Cash Converters International Ltd

       CCV Details
 
Strong dividend yield: Cash Converters International Ltd (ASX: CCV) shares corrected over 50.49% during this year to date (as of December 01, 2015) on the back of class action claim on behalf of borrowers resident in Queensland who took out personal loans from the Company’s subsidiaries during the period from 30 July 2009 to 30 June 2013. The court recently approved the NSW class action settlement. But, investors need to note that CCV has built a solid online business as well as developed a wide product range to scale up its business in the long term. The group recently appointed CACE Partners to design its strategy to address the rapidly changing market. Emerchants signed a multiyear contract with CCV, wherein the group would leverage Emerchants customized prepaid debit cards to disburse cash advance load funds for in store as well as online customers.
 


Online Loan Growth (Source: Company Reports)
 
Moreover, owing to the stock crash, CCV is trading at a relatively cheaper P/E of about 9x, while delivered outstanding dividend yield of about 8%. Cash Converters International reported a decent revenue increase of 13% on a year over year basis to $374.9 million in the fiscal year of 2015, driven by better personal loan interest of $14.6 million, establishment fees of $7.8 million and corporate store revenue of $18.3 million. Meanwhile, the group also underwent management changes and recently Stuart Grimshaw was appointed as acting Non-Executive chairman as Chairman Reginald Webb is retiring by 2016 financial year.  We reiterate our “BUY” recommendation on the stock at the current price of  $0.51
 
 
CCV Daily Chart (Source: Thomson Reuters)
 

Super Retail Group Ltd

         SUL Dividend Details
 
Ongoing sales improvement despite weak consumer sentiment: Super Retail Group Ltd (ASX: SUL) shares surged over 42.64% during this year to date (as of December 01, 2015) boosted by its solid fiscal year of 2015 performance coupled with the group’s efforts to enhance growth. Even the performance during the 16 weeks to 17 October 2015 depicted 3%, 5% and 5% like for like sales growth for Auto, Leisure and Sports Retailing, respectively. The group delivered a sales rise of 7.1% year on year (yoy) to $2.24 billion in fiscal year of 2015, driven by like for like sales improvement across its Auto and Sports division. SUL auto retailing division witnessed a like for like revenues increase of 2.5% during the first seven weeks of the fiscal year of 2016, while Leisure Retailing like for like revenues rose by 10% during period, driven by BCF and the clearance program in Ray’s outdoors. As the new and refurbished stores are delivering a better performance, SUL is enhancing its network across all segments.
 


Financial Performance over the years (Source: Company Reports)
 
Accordingly, SCA segment is planning to open 15 new stores, and making 65 refurbishments, extensions and relocations. Leisure retailing business is opening 5 new BCF stores and finished 20 BCF refurbishments.  Ray’s shift is also on track of having 5 initial pilot stores (with 3 in hand while 2 new stores are scheduled for September and October). The group targets to begin 8 new stores, close 3 stores as well as refurbish 12 stores across the Rebel and Amart Sports businesses. SUL stock rallied over 9.29% in the last four weeks alone (as of December 01, 2015) while delivered a decent dividend yield of about 3.9%. We reiterate our “BUY” recommendation on SUL at the current price of  $10.65
 
 
SUL Daily Chart (Source: Thomson Reuters)
 

Money3 Corp Ltd

                   MNY Dividend Details
 
Attractive Valuations: Money3 Corp Limited (ASX: MNY) is boosting its capital position by reporting a series of capital raising facilities of $19.3 million before costs. The group is raising over $3.3 million at $0.95 per share with extra capital raised through a share placement to high net worth investors. The group is also undertaking a fully underwritten non-renounceable 1 for 8 rights issue at $0.95 per share to raise the rest of $16 million. Money3 Corporation earlier raised over $29.7 million from Nov 2014 to Feb 2015.  On the other hand, the shares of Money3 crashed over 38.64% during this year to date (as of December 01, 2015) impacted by the challenging environment in its target industry. But the group achieved a record EBITDA rise of 84% yoy to $24.3 million in FY15.
 


Money3 Corporation Financial Performance (Source: Company Reports)
 
Net profit after tax improved by 78.2% yoy to $13.9 million during the period. The group’s Cash Train acquisition contribution in Dec 2014 drove its profits during the year. Money3 Corporation reiterated its net profit forecasts of $19 million for the full year of FY16, which is more than 30% increase as compared to FY15. Moreover, the heavy correction in the stock placed it at cheaper valuations, with the stock trading at a lower P/E of about 9x with an annual dividend yield of about 5.5%. Based on the foregoing, we give a “BUY” recommendation on the stock at the current price of  $0.945
 
 
MNY Daily Chart (Source: Thomson Reuters)

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