forecast for fy13 year-end, page-8

Hard to forecast anything these days but i reckon 18c EPS for LCM FY14. For ultra-safe companies i'm willing to risk 12.5 PE. For small caps with revenue dependent on contract wins in an era of tightening margins... i feel LCM is a buy at 7x and a sell above 9x. Many analysts use the low interest rate environment to justify investing in shares. But it's low-interest coz the environment is so uncertain combined with too many companies fighting for same piece of turf and willing to sacrifice margins to get the work. So i remain cautious about buying as if world stability has somehow returned. The massive rise in many MS sector stks is an opportunity to exit and wait on sidelines. There will always be more opportunities imo. It's the nature of the mkt to throw-up stuff that provide wild swings. L&G sector def gives comfort to LCM.