Close the Loop - CLG

[bull....]

yep should if everything goes according to companies growth plan become a multi bagger in time for us s/h's

[bull....]

amazing result

FY23 Highlights:
• Revenue of $135.9 million, up 52% on the prior corresponding period (pcp)
• EBITDA of $24.3 million, up 70% on pcp
• NPBT of $14.9 million, up 113% on pcp
• Core business continues to achieve strong organic growth
• Cash balance of $49.5 million
• Strong operational cash flows
• Successfully completed transformational acquisition of ISP / CTC, solidifying company as a globalclosed loop ESG market leader

• FY24 revenue is forecast to be approximately $200m, with EBITDA of at least $43m

amazing growth forecast for yr 24

http://research.iress.com.au/IDS/old...091850000&ppv=

[Rawz]

Looked like a decent result but SP didn’t move? Why’s that?

[bull....]

Looked like a decent result but SP didn’t move? Why’s that?

someones supressing the share price i reckon. been like that for a mth or so probably insto accummulation going on thats how they do it sometimes.

[sb9]

someones supressing the share price i reckon. been like that for a mth or so probably insto accummulation going on thats how they do it sometimes.

Won't be long before it takes off in the short term past 50c at the least.

[Perky]

Good Morning Bull, I see your up and at em reviewing the results .

I believe this Dog is or was in your kennel ?

Interested in your review as they also reported yesterday. Share price dropped 25% on result…Seemed to hit its 52 week low. Wonder if you missed it.

Interesting environmental space they play in but wondering how others view the investment case. They seem to be doing what they said…but share price going backwards.

Is it company specific or sector out of favour…I notice other environmental small cap shares like CXL are also hitting lows

Thanks in advance for your thoughts if your still following as I need to do a bit more homework before considering if now is good time to take small position

[Leemsip]

Hi Perky/Bull. I have a decent holding of CLG (180k shares).

I read the report pre-open on the asx and thought it was great. $26m NPATA (amort doesnt count as its just on intangible stuff from purchases of companies), and $26m FCF once you take into account working capital increase (which will either be a one off or will reverse). This is on a market cap as of now of $120m.

Market hated it and dumped 25%. I think this is a massive opportunity. I am otherwise nervous to get more shares as I already have too many.

IMO a great time for a starter position. If they can pour the cashflow into reducing debt, keep doing what they are doing, restructure existing debt into lower yield, the next report will be a real catalyst. Market is an idiot, or knows something I dont....

Some decent analysis (for once) on hotcopper - https://hotcopper.com.au/threads/ann...lders.8166840/

Not clear buyers commenting though.

[Perky]

Thank you Leemsip, that’s a fair commitment you have there. Yes I have been just following share as a passing interest…I was wondering if there was something company specific to cause that drop. I will do a bit more homework but thanks for posting your thoughts

This made me laugh…

Market is an idiot, or knows something I dont....

I find with my investing skills it’s normally the second bit of that sentence that bites me on the bum.

[Leemsip]

Yeah Im worried the market knows something I dont.... shouldnt drop 25% on no reason.
I hate the management bollocks from this company too... greasy salesmen I reckon.

Tempted to sell some other shares and launch into this with conviction, all or nothing etc etc... but have calmed down now and will just ride it out...

[Perky]

Yeah hard to know. Fairly new business, a bit concentrated revenue in 1 market and 1 major customer, debt and intangibles quite high.

I think this is the challenge with investing in small caps early. Market finds it hard to price until it got some consistent runs on the board. It it loses major customer or competitor comes in can go ugly quickly. However if it can grow and deliver the good margins, pay down debt and diversify customers and markets it could fly.

Risky investment I think…