Roger Montgomery did a recent webinar with Alan Kohler for Eureka subscribers. He used his software to analyse just one stk and chose WOW. Monty applies a 'discount rate (required return) of 15% which i consisder extraordinarily high for a ASX20 stk. Using his methodology (and assuming WOW maintains 70% div payout ratio) he valued WOW for FY11 at $23.36... an increase of $3.02 over his FY10 value. If WOW cut div he values firm at $32. A huge difference. I am buying WOW for combination of growthANDdivs. Ceteris paribus... reduce one and the other increases. I'm happy to apply a 'discount rate' of 9% which would increase the SP value considerably.
WOW Price at posting:
$26.30 Sentiment: Buy Disclosure: Held
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