Originally Posted by
Beagle
The time to think about capital preservation strategies with HGH is not until it gets to a forward PE of about 19 in my opinion, (was 17.5 last time but 10 year Govt stock is about 2% lower than a few years back). If they can do 16 cps in FY22 that suggests its not a case of reduce until it gets up around 16 x 19 = ~ $3 and only then if you can find something else that's more compelling that you haven't already backed the truck too. That 19 PE probably won't happen so I am happy to hold for the foreseeable future and let the recovering economic story grow eps in the years ahead. One can afford to be very patient indeed when getting 8%+ yield !
Good point about Median v Average forward PE's.