Tag Archives: clh

3 Picks for March

22/3/16

So far its been a dog of a year – not one of those nice happy dogs more like one of those rabid dogs that attacks people and subsequently needs to be put down – with the ASX200 sitting at 5400 at the start of the financial year and currently we are hovering around the 5100 mark which is around a 6% loss for the year so not fun times (especially if you are a BHP shareholder which has lost more than 30% in the same period)

anyways lets have a look at some stocks which have potential

ASX: CLH РCollection House

Collection house are essentially deb collectors

Growth in Government Services Collection centres & Debtor finance business starting

However revenue Growth marginal from existing business

Price has dropped by from high of $ 2.5 to $1.0  effectively dropped by 60% in the last 9 months whilst NPAT has only dropped by 26% and most of that is to do with a one off restructuring cost of $1M

expected Profit this year of $16-17M which is a PE of around 8

Current Price $1.00 – with 8% dividends and possible re rating of 12 PE – The Price Target I have is conservative at $1.40

ASX: IQE – Intueri Education Group

this New Zealand based education group plays in the vocational education space (Hair cutting, beauty therapy, design & arts, IT , Hospitality, Diving, Online education and Cookery)

There were a few incidents which caused the share price to drop from a high of $2.22 to 22c to now sit around 40c – the main incident being an investigation by the serious fraud office in relation to one of the colleges (quantum education group) the other being a fatality in the dive school that happened in 2014

EBITDA Guidance is around $20M for the year with NPAT to be in the range of $5-8M

current mkt cap is 40M

Current Price $0.40 – My price target is in the range of $0.60-0.80 based on a 10 PE with growth and future dividends

ASX: RSG – Resolute

Gold Producer

Half year profit $60 M on track for 100-120M

Lots of Cash ($33m) and gold bullion ($42M) , a AISC (All-in-Sustaining-Cost) of $1250 AUD vs Gold Price of $1500 AUD

significant amounts of Debt paid off by 30 June 2016

significant Gold reserves, Low enterprise value per ounce of Gold

Gold price moving higher in uncertain economy

current Market Price $380M

PE 3.2-3.8

Current price – $0.60 – price target of 1.2-1.8 hinges on the Gold price stability and increase