I have just read that medibank IPO book price will rise as much as 30% for institutional investors to about $2.3 per share. => about P/E=22 for a mature industry.
On the other hand, CMP is trading at about current P/E=18 with forward P/E of less than 10 with massive growth and relatively small risks, as it has been in business for over 10 years and health demand will grow, as long as a medical supplier keeps innovating and aiming to become medical leader in its specialized markets.
Still with the current price, I have no fear but optimism. It is certainly a time to differentiate between the wise investors who believes in fundamental financial figures and choose to hold the undervalued, predictable stocks, and the average investors who buy/sell based on market sentiment.
Against all theories, the market is ignoring the positive cash flow and profit upgrading sign/free trade/stronger usd, and actually starts selling the stock.
I can't judge if I am right, but i will let time tell the story of CMP.
Good luck.
I am planning to hold until at least its market cap reaches $100 millions.
CMP Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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