Yes.
Always seemed to trade on a PE between 13 and 16.
Updated this for you - EBO share price and EPS
The lines generally follow each other through to Dec 2015 and that essentially is your average PE over that time of 15
The share price went up more in % terms than EPS (a higher PE) in 2016 and the share price has been pretty flat since arounf the $18/$19 mark (reflecting it being 'expensive')
The EPS line for 2018 is with EPS growing by 12%. One could say that earnings are starting to catch up with the share price (a forward PE of about 18 now)
You might get your $20 very soon
Best bit of chart is the EPS line keeps going up eh percy
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
The lines generally follow each other through to Dec 2015 and that essentially is your average PE over that time of 15
The share price went up more in % terms than EPS (a higher PE) in 2016 and the share price has been pretty flat since arounf the $18/$19 mark (reflecting it being 'expensive')
The EPS line for 2018 is with EPS growing by 12%. One could say that earnings are starting to catch up with the share price (a forward PE of about 18 now)
You might get your $20 very soon
Best bit of chart is the EPS line keeps going up eh percy
Thank you.
I read it that eps lead the SP until 2016,so looks as though the sp has got ahead of itself.
I think that they're expensive, which is another word for "good company" when it comes to stocks. You don't want to buy a "cheap company" unless you know something that the insiders don't, or like a gamble.
My only problem with the price is that it's priced for growth, and I don't understand to the growth plan clearly for next year 😞
My take is that they have a lot of new aspects of the business to explore and understand, before they can pick out the areas to grow. Of which I imagine there are a few, but I'd rather see plans with more easily calculatable outcomes. That said as a greedy shareholder looking for fast gains; if it were my business is be doing exactly as they're doing, otherwise the growth will be badly managed and inefficient.
I think market sentiment is in line with my sentiment, evidenced by an above expected profit announcement, with no increase to SP (falling PE).
Thank you.
I read it that eps lead the SP until 2016,so looks as though the sp has got ahead of itself.
May have done, but looks about right now. Only dangers are regulatory. The company itself looks fine and if earnings keep growing so will price. I thougt you were a big cheer leader for Ebos, Percy? Did something happen you did not like the look of.
May have done, but looks about right now. Only dangers are regulatory. The company itself looks fine and if earnings keep growing so will price. I thougt you were a big cheer leader for Ebos, Percy? Did something happen you did not like the look of.
Yes.At last year's agm the CEO talked of 7% growth.The pe at the time was about 21,[three times their projected growth rate] so I started selling.The sp is up 2.23% since then.I have retained a very small holding in my wife's, and my own portfolios.
I did not attend this year's agm as I have been busy.First one I have missed for years.
This year's expected 10% growth rate is higher than I would expect,taking into account the slow down and competition in retail pharmacies.
I think Redseal,and BlackHawk will see continued very strong growtn,but they are a very small part of Ebos.
The weakening GXH [nz] share price could see EBO make a move,although at this stage there is no reason to,as they have a large say in GXH's business already.
I'm nearly as big a cheerleader of EBO as percy, having been on the register since the "Early Bros Dental and Medical Supplies" days. Growth has been consistently high throughout this time, aided by astute incremental acquisitions. Now, however, the merger with Symbion puts EBO in a somewhat different league, increases its exposure to regulation and, mainly, Australian govt policy and subjects its growth rate to the "tyranny of large numbers". In the immediate future, the weaker NZD will help profitability growth but over time I think I'll be reducing my overweight position in the company.
I always thought that EBO would eventually buy GXH, but I understand EBO already have a hand in the pie over there. At current valuations, I think it would be a good buy considering the share price of GXH has been on a bit of a dive after their record highs about a year ago.
GXH is a slow burner but I still think that it is a huge long term play. Has exposure to the aging population on a few fronts but on the down side, the pharmacy aspect is still most of source of profits. Whereas EBO is well diversified. Time will tell..
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Originally Posted by percy
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