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$94.73 blackmores limited

P/E= Roughly 76, very expensivecancelled the dividends.political...

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25/08/20

16:27

Post #: 46806020
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Originally posted by meghotcop: ↑

We all think we are rational investors ... so we think. He is a comparison:

CBA $70.50 a share, past earnings $4.25 for FY 20
BKL $72.50 a share, past earnings $1.04 for FY20

Different businesses, different size, different risks and COVID-19 exposure - all granted. But BKL is 4 times dearer. What for?

The immediate rational explanation is that BKL is a growth stock. But really? BKL's management anticipates profit growth for FY21, that is all. Nothing really tangible said.

The figures below were posted on 16th August last year by a contributor who goes by the name of noomxx:

2016 EPS $5.76
2017 EPS $3.40
2018 EPS $4.06
2019 EPS $3.09

I don't own the stock, nor am I long puts or short call, or shortening.

There are no postings here recently. Is it coz all investors have moved on, or what.

Why would you put out a buy sentiment?

Intuitively, I would find an equity investment into BKL riskier than into CBA. Why should one pay 4 times as much? ... Unless the business grows at double digit rates. But there is no indication for it really.

Enough of my ramblings ... I am going circles.

GLTASH

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P/E= Roughly 76, very expensive
cancelled the dividends.
political risk as a big portion of business in China

(I added some shorts today)

BKL Price at posting: $71.58 Sentiment: None Disclosure: Not Held
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0 Great analysis

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