CAB - Cabcharge. What gives?

[ruethewhirl]

Profit way up (altho slightly under analyst's estimates), share price way down.

[ruethewhirl]

10% is a big drop considering earnings were
up significantly.

The tone of the annoucement was very upbeat,
the chairman making the point that CAB is immune
to "Credit Crunch" concerns and that the business
is expanding and looking better than ever.

[wns]

I read a brief update on these guys today and it made me giggle... it mentioned something called a...

Totally Integrated Transport System

The first thing I noticed was the acronym. :) :)

On a serious note, this is a good company. Eight years straight of increased profits.
I've always found them too expensive to buy though, even today after the 10% drop.

[ratkin]

That the trouble with these stocks , they priced for perfection , any slight slip and they hammered.

[h2so4]

10 years positive cashflow.

Is this all that has been posted on this wonderful business?

Now being sold at a wonderful discount price I might add.

No charts please.

[Phaedrus]

The market has a very different view......

http://h1.ripway.com/Phaedrus/CAB910.gif

[h2so4]

Of course it does, thats why I picked it up so cheap. The market is a tool!!!, not a guide.

[Huang Chung]

Of course it does, thats why I picked it up so cheap. The market is a tool!!!, not a guide.

Oh dear H2so4, why oh why do I get this funny feeling that you might get star billing in one of Phaedrus' famous sinking charts that's plastered with quotable quotes from the Sharetrader faithful.....:confused:

[The Big Ease]

it has a very predictable core business with strong competitive dynamics and pricing power.

it was overpriced for a long time and it now dominates the domestic market. in search for growth, the company has now branched out into all sorts of areas from being the underbidder on a tunnel toll road (iirc it was the sydney cross city), buying bus companies etc and this has spooked the market.

i dont know what theyre performance has been like of late, but it just doesnt have the sort of growth i look for.

[soulman]

Indeed, that's a classic.

CAB is anything but cheap but calling the market a tool? Oh well, another deadly sins you still have yet to learn. Wait until CAB get to about $5.50 and I might call it cheap. Until then, just because it was $12 a year ago doesn't necessarily make $7 cheap.

[h2so4]

Oh dear H2so4, why oh why do I get this funny feeling that you might get star billing in one of Phaedrus' famous sinking charts that's plastered with quotable quotes from the Sharetrader faithful.....:confused:

He wont find many quotes on CAB just me and.... well just me actually.:)

[h2so4]

it has a very predictable core business with strong competitive dynamics and pricing power. Great!!!

it was overpriced for a long time and it now dominates the domestic market. in search for growth, the company has now branched out into all sorts of areas from being the underbidder on a tunnel toll road (iirc it was the sydney cross city), buying bus companies etc and this has spooked the market. I didnt know that. Thank you for bringing that to my attention

i dont know what theyre performance has been like of late, but it just doesnt have the sort of growth i look for.

What sort of growth do you look for? How do you calculate your growth? TA FA BA?

[h2so4]

Indeed, that's a classic.

CAB is anything but cheap but calling the market a tool? You can take that anyway you like. Oh well, another deadly sins you still have yet to learn. Wait until CAB get to about $5.50 and I might call it cheap. Until then, just because it was $12 a year ago doesn't necessarily make $7 cheap. Odd. I dont think I said "CAB is cheap because it had a market price of $12 a year ago". Soulman wait until CAB is $5.50 then you can come back and hit me with your shanagarisms.

[h2so4]

Sorry guys I doubled down, averaged down, top up...whatever?? Not intentional, but I can live with a few more discounted shares. :)

[The Big Ease]

What sort of growth do you look for? How do you calculate your growth? TA FA BA?

significant earnings growth 40% plus with plenty of room for PE rerating.
I havent had one of those for a while. FUN a few years back was a great one, then took some time out of investing until late last year. nice timing eh?
:rolleyes:

i had some spare cash and didnt want it sitting in the bank doing nothing arrggghh

[h2so4]

significant earnings growth 40% plus with plenty of room for PE rerating.
I havent had one of those for a while. FUN a few years back was a great one, then took some time out of investing until late last year. nice timing eh?
:rolleyes:

i had some spare cash and didnt want it sitting in the bank doing nothing arrggghh

Yeah excellent!!

Can you tell me why you bought FUN, apart from the fact it had a low P/E? Significant earnings growth 40% plus seems a bit ambiguous to me, being a newbie and all, how did you calculate it,or, was it based on rationale?

[The Big Ease]

Yeah excellent!!

Can you tell me why you bought FUN, apart from the fact it had a low P/E? Significant earnings growth 40% plus seems a bit ambiguous to me, being a newbie and all, how did you calculate it,or, was it based on rationale?

it was a long time ago, so i dont really remember why.
but needless to say you live and learn along the way. different strokes and all that.

i dont want to be dismissive, but perhaps you should grab yourself a copy of a few investment books and see what works for you along the way. basically, do you research and come to a view on the likely prospects....at the end of the day, managers within companies often dont know how the year is going to turn out, so outsiders like us are at even more of a disadvantage.

you learn by being inthe game, making mistakes along the way and keep educating yourself. im still learning.

[h2so4]

it was a long time ago, so i dont really remember why.
but needless to say you live and learn along the way. different strokes and all that.

i dont want to be dismissive, but perhaps you should grab yourself a copy of a few investment books and see what works for you along the way. basically, do you research and come to a view on the likely prospects....at the end of the day, managers within companies often dont know how the year is going to turn out, so outsiders like us are at even more of a disadvantage.

you learn by being inthe game, making mistakes along the way and keep educating yourself. im still learning.

INVESTMENT BOOKS ARE BORING...,but, maybe you could suggest one or two for me?

[winner69]

Pretty good performance in finishing up for the week .... maybe up up from here

[winner69]

I thought Cabcharge had recently been discussed somewhere but obviously not on this thread..

Things were looking bad enough for CAB anyway going from $14 to $6 odd over the last yaer or so but heck when the ACCC said they were involved another 20% down

No wonder the ACCC is investigating this monolopy ... the 10% surcharge brings in more than $120m a year and processing costs etc are getting cheaper as technology gets more efficient.

Fair chunk of their profit ... no wonder punters nervous

Go get them ACCC from one who has forked out heaps of these 10% surcharges on Aussie taxis

Isn't this one of Fishers better investments

[The Big Ease]

I know some people working in the payments industry who have long said this day would be coming for this lot.

[winner69]

Quote from SMH shows the degree of ripping people off -

The statement of claim says that last year the 10 per cent fee produced revenue for Cabcharge of $113 million, a 51 per cent increase on the $75 million recorded in 2005.

Cabcharge's "transaction processing expense" last year was just $2 million, down from the already skinny $5 million incurred in 2005.


The proverbial gold mine eh .... no wonder the shares went to $14 odd in a few years but one would have to think it could be atruggle from here on

[winner69]

I don't think Fisher Funds have this ..... sorry Carmel

[h2so4]

The proverbial gold mine eh .... no wonder the shares went to $14 odd in a few years but one would have to think it could be atruggle from here on

Half that would do me.:)

[h2so4]

Up 3.5% ahead of it's profit announcement. I'd expect to see a net profit around $39m. :)

[h2so4]

Cab takes a hammering. Not surprised............surrounded by fear and falling cashflow.

Cab is hated by the market.

Not many new postings on Sharetrader these days. Just as well we are not listed on the ASX/NZX.

[drillfix]

H2, I guess not the best time for this stock along with markets doing back flips like today.

Here is a chart:

http://i49.tinypic.com/2py9ea8.png

Looks like its falling towards intermediate support, and failing that, the next thick green level at $5.0x ish.

The indicators are also saying RSI heading south, Stochastics breaking downwards, MACD probably going to cross over too with another day like today which does not really add up to a positive choice for the time being, imo.

Who knows though, many stocks got slammed after midday so I at least thought I would post to share a view being for the good or bad.

[h2so4]

H2, I guess not the best time for this stock along with markets doing back flips like today.

Here is a chart:

http://i49.tinypic.com/2py9ea8.png

Looks like its falling towards intermediate support, and failing that, the next thick green level at $5.0x ish.

The indicators are also saying RSI heading south, Stochastics breaking downwards, MACD probably going to cross over too with another day like today which does not really add up to a positive choice for the time being, imo.

Who knows though, many stocks got slammed after midday so I at least thought I would post to share a view being for the good or bad.

Than you Drilli. It might be a while before the markets unlock CABs value?

[macduffy]

Than you Drilli. It might be a while before the markets unlock CABs value?

Yes, CAB will need to sort out its problems with the ACCC first.

Then there's the matter of possible new technology putting a spanner in CAB's works.

Disc: Not holding.

[h2so4]

Yes, CAB will need to sort out its problems with the ACCC first.

Then there's the matter of possible new technology putting a spanner in CAB's works.

Disc: Not holding.

Yeah once these transporter rooms take off we can forget about CAB shares. :):):):)

http://www.youtube.com/watch?v=3YY2RY9mLkk

Beam me up Scottie :D

[macduffy]

Nice one, h2, but I had gadgets like SQUARE more in mind there!

The ACCC anti-competitive action is more of a threat though, I would think.

[h2so4]

Nice one, h2, but I had gadgets like SQUARE more in mind there!

The ACCC anti-competitive action is more of a threat though, I would think.

The court case doesn't affect the valuation. Thats just noise causing fear in the market.

[h2so4]

I'm out. Hopefully buy again XD at cheaper price. Who knows?

ps Still think CAB is better than SEK :)

[h2so4]

I'm out. Hopefully buy again XD at cheaper price. Who knows?



Back in today, just a few mind.:)

Yeah I know, boring stuff aye?:sleep:

[h2so4]

I am pretty happy right now.:)

[winner69]

I am pretty happy right now.:)

Do think this is just the market just being relieved that the ACCC case is over ..... or is this the start of a real resurgence in the CAB performance .... even with this increase chart still looks pretty unhealthy

[h2so4]

Do think this is just the market just being relieved that the ACCC case is over ..... or is this the start of a real resurgence in the CAB performance .... even with this increase chart still looks pretty unhealthy

Yes your right.:)

[winner69]

Anybody still in

Monopolistic practices being broken down by disruptive technology and CAB reluctance to keep abreast of how the new world rider works

When they do try to catch up their ihail app is deemed to be uncompetitive by ACCC