Fund Manager Summary on Close The Loop Ltd (ASX:CLG)
Close The Loop Ltd (ASX:CLG) faces significant operational challenges, having reported an underwhelming performance with a 46% decline in EBITDA to $12.2 million due to an unfavorable product mix and delays in the opening of its Mexicali facility. While the recent completion of the Mexicali site and leadership changes in North America are seen as positive developments, fund managers express caution due to the recent cessation of takeover discussions and the downgrade in earnings expectations. Despite the current difficulties, there is a consensus that appropriate execution and new project wins could potentially return the company to more favorable earnings levels in FY26, making it a company to watch amid prevailing market pressures.
Commentary From The Managers
There are 11 insights from 3 fund managers regarding their investment in Close The Loop Ltd (ASX:CLG) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in Close The Loop Ltd (ASX:CLG)?
Fund managers including Cerutty Macro Fund, Salter Brothers and Wilson Asset Management have invested in Close The Loop Ltd (ASX:CLG).
Why do fund managers invest in Close The Loop Ltd?
Fund managers invest in Close The Loop Ltd due to its sustainable packaging solutions and resource recovery operations, despite recent challenges such as declines in EBITDA and delays in opening the Mexicali facility. While the company has faced short-term issues, including a negative earnings update and a halted takeover bid, management expects improvements in FY26 with new projects and operational enhancements. This potential for a recovery, coupled with its market position in an important sector, contributes to its attractiveness for investment.
What happened to Close The Loop Ltd (ASX:CLG)?
There have been no recent updates from fund managers regarding Close The Loop Ltd although fund managers including Cerutty Macro Fund, Salter Brothers and Wilson Asset Management have previously commented.
What is the short interest in Close The Loop Ltd (ASX:CLG)?
According to ASIC filings, there is negligible or no short interest in Close The Loop Ltd (ASX:CLG).
What does Close The Loop Ltd (ASX:CLG) do?
Close the Loop Ltd (CLG) collects and refurbishes products such as laptops, printers, teleconferencing equipment and gaming devices; and provides sustainable packaging, which allow for recoverability and recyclability. The Company's overall goal is 'Zero Waste to Landfill'.