With the strongest growth in profitability to occurr in the FY we have just entered and the one to follow, CPB cannot realistically expect to grab this stock at a level below 20 times 06/07 EPS.
The question is, what forecast earnings and dividend are expected on the back of announcing 1.4c for the last 6 months of the 05/06FY? An educated guess would be earnings of around 4c for 06/07, and a dividend of 2.5cff.
This puts a target shareprice of 80c on the stock to be achieved during the course of 06/07, and exposes the current 31cps offer for CHL as grossly underpriced.
It's a very good time to be already HOLDING stock in this rapid rising star of the mining services sector, but not too late to climb aboard as the shareprice hots up!
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)