BKL Bad News Looming???, page-66

First 66 Last

Share
Profile

Follow
JayWin

3,549 Posts.

413

14/06/17

15:22

Post #: 25271214
Share

Originally posted by JoeGambler ↑

I think if you believe in the theme of the rise, and rise of the Asian middle classes and their desire for quality western products, hang in there!

These themes take time to play out. The regulatary hit on the Diagou 'grey market' was tough, though direct export is what the business should aspire to in the lonng term anyways. This is in contrast to people walking into Chemist Warehouse and buying packs of fish oil and shipping it to china for 3-4 times the price.

The current share price is significantly discounting BKL's ability to grow into Asia, which is actually more proven than any other business in this space availiable on the ASX.

Consensus on Commsec is EPS $3.548 FY17 (24.5 PE) and EPS $4.60 in FY18 (19 PE) .

Over the last 10 years the company has achieved 20.9% earnings growth p/a.

Over the last 10 years management have achieved an average of 35% return on equity.

I understand this will take a hit factoring in the pull back this FY, due to excess inventory ect, but the quality of the business is there to be seen.

I think taking a short sighted view on a long term theme and quality business is the opposite to what investing should be.

Thanks.

Expand

Thanks for the analysis. Can you do the same, but omit FY2016 results and see what earnings growth and ROE you get?

That will show us a better picture of actual growth, ignoring that crazy year.

BKL Price at posting: $88.43 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

EMD

Emyria's Empax Centre chosen for mental health clinical trial

RDN

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

AML

Cultural heritage agreement puts Walford Creek exploration back on the map

STX

Strike Energy secures $153 million for Perth Basin gas projects

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

BRX

Belararox delineates another porphyry in Argentina at Tambo South

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

FHE

Frontier Energy achieves key milestone for Waroona energy project

SBW

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25