MM’s thoughts on CCP, CCX & CHC v GMG

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Question asked 04/02/2022

MM’s thoughts on CCP, CCX & CHC v GMG

Dear James and Team, With the recent market dip I am selling some dogs to re invest in better quality shares (just wish I had goy out earlier on the dogs). I am looking for high quality stocks with a history and forecast of steady profitable growth. PE below 35 and ideally 20-25, and a strong balance sheet. Not much to ask hey. When I look at the financials of various stocks on my hit list the following names keep coming up: CCP, CCX and CHC. My questions - Why does the market seem to prefer GMG so much more than CHC when the financial are so similar. Then what are your thoughts on CCP and CCX. Thanks for all the great work, Charles

Answer

Hi Charles,

Over the last few years GMG and CHC have basically walked the same path from a performance perspective, GMG actually reminds me of CBA within the banks i.e. its the largest and hasn’t made mistakes hence it trades at a premium to its peers. It also has a very strong relationship in place with tier 1 global companies like Amazon.

Credit Corp (CCP) $31.56: We like CCP at MM but above $30 the valuation isn’t particularly exciting.

City Chic (CCX) $5.21: ladies fashion retailer CCX has been struggling since October, with its relatively high valuation not helping, at this stage we cannot see a catalyst to turn it around, it would be far more interesting around $4.

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Charter Hall Group (CHC) v Goodman Group (GMG)

LAST UPDATED 04/02/2022 16:38

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