Cleardebt Share Discussion Threads

[chrisis33] 20/6/2011 20:52

Looks quite interesting at first glance - looks to have broken its downtrend, and the update today sounds positive.

[yorgi] 20/6/2011 15:14

Yes I had noticed Moreforus but sadly I had no funds free otherwise I would have bought a few last week. I could see what stonking buy it appeared to be and still is.....just a tad less than last week.

[moreforus] 20/6/2011 13:54

fair value more than 4.5p now...exceeded expectation....

[pugg1ey] 20/6/2011 13:53

good stuff

[moreforus] 20/6/2011 13:49

- ClearDebt anticipates that its year end figures will be ahead of market expectations

-- Number of IVAs approved in the current financial year is expected to exceed the 2009/10 figures by 100%

[topinfo] 20/6/2011 13:36

M4 Excellent news just out mate!

DJ Cleardebt Group PLC Trading Update and Related Party Transaction

TIDMCLEA

RNS Number : 7460I

Cleardebt Group PLC

20 June 2011

ClearDebt Group Plc ("ClearDebt" or "the Company")

ClearDebt is pleased to announce a trading update and that it has today acquired certain assets of Invocas Group plc.

-- ClearDebt anticipates that its year end figures will be ahead of market expectations

-- Number of IVAs approved in the current financial year is expected to exceed the 2009/10 figures by 100%

-- ClearDebt has acquired a book of approximately 1,000 IVAs from Invocas Group plc for an undisclosed sum

The Board of ClearDebt sees the 2010/11 financial year as one of good solid progress. The acquisition of the book of IVAs from Invocas gives the Company the opportunity to expand its operations in the growing IVA sector. The acquisition is being funded, in part, by a Loan (the "Loan") from the Company's CEO, David Mond, of GBP625,000 on the same terms under which Mr Mond has previously made loans to the Company. The Loan bears interest at a rate of 10.5% per annum and is repayable on demand. As the Loan is being made to the Company by a director, it is classified as a related party transaction under the AIM Rules for Companies. As such, the independent directors are required to give an opinion, after consultation with the Company's Nominated Adviser, that the terms of the Loan are fair and reasonable so far as all shareholders are concerned. Having consulted with Seymour Pierce Limited, the independent directors of the Company are satisfied that the terms of the Loan being made to the Company by David Mond are fair and reasonable so far as all shareholders are concerned.

ClearDebt welcomes last Tuesday's Office of Fair Trading's publication on revised guidance for the debt management industry and applauds the attempts to impose stricter rules within the debt resolution industry which ClearDebt has been championing for years. The consultation document sets out standards that the debt management industry must adhere to and to which ClearDebt embraced several years ago.

The Board intends to pursue a number of further opportunities to acquire further back books or businesses within the industry.

Enquiries:

ClearDebt Group plc David Mond, Chief Executive Officer

Tel No: 0161 968 6805

Seymour Pierce Limited John Cowie/Guy Peters (Corporate

(Broker and Nominated Adviser) Finance)

David Banks/Katie Ratner (Corporate

Broking)

Tel No: 020 7107 8000

This information is provided

[moreforus] 17/6/2011 11:24

and another

now we have a silly spread...

[pugg1ey] 17/6/2011 10:02

in know mf can get 'excited' about many stocks but I think CLEA is a good investment, especially under 2p. hopefully backed up by good results/trading update

[moister] 17/6/2011 09:53

Ramping again.....

[moreforus] 17/6/2011 06:42

sorry dkpetti

you are right - i was dressing it up..

it's 3.64...



Other factors that we think investors should note are that:
 ClearDebt is increasing volume and, as per the preceding table, gaining
market share (it had more IVAs passed in the first seven months of 2010/11
than in any previous full year)
 We do not yet know how many ClearDebt IVAs were approved in the first
quarter of 2011, but the January number (all January numbers are seasonally
depressed as fewer are submitted over Christmas) was 77, a 285% increase
on January 2010...
 ClearDebt already had a lower rating on a PFER basis than Fairpoint prior to
the announcement and its share price had already fallen by one-third from its
2011 peak in the last three months
 Also, the decline in the number of IVAs approved and the lower average fee
has a less geared impact on ClearDebt because it has low costs (both fixed
and variable): the latest published data shows ClearDebt‟s EBITDA on IVAs as
an attractive 39.6%. This is despite taking a larger proportion of the smaller
IVAs that reduce fees and margins, although their conservative accounting
policies reduce the difference reported at the pre-tax level.
Earlier this month ClearDebt was rated at 6.7x its broker‟s forecast of 2011 eps
but now it is only 4x. Despite its impending year end, it has seen no need to issue
a warning in respect of those market expectations.
Our opinion is that a slowdown in the market will merely slow ClearDebt‟s growth
rather than cause an actual fall in its profits; also ClearDebt‟s reported profits will
rise as the amortisation charge on the assets acquired from the administrator of
"Relax" runs out. Even if earnings per share were to be 10% below the house
broker‟s forecast, the current share price would be trading on less than five times
eps for 2010-11.
Conclusion
Fairpoint has warned of a temporary one-off drop in earnings per share
of, say, 3p (probably less) and its share price has declined by 31p, which
I can safely say is excessive; ClearDebt has issued no warning, but its
share price fell by one-eighth, which I think is irrational.
We think that ClearDebt's current share price should be at least 3.6p, and
preferably 4.5p, which is double the current price

[yorgi] 16/6/2011 21:11

Broker forecast for 2011 0.5p EPS pretty much makes p/e 3.....3.64 maybe :-)

[dkpetti] 16/6/2011 20:54

can you explain how you get a p/e of 3 from a price of 1.82p and an EPS of 0.11

[moreforus] 16/6/2011 13:09

we'll see later pugg

i'm not selling a stock trading on a p/e of 3

[pugg1ey] 16/6/2011 13:08

still falling. another 500K dump?

[moreforus] 16/6/2011 12:46

pugg - its a defensive spread...function of the aim madness..why fall back 1 tick on a 30k sell instead of 4!!!

[pugg1ey] 16/6/2011 12:37

nice fall on £900 worth of sells.

Is someone selling in the background?

[moreforus] 15/6/2011 11:18

Vimtoman
Posts: 57
Observation
Opinion: No Opinion
Price: 2.03
Bit moreToday 11:06

[moreforus] 14/6/2011 15:39

on the bbc no less

[pugg1ey] 08/6/2011 11:07

nice quick £1000 on an illiquid stock

[moreforus] 08/6/2011 10:33

pugg

500k buy on plus

mms made a 0.20p turn from yesterdays seller

[moreforus] 08/6/2011 06:35

Now i would say it's a function of aim and distressed and disinterested investors when a company can trade at less than 50% of current fair value...

We think that ClearDebt's current share price should be at least 3.6p, and
preferably 4.5p, which is double the current price.

[moreforus] 08/6/2011 06:32

Market has as it always does completely over reacted to FRP it pays a 4p divi and will still make substantive profits.

From the equity denvelopment note:-

Fairpoint has warned of a temporary one-off drop in earnings per share
of, say, 3p (probably less) and its share price has declined by 31p, which
I can safely say is excessive; ClearDebt has issued no warning, but its
share price fell by one-eighth, which I think is irrational.
We think that ClearDebt's current share price should be at least 3.6p, and
preferably 4.5p, which is double the current price.