Don't discount margin call selling!
Looks like Forbar type style selling from their leveraged finance book!
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Here are your PE"s (at SP = $1.33):
Forward PE (based on average of next 3 years forecasted earnings) is 9.8;
forward earnings CAGR is 7.4
backward PE (based on the last 6 years earnings) is 14;
backwards earnings CAGR is 13.
So - earnings growth expected to drop, but 7% pa is still no reason to hide under a rock, particularly in combination with a forward PE of under 10.
Couldn't resist and bought back in ... lets hope KW's famous words won't haunt me.
Some dog who picked the top at $2.14 reckons he might have nailed very close to the bottom at $1.33. Couldn't help myself.
Sharing my latest sector comparative research which is based on yesterday's prices so forward PE is even more compelling for HGH at $1.33 today. Keep in mind Aussie banks face multi billion fines for their reckless behaviour.
Sector comparison - all figures consensus average analyst view off market screener 4 traders site.
Forward PE's for FY19, FY20 FY21
ANZ 11.3, 10.8, 10.8
NAB 10.5, 10.2, 10.3
WBC 11.3, 11.4, 11.7
BEN 12.1, 12.1, 12.4
CBA 13.2,13.8,14.2
BOQ 11.9, 11.9, 12.3
HGH 11.6, 9.9, 9.3
Avg 11.6, 11.4, 11.6 (avg = sector average)
Keep in mind not only above expensive fines only for Aussie banks but HGH's better capitalisation rate and no issues with RBNZ capital requirements, its apparent better forecast eps growth and its the only company with which we can get full imputation credits.
American financials as a sector up 13% YTD on the US markets according to CNBC.
HGH has gone backwards ?
Opportunity appears to be knocking pretty loudly !...so loudly it drowned KW's advice out of my head.
My rating BBB (Beagle busy buying)