Quote Originally Posted by Roger View Post
Its not really a company I follow BP but I note even with the 17% decline in SP today that puts it on a PE of 14 based on last years earnings and investors need to consider if this year's earnings will be lower, (it appears they will be slightly).

On the other hand FBU is on a historic PE of 15 and investors need to weigh up the relative outlook's of each company. Based on a quick and dirty comparison I'd say this mornings fall, (so far), appears fully warranted and quite possibly investors pain isn't finished yet by any means.

They call themselves a growth business in the NZX announcement... Hmmm...growth or cyclical ?, you folks be the judge.
I'll be blunter Roger - I think MPG is a very average business that is still overpriced and if you think avbout its across the cycle earnings is worth maybe $1.10-$1.30 a share. Not something I'd invest in because in great times for them they are not performing well enough - clearly a cyclical even if they are acquisitive and on that basis for me a PE of 10-12 is warranted at best. On 12x last years earnings they are c. $1.33 max.