About 12 months ago i decided to only adjust my buying criteria based on a recession type scenario. I have about 6 criteria. One was the macro. Had to be good and offer company chance to grow earnings even in downturn. Plus all the companies had to be indicating substantial growth from FY11. Those with the best prospects i was willing to buy at 8.5-9.5x FY12 earnings. Others at 7.5x. I've now reconsidered things and decided to further tighten the screws. Hence, in the 'new normal' i'm only willing to buy those with PE in the range of 4.5-7.5. Hence, if IMD has FY12 EPS of 21c that would mean the maximum entry price is 157.5c. But one also has to believe that IMD can grow EPS by at least 10% in FY13 order to qualify. Criteria assumes ALL purchases are cum-div. Hence at current SP of 158c IMD is just outside the range.
IMD Price at posting:
$1.59 Sentiment: Hold Disclosure: Held
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