Cash Converters a quiet achiever. Chart Snapshot.

 

Disclaimer

This post is information of a general nature for those with an interest in technical analysis. Do not rely on it for investment purposes without obtaining qualified professional investment advice. The writer currently has no CCV shares.

Background information

http://www.cashconverters.com.au/

The business

Get paid to recycle.
At Cashies, we’ll pay you to recycle your quality goods. Bring in the things you no longer need, and we’ll give you instant cash in return.

Second hand means tried and trusted. 
With over 150 stores around the country, you’ll be surprised by the amount of quality goods you can find – all at affordable prices. Most items come with a warranty too, so you can shop with confidence. Or while you’re here, go to our Webshop to bid or buy online.

We approve more people every day. 
At Cashies, we offer loans from $50 up to $2000. Our loans are flexible so you’ll always get the loan that’s right for you.

About Cash Converters

Over 700 stores in 21 countries worldwide.

In 1984, Cash Converters started as a single store in Perth, Western Australia.

It was founded by Brian Cumins and a group of partners whose vision was to transform the humble second-hand store into a chain of professional retail outlets.

Today, there are more than 140 Cash Converters stores throughout Australia, and over 700 worldwide.

Cash Converters is listed on the Australian Stock Exchange (CCV). For updated information visit our international site by clicking here.

Cash Converters, is always looking for ways to improve the service we provide. And as you can see, with recent innovations like Webshop, which allows you to bid on or buy a huge range of items online, we continue to lead the way.

 

Chart Snapshot

Trending resumed after a pull-back

Trending resumed after a pull-back

TA observations

  • Recent (2013) trading range from high of $1.57 late March, to low of 75 cents early December.
  • Rebound from this low in 2014 to 50% Fibonacci level at $1.15 currently.
  • 3 month uptrend emerged early May following cross-overs of MMAs at about $1.
  • Momentum increasing with divergence of upwardly directed short-term moving averages, and commencing divergence of the flatter medium-term averages.

Key FA metrics

  • P/E ratio is 12.87
  • Dividend yield is 3.7% FF with 51% pay-out ratio
  • Debt/Equity ratio is a conservative 29.3%
  • Return on Equity (ROE)  is 13.6%

Conclusions

It is likely to stay a steady and not a spectacular stock.

Entry could be considered between $1.10 and $1.15 for a long position to exploit the present early trend.

An early target could be the 61.8% Fibonacci level at $1.25, and a long-term target the $1.57 high.

A stop/loss position could be set at $1.

It is a stock likely to be a good conservative choice for medium to long-term investors

 

 



Categories: Chart Analyses, Technical Analysis

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