TYR SCG CCP & RMD

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Question asked 05/04/2024

TYR SCG CCP & RMD

Thank you for the daily updates & insight. Could I ask your opinion on the following companies & current share price . . . CCP - Recovered significantly following last year, but has recently started to retrace. TYR - A mixed response to recent result with a 30% price swing on the day which I found very odd, going from up 7% to down 15%? Has recently tested some lows at $1 following what I thought looked a positive result. SCG - Testing 52 week highs following Covid with what appears good momentum. Positive recent result, notably occupancy, good assets. Time to exit or continue to hold? RMD - Recovered from the lows based upon GLP & slightly lower margins. I notice you mention a possible exit of your position circa $30. Time to exit at $30 or continue to hold? Thanks, Bernie

Answer

Hi Bernie,

CCP; They always seem to report poorly then recover, history says it’s best not to hold ahead of results, but ultimately, it means buying should be done after bad news, not post recovery. The availability of debt ledgers remains an issue and when companies have low inventory (debts to recovery in the case of CCP), earnings growth becomes a challenge. We’re still not fans.

TYR; It’s a competitive space and others, such as Smartpay (SMO) seem to be gaining more traction than TYR.

SCG; It’s trading 1 standard deviation ‘expensive’ so it’s closer to a sell than a buy. We prefer and own other property stocks.

RMD; We’re contemplating existing above $30 as covered in Thursdays morning report.

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Credit Corp Ltd (CCP)

LAST UPDATED 28/03/2024 12:48

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