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7,302 Posts.
1072
17/10/17
11:01
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Some back of the envelope numbers:
1st Half year 2018: $11 million profit = approx EPS of 6.9c against half year 2017 EPS of 9.8c
2nd Half year 2018: $6million profit ($17-$11 million= approx EPS of 3.8c against second half 2017 EPS of 6.4c
Shares on hand: 158 million
We are seeing a rapid and continued decrease in earnings with no light yet at the end of the tunnel.
If I extrapolate 3.8c x 2 = 7.6c as maybe (and only maybe) bottom of the cycle earnings, then on a PE of say 8 i get a share price of only 60c.
I am staying on the sidelines.
Too dangerous still to dip in
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