Costa: Do not buy yet

Downward revised profit of $57-$66m equals approx EPS of $0.19
Costa is looking like it is another cyclical type company, rather than a stalwart earnings grower. The market will consistently pay up in PE multiple terms for a stalwart earnings grower (think CSL) but not a cyclical performer.

Price still looks over valued to me. At approx $4.00 PE is still higher than 20.

On a ROE valuation:
$0.19/$1.40 book value equals ROE of 13%
Ok but nothing great.
Hard to justify a share price to book value multiple of 2.85 against an ROE of 13%.

I am happy to sit on the sidelines and watch.

Around $3 I will become more interested.