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Australian Stock Market
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Australia Sucks Offline
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Post: #68
RE: Australian Stock Market
Bubs (ASX code: BUB) share price has gotten smashed (down from around $0.75 when I last posted about it to $0.47 now) as China related stocks seem to be on the nose at the moment (coupled with concerns about the regulatory environment for consumer products companies exporting to China). With China sentiment not looking like turning in the near term it looks like the stock could remain in the doldrums for a while longer. However the company is still showing strong revenue momentum and the long-term story appears to be unchanged. Its still a speculative stock to potentially buy (for a very small position no more than a few thousand dollars) on any further dips.

Credit Corp Group (ASX Code: CCP) recently suffered substantial share price declines in part due to the overall stock market going down and in part due to a recent proposed senate economics committee investigation/commission into payday lenders, debt mediators and certain other types of financial businesses. Even though technically according to the terms of reference of the proposed senate economics committee on the topic Credit Corp will not be directly involved/affected politicians do have a tendency of wandering off topic (and are not strictly bound by the terms of reference) and the consumer lending business they operate is not too far away from pay-day lending. Therefore in theory they could potentially be hit with tougher regulations. My understanding however is that based on the past regulatory reforms (they were not affected and got the bonus of taking market share) to consumer credit laws, etc as well as the company's current product offering that they have the most ethical and sustainable loan products of any major Australian company operating in the credit impaired consumer segment. Therefore I think any potential regulatory changes will not hit them very hard if at all but that some of their shadier competitors will be hit much harder giving them an opportunity to gain market share in the longer-term if the regulations are tightened.

The Annual general meeting of the company is on 1st November 2018. I think the company will show strong performance and give a positive outlook statement and has a good chance of upgrading its earnings guidance for FY2019. the stock is undervalued now and I think it will rally after the AGM presentation is released. On Friday the share price closed at $18.45. I believe its a strong buy at current levels and I am adding to my position. Its the type of stock which could be suitable as a core/large position in a long-term stock portfolio. I think it will beat guidance and earn at least $1.55 per share in FY2019 and pay at least $0.75 per share in dividends. That is therefore a forward price to earnings ratio of less than 12 times and a 4%+ dividend yield for a high quality company (ROE consistently in the 20-25% range and consistent double digit EPS growth, strong balance sheet, good management, good long-term growth prospects, etc). I reiterate my thesis that the mature Australian business will be a more or less steady performer with no long-term growth but the consumer lending and debt collection businesses will show good growth.


Due to emerging markets tanking as well as the China-Trump "trade war" Asian stocks (especially China related stocks). Have taken a beating. Therefore its a good time to but into the listed investment company Platinum Asia Investments (ASX code:PAI). Its managed by Platinum Asset management (ASX Code: PTM) run by the legendary Neil Kerr a billionaire fund manager/stock picker with a good track record. PAI floated at $1.00 per share in 2015 and after rising to over $1.32 it has now fallen back to $1.015. Long-term investors should look to accumulate some shares at $1.00 per share or below.

In the next few days there are some other stocks I will talk about. Basically I think its time to be bullish now and accumulate good stocks while they are on sale. I think despite a few big disappointments that the current U.S. earnings season will meet or even beat expectations overall and U.S. stocks will overall rally in the coming weeks (with other markets likely following wall street higher). Even if stocks do not rally I definitely think a crash is not on the cards.

There are few more Australian stocks that I will post about in the coming days so keep an eye on this thread.
(This post was last modified: 10-28-2018 07:52 AM by Australia Sucks.)
10-28-2018 07:50 AM
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Messages In This Thread
Australian Stock Market - Australia Sucks - 09-13-2016, 07:58 PM
RE: Australian Stock Market - Julio - 09-14-2016, 02:30 AM
RE: Australian Stock Market - TheFinalEpic - 09-14-2016, 06:13 PM
RE: Australian Stock Market - Kangaroo - 09-18-2016, 07:08 AM
RE: Australian Stock Market - BB1 - 06-06-2017, 05:23 PM
RE: Australian Stock Market - BB1 - 08-23-2017, 02:29 AM
RE: Australian Stock Market - BB1 - 12-22-2017, 12:38 PM
RE: Australian Stock Market - BB1 - 02-09-2019, 05:47 PM
RE: Australian Stock Market - BB1 - 07-15-2017, 12:43 AM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:47 PM
RE: Australian Stock Market - Justinian - 07-28-2017, 12:55 AM
RE: Australian Stock Market - Atticus - 01-01-2018, 07:07 AM
RE: Australian Stock Market - PK1098 - 01-01-2018, 05:11 AM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:21 PM
RE: Australian Stock Market - Cane Toad - 01-01-2018, 10:29 PM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:38 PM
RE: Australian Stock Market - Cane Toad - 01-01-2018, 11:00 PM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 12:02 AM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 05:48 PM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 06:13 PM
RE: Australian Stock Market - Tail Gunner - 01-03-2018, 03:39 PM
RE: Australian Stock Market - Cane Toad - 01-03-2018, 07:38 PM
RE: Australian Stock Market - Tail Gunner - 01-03-2018, 07:50 PM
RE: Australian Stock Market - Roardog - 01-10-2018, 09:40 AM
RE: Australian Stock Market - Tail Gunner - 01-10-2018, 11:07 AM
RE: Australian Stock Market - Roardog - 01-10-2018, 09:04 PM
RE: Australian Stock Market - Tail Gunner - 01-10-2018, 11:12 PM
RE: Australian Stock Market - Cane Toad - 01-12-2018, 06:26 AM
RE: Australian Stock Market - Tail Gunner - 01-12-2018, 11:25 AM
RE: Australian Stock Market - Tail Gunner - 01-12-2018, 11:38 AM
RE: Australian Stock Market - PK1098 - 01-01-2018, 03:22 PM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 12:36 AM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 01:37 AM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 02:45 AM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 12:45 PM
RE: Australian Stock Market - Mig Picante - 01-03-2018, 11:33 PM
RE: Australian Stock Market - Australia Sucks - 10-28-2018 07:50 AM
RE: Australian Stock Market - Bucephalus - 12-10-2018, 06:47 AM
RE: Australian Stock Market - Blue Streak - 11-19-2018, 07:12 AM
RE: Australian Stock Market - Mig Picante - 12-10-2018, 08:19 AM
RE: Australian Stock Market - Mig Picante - 12-10-2018, 06:35 PM
RE: Australian Stock Market - Blue Streak - 01-15-2019, 06:15 AM
RE: Australian Stock Market - Mig Picante - 02-11-2019, 08:47 AM
RE: Australian Stock Market - Mig Picante - 02-19-2019, 08:54 AM
RE: Australian Stock Market - BigTedSven - 02-21-2019, 02:33 AM
RE: Australian Stock Market - Mig Picante - 04-14-2019, 06:30 AM
RE: Australian Stock Market - TDevil - 04-14-2019, 07:29 AM
RE: Australian Stock Market - Tail Gunner - 04-19-2019, 12:24 AM
RE: Australian Stock Market - Mig Picante - 04-20-2019, 03:11 AM
RE: Australian Stock Market - Mig Picante - 04-21-2019, 04:06 AM
RE: Australian Stock Market - BigTedSven - 05-21-2019, 09:47 PM
RE: Australian Stock Market - BigTedSven - 05-21-2019, 09:48 PM
RE: Australian Stock Market - Tail Gunner - 05-21-2019, 10:00 PM
RE: Australian Stock Market - Bogart - 05-22-2019, 10:54 PM
RE: Australian Stock Market - Mig Picante - 05-24-2019, 07:16 AM
RE: Australian Stock Market - BB1 - 05-25-2019, 02:31 AM
RE: Australian Stock Market - outback - 05-25-2019, 02:33 AM
RE: Australian Stock Market - Mig Picante - 05-25-2019, 03:51 AM
RE: Australian Stock Market - BB1 - 05-27-2019, 06:38 AM
RE: Australian Stock Market - BB1 - 06-10-2019, 06:54 AM
RE: Australian Stock Market - UnW - 05-27-2019, 07:16 AM
RE: Australian Stock Market - Mig Picante - 06-04-2019, 08:36 AM
RE: Australian Stock Market - BalanceLife - 09-08-2019, 06:18 AM
RE: Australian Stock Market - Mig Picante - 09-24-2019, 07:05 AM

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