On reflection I think this is a case of -
Solid report and no matter what happens to the share price today be patient - the rewards will continue for some years
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On reflection I think this is a case of -
Solid report and no matter what happens to the share price today be patient - the rewards will continue for some years
interesting market reaction....
Down 23 already, I guess the market really is like Dr. Jekyll and Mr. Hyde haha
Market not liking it this morning.....down 6% already. Hope it closes a little better. Still a long term holder so not too much of a worry "yet"
This time last year it's market cap was 276m and yesterday it was 489m and the half yearly result only shows a marginal increase in profit. Figures.
So a PE (if you fancy that measure) of about 16
When that aussie Costa floated last year it had a PE of about 15/16 and noodles/me suggested that scales could be 'rerated' Well it has been - but is it performing?
I see that Costa had a stunning result today and currently it's PE is 19
Will look at EV / EBITDA multiples later.
At least dividend yield will support the share price for a while
You will probably be buying mine, good lot up for sale, sold some yesterday at $3.55, have been partially skunked as with A2.(Note to self, upon rapid share price rise, never think it's going to go up on results day) Using my proceeds to buy some up and coming divvy payers. Of course the silver lining for me is that Air hasn't had a rapid rise, so that should happen after the result tomorrow.
From 18/5/16 Mid point of their forecast for this year, (they have a track record of beating forecasts) gives $32.1m or 23 cps. Top end of forecast, more likely in my opinion, $34.6m gives 24.7 cps.
Now the question is given that last years underlying profit was $35.7m so I expect we're basically looking at a flat year with no profit growth what's the right PE in an ultra low interest rate environment ?
Industry headwinds in the cool store operations, I presume this relates to Dairy ?
Volumes up pretty nicely but gross margin down quite a lot so in $Kiwi terms we're not seeing the price increases that were eluded too in earlier months trade stat's...trade stat's implied price increases ?????
Pet food good growth but some concerns regarding possible lack of input ingredients so perhaps some impact in the second half.
Currency obviously a bigger issue than the market and I was expecting.
Got ahead of itself at $3.50.
My preliminary thinking is fair value is based on top end of forecast guidance range 24.7 cps and a PE of 13-14 seems right to me gives target price in 6 months time of $3.21- $3.45