good to see the share buy back went through during a real heavy...

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29/12/21

15:26

Post #: 58551023
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Originally posted by noomxx: ↑

Price is what you pay, value is what you receive.

I bought in a couple of days ago once CIM clarified the newspaper gossip.
1.5% position in the portfolio.

On fundamentals CIM is stacking up, and importantly, if broker forecast earnings can be believed both EPS and DPS are forecast to increase over the next few years.

ie FY20 was the wash out.
FY21 is the first year of re-based earnings, and future earnings forecast to increase (making sure one penetrates between headline and underlying earnings)

If this proves to be correct then earnings have bottomed out and will rise.

If this proves to be correct then market will re-rate the shares.

Interesting a further review of the credit suisse research is quite good. It's a nice conservative piece of broker research.

But their target price is based off a valuation of 12 times FY23 earnings expectations of $1.43.
I noticed two things in this:
a) Historically the last time CIM was trading on a PE of 12 was a decade ago (credit suisse case represents significant market pricing de-risking)
b) Credit Suisse FY23 earnings are forecast are significantly less than consensus market expectations.

Credit Suisse price target: $17.16

So all of this in my opinion is built into current market expecations.

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good to see the share buy back went through during a real heavy SP low. With less shares in the pool, the dividend could potentially get to $1.8-$2 within 18 months, there’s not too many places you can get a 10-15% return.
With so much in future work, a 24 year history of increased DPS, EPS and SP (a few years had some set backs) CIM has demonstrated at maturity can be worth $50! Do you think with the world’s biggest construction bull for the next 8 years CIM won’t return or surpass its former glory?

CIM Price at posting: $17.03 Sentiment: Hold Disclosure: Not Held
2 Upvote

0 Great analysis

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