ACF - Always Count on Framework, page-130

Hello Everyone.

I am pleased to be a new ACF shareholder as of today. I will refer to this quote from Peter Lynch's book "One up on Wall Street":

"If you stay half alert, you can pick spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them."

I believe I have found a spectacular performer right from my meeting room at work. I work in the construction industry and recently had a meeting with our Bunnings representative to organise a large order of reinforcing steel. They informed me they have a new preferred supplier called Acrow who were providing much greater service than the regular supplier and competitive pricing. This prompted me to further research the company and invest.

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I have done a PE ratio analysis below to determine what returns I may get on my investment.

I will use the upper range of FY22 earnings guidance in my calculations and a PE of 20 to be conservative.

SOI = 253.8m
FY22 NPAT = 14.5m

20 = x / 0.057
x = $1.14

Share price fair value = $1.14

That is a 153% increase in less than 9 months when FY22 results are released. A very good return if all goes to plan!

Once I have done a bit more research I will be able to share some additional thoughts.