Forum Archive Index - August 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

CLH investors, please read the disclaimer at the end of this page.

 

Web site of CLH: < www.collectionhouse.com.au >

 

Presumably, the price of CLH fell to $ 4.60, presumably due to the BCH/DAD merger.

 

There are a number of items which I have considered:

 

1. The combined Aus./ NZ market is a large one and there is a lot of business available to efficient and cash endowed companies: CLH is one of them!

 

2. Outsourcing of debt by companies is becoming more common and this represents new business. CLH is a beneficiary of these higher margin debt ledgers. They concentrate on these opportunities.

 

3. My report of 23 April, 2001, mentioned some projected CLH share prices up to Oct/Nov 2003. I have no reason to change these forecasts.

 

3. After the merger, Baycorp Advantage will have some 222 mill shares and a lot of goodwill/ intangibles. Their P/E up to June 2002, will be close to 50 ( after abnormals).

 

CLH has about 95 mill. shares and few intangibles. I originally assesed their P/E to June 30, 2002 as 28; I believe that this should be upgraded to 26 or about half of that from the Baycorp Advantage merger.

 

I therefore feel, that the market will have to address this - in my opinion - anomaly at some stage.

 

Hence current prices for CLH ought to present a good buying opportunity.

 

I intend to upgrade my reports immediately after their first Annual announcement, some time this month, I presume.

 

Gerry 

Holds BCH and CLH     

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 Disclaimer: Readers are not asked to buy, hold or sell any shares. To do so will be entirely at their own risk.