“….their projected result for 2022 suggests an EPS of about...

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madamswer

16,409 Posts.

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11/02/22

10:00

Post #: 59503391
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Originally posted by gragou02 ↑

Boy, somewhat strange share price response earlier today.

I didn't think it was that strange. I thought it was strange when the share price went back up later in the day.
For me the overriding influence is the outlook coloured by supply chain issues.
I realise that the western world leaders have listened to their leading scientists (the polls) and have decided to live with covid but as long as the Chinese continue to chase a zero covid strategy and lock down whole cities the moment they have an outbreak, I think it will be hard for those companies relying on Chinese imports to have a successful next six month.
I think GUD have done a great job under the circumstances as they almost always do but their projected result for 2022 suggests an EPS of about $0.62 or a P/E of 20 (when the SP is close to $13) and I think that is marginally high given the risk so, yeah, surprised that the price is closer to $13 than $12.
(Maybe the Chinese could learn from the much maligned Boris - according to all the photos, he's been learning to live with covid since...well since the outbreak started in February 2020).

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“….their projected result for 2022 suggests an EPS of about $0.62 or a P/E of 20 (when the SP is close to $13) and I think that is marginally high given the risk so, yeah, surprised that the price is closer to $13 than $12.”

During the past financial year they made acquisitions equivalent to a significant proportion of their market cap (one still being finalised now) which will only make a part-contribution in FY2022, so you really need to capitalise FY2023 EPS.

GUD Price at posting: $12.73 Sentiment: None Disclosure: Held
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