Trials and Tribulations: CLH Trading Halt

Having only started my portfolio a mere three months ago, I had expected a fairly uneventful first few months with most of the excitement in my life attained from second hand thrills in watching what goes on in Mr D’s portfolio as well as the shenanigans on r/wallstreetbets⊙﹏⊙∥. The vast majority of what I personally hold are of course a collection of conservative and uninspiring ETFs, which of course leads to the conclusion that a minority of my holdings are comprised of individual stock picks (≧ω≦)/.

I had initially wanted to write a brief analysis post on my first ever hot pick, Collection House (ASX.CLH), but whilst I was still formulating what aspects to cover, an interesting development occurred in the meantime in the form of a Trading Halt to CLH. Σ(っ °Д °;)っ

As someone who has long been fairly risk adverse, I thought that I would be moderately stressed out by the uncertainties pertaining to the trading halt. With Mr D having mentioned to me a number of times that he believed CLH to be a textbook example of a value trap that he believes will slowly drop in price to eventual oblivion, this was largely founded upon a lack of understanding of the industry that CLH operates in as well as assumptions and speculations on management which appear to be largely unfounded based on my preliminary research (。・`ω´・).  Contrary to my apprehension though, since being notified of this last Friday, my mood has been relatively uneventful despite the unpredictability in what may happen when the Trading Halt either lifts on Tuesday or gets extended. For now, we have no information as to whether or not to expect good or bad news from the halt.

Reflecting on this, I would have to attribute my serenity to the copious amounts of time my ボーイフレンド  and I spent  delving through years of annual reports and financial reports of not only CLH but also its competitors, assessing the potential risks and threats to the business before deciding to put our hard earned money into the company(•̀へ •́ ╮ ). Having been satisfied that it was a reasonable purchase for good value with a solid history of dividend yield and potential for future growth meant that even when a Trading Halt was placed on the shares, I found little to shake my conviction in my decision making.

In short, if I am right in my reasoning of the outcome, there is little to be concerned about come the announcement tomorrow and if I happen to be wrong, it would be a most interesting albeit costly lesson to have learned. Will provide an update as the situation resolves. ٩(๑`^´๑)۶

By 小福