I can't really see anything lowering the shareprice below the current level which is clearly still strongly underpriced at just over 10 times 07 earnings. The market just needs time to develop confidence in CHL reporting successive reporting periods of higher earnings before it will get it's re-rating to the 15-20 times earnings range. From a current P/E of just over 10 we should se this move close to 15 by the end of the FY with the likelihood of strong results to be reported at the AGM, another rise in profits for H1, and the likelihood of the company announcing an interim dividend to be paid in Mar/Apr 07.
I'm looking at the shareprice at least rising into the 50's by June 30.
Regards,
Cheerful.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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