Hey, sorry I did not make it clear but I meant the shares are trading at around 5 aud. You are right last year UNPAT/Cash Earnings was at 33.6c. I assume this year we will prbably see 38-40c, considering the market recovery while earnings need time to adjust to new level of FUMAA. However UNPAT does follow the market and thus FUMAA. With the acquistions, although a little bit optimistic, I can see a path that we make 50c next year. Market is usually looking forward to next year earnings, not the current year. I assume it is the same in Australia.
All the screen I can see showing 29.4 in EPS and based on that FID is quite expensive, considering the sorry state in this sector. But if I was right and we do have underlying EPS come close to 50c in 19/20, then this is probably too cheap. But be advised no one other than those who have serious interests in this company have any incentives to look beyond headline P/E. This is likely the reason why it is quite cheap. Be prepared it will remain this way for a long time.
Liquidity will soon flood the market if Australia decides to do its own QE/stimulus. It is ironic to see the market remained flat while all other markets are making new highs and will finally break out when the economy is under more stress.
FID Price at posting:
$4.93 Sentiment: Buy Disclosure: Held
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