John Rawicki in the free newsletter 'The Bull' has the following to say:
Campbell Brothers (CPB)
This chemical and laboratory services company is trading on a prospective price/earnings ratio above 16 times for full-year 2012. The company appears fully valued at this point. NPAT (net profit after tax) for first half 2011 was within expectations but, in our view, future organic growth may be difficult to achieve. An interim dividend of 65 cents a share will be paid to shareholders on December 21. We are expecting earnings weakness this year, so it doesn?t justify the share price rally. The stock appears overheated.
Having just got into CPB via Ammtec I ain't selling and think Mr Rawicki has got it wrong. Hope I'm right.
CPB Price at posting:
$7.57 Sentiment: LT Buy Disclosure: Held
