comfort that they know what they are doing.

 

The vibs from the chart. Since listing a great rise from $1.37 to current $3.41 (has reached $3.52). Usually hot stocks like this head north, get to a certain level and drift back to point where the market is comfortable ( look at the FRU, ROC, RMG and CSG charts).

 

That has not happened with in CLH. In the CLH case the rise has been interestingly 'structured'. The price has formed a base at around the $1.70, $2.40 and $2.80 marks. It now seems pretty relaxed at the $3.30 mark.

 

Rising in this way suggests that as CLH has come to the attention of a broader range of investors those investors have done their homework and liked what they have seen - and so on.  That to me is a very positive sign and signals that the market considers this a very strong stock.

 

Being part of a S&P Index has also raised the profile of CLH. With a market cap of $A234M it is by no way a small company (in NZ terms)

 

Over time likely to rise from present support level and find another at $3.60 - $3.70 sometime in the next six months.

 

Gerry - thata my view from looking at the chart etc,  Know nothing of the fundamentals etc.

 

It would be interesting to hear how RMG supporters see CLH, comparison of turnovers, market exposure etc. From this brief sojourn into the world of debt collecting CLH seems a better bet.

 

Good luck

 

Peter