There are some companies that I have never sought to follow in any meaningful detail and CIM is one of them, so my observations should be taken in that context.
Prima facie, a company valued in the market at $9.5bn, and making $800m in Net Profit (before "non-recurring" items) does not sound at all demanding, being a P/E multiple of ~12x.
But my concern is that the "E" in that P/E is quite rubbery and contains an elevated degree of forecast risk, given the nature of the business model.
But like I say, it "looks" cheap enough (especially in the context of current valuation levels of the broader market, combined with the much-vaunted infrastructure boom that we keep hearing about).
CIM Price at posting:
$28.88 Sentiment: Hold Disclosure: Not Held
