Market cap: $70m P/E: 4.86 P/Book: 0.94 Dividend Yield: 8.6% Something like a mini-Berkshire (without the insurance “float” to source new capital), HGL is a conglomerate of diversified import businesses serving niche markets such as model cars, school hats, and special format printing. HGL make no effort to integrate their acquisitions, choosing to let senior…
Author: Leon
Cash Converters’ strategic alliance with EZCORP (CCV)
Yesterday it was announced that EZCORP would be increasing their stake in CCV from 33% to 53%. This would be initiated through a 91c per share offering, pending approval from 50% of the shareholders and the Supreme Court of WA. In addition to this controlling interest, Cash Converters and EZCORP will enter into a strategic…
BSA Limited (BSA)
Market Cap: $60m P/E: 6.4 P/B: 0.88 Dividend Yield: 7.1% On the surface, BSA ticks all the boxes for value investors. Selling for 6.4x earnings and 0.88x book value, BSA is sitting on $17m of cash, has less than 50% debt to equity ratio, and hasn’t missed a dividend since they commenced paying in 2006….
BigAir Group Limited (BGL)
Market Cap: 20m P/E: 10.9 P/B: 2.34 Dividend Yield: 0% A niche Wimax operator, BigAir operates a national network in 7 of Australia’s biggest cities. The company is geared towards delivering services to the wholesale market, leveraging the sales forces of other organisations who use BigAir services to complement their offerings. The key advantages of…
Amcom mid year results (AMM)
This week Amcom announced their half year results to the market. Key points: Revenue up from 29m to 41m 43% NPAT up from 7.6m to 9.9m 30% Final dividend increased from 0.4c to 0.6c up 50% Much of these results are flowing on from the EOFY10 results Amcom posted in which earnings increased by 42%….
Supply Network (SNL)
Market Cap: 17M P/E: 9.2 P/B: 1.31 Dividend Yield: 6% With a market cap of only $17M and thin trading volumes, a sensible investor would shy away from a company like Supply Network, which supplies truck and bus parts. Fortunately these disadvantages are minor enough not to be insurmountable, and Supply Network’s niche operations generate…
Amcom (AMM)
Market Cap: $229m P/E: 10.9 P/B: 1.55 Dividend Yield: 4.5% This gunslinger of the wild west has had an interesting history. Founded in Perth in 1988 as a cabling contractor, Amcom gained a carrier license in 1998. In 1999, it was acquired by a gold exploration company called International Minerals, who divested their gold project…
Cash Converters (CCV)
Market Cap: 298M P/E: 11.1 P/B: 1.83 Dividend Yield: 4.5% The first thing you notice when you look at CCV’s financials is the cumulative shareholder return over the past decade: 37.7%. This means a $10,000 investment in the pawnbroker and personal loans company in 2001 would have grown to $245,097 today. But that’s history. Looking…
Colorpak (CKL)
Mkt Cap: 52M P/B: .85 P/E: 8 Div Yield: 5.1% My first buy of the year occurred after offloading the last of my blue chips. Colorpak designs and prints packaging, a decidedly dull and steady business. Recently CKL acquired Carter Holt Harvey’s packaging business, for a mere $5m, funded from existing cash and debt facilities….