Hermie has a torch

Half yearly results are out, admirably summarised by Accaeric. I will always defer to him by using the capital for his name, his post very informative and useful.

Now my children, to business.

I have silently put up with the bellyaching on HC for the past few weeks not joining in this tirade. Ever since my much maligned post "Hermie extrapolates" the vitriol* has been flying around. That post assumed a modest divvie and extrapolated future SP from there using certain arcane calculations. I quite liked the idea of extrapolating the SP based on div yield because dividends bring with them confidence of current and future earnings both of which seem to be lacking at present. Those timid titans who cast doubt on the auditors must be hiding in their burrows. Grant Thornton are very highly regarded professionals and they have given SBB a clean bill of health. Accept that you grubby little underground rodents!

Returning to the nub of things .......

Confidence in SBB my princelings is what we must turn our considerable interlects to. The current P/E of 3.2 is quite abysmyl, we all understand that, the question my little woodpeckers is WHY? Let us switch on our torches of understanding and contribute to the debate. I don't have the answers I just want to clarify the key question.

* vitriol is concentrated sulphuric acid, dangerous indeed.

Your friend in adversity

Hermie99