Originally Posted by
Beagle
Nobody will care including the OIO.
If only it was an easy as picking the right PE.
I start with the board, do they have a credible track record of governance ? (No otherwise they would have been reigning in the CEO's ludicrously optimistic forecasts that have regularly been wildly wrong
Does management have a credible track record with their performance and forecasting ability ? Repeated Epic Fails.
Have they been achieving previous KPI's as outlined in pervious years annual reports ? Repeated Epic fails
Is the company cash flow positive and is cash flow growing ? Epic Fail year after year.
Is the gearing acceptable ? Its getting a lot worse as they pay dividends out of negative cash flow.
What are the market dynamics and is the regulatory regime likely to change ? All the hype of sales into China hasn't come to much. The regulatory environment regarding manuka honey specification is uncertain and fluid.
Fundamentally is the forecast PE attractive given the sector the company trades in and its growth rate ? No its shockingly overpriced and could very easily halve in the foreseeable future.
Technically, is the stock in an confirmed uptrend ? No its in a confirmed downtrend despite takeover possibility which must be a massive red flag for anyone who believes anything about TA.
This company fails All the filters I use in stock selection...not just two or three, All of them !
Might as well back the truck up and learn yourself a serious lesson the hard way I reckon as you quite obviously don't want to listen to anyone on here.
I can see this under $4 if the party doing due diligence walks away.