thanks gragou02. I suggest reading Just_a_guy post regarding EV, important re the planned debt reduction
Regarding the results: some acquisitions whilst immediately impacting debt (because of acquisition) do not have a full year of earnings. FY2023 will have a full year of earnings.
For myself this is: a)play on GUD's historical market pricing relative to current pricing (viewing through a prism of long term PE band pricing) b) logistical issues still playing out (they will normalize over time) c) RoE against book value using analysts forecast EPS d) Assuming acquisitions go to plan, and assuming Australian economy doesn't go belly up, then FY24 should be seeing a fully franked dividend north of 7% on current prices. This is one of my criteria for dividend stocks: 7%. My portfolio is split between 'growth' and 'dividends'. If I want dividends, well I want at least 7%. I get my 7% I don't need much earnings growth (but I don't want a value trap 7%)
The numbers seem to stack, so I have a small position. I am really no expert on this company, but hold as part of a 'diversified' portfolio. Only started acquiring in the last couple of months after the big price drop.
Hence my interest in madamswer commentary. This poster has much more detailed knowledge than I have. I have just used my 'scatter gun' approach to GUD.
GUD Price at posting:
$8.90 Sentiment: None Disclosure: Held
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