Today we saw Worley Parsons go against the market trend by posting news of stronger than expected growth.
You can be sure CCI Holdings is experiencing the same strong growth as it services the same booming sector as WOR. Yet CHL is priced an a multiple of 10.2 whereas WOR is on a P/E of about 40.
It almost seems to good to be true.....a strong growth stock with a cheap earnings multiple. The reason this little gem is so cheap is the market hasn't yet caught up with it following a period of accounting writedowns which produced bottom line losses at a time when the operating businesses were enjoying strong growth.
Don't procrastinate, this anomoly won't last. CCI Holdings (CHL) will close the gap and attract a P/E ratio much closer to the 40 currently that WOR is trading at. That provides potential for the stock to multiply in price up to 4 times it's present level over the LT. Certainly food for thought.
The principle here: Buy the cheapest house in the nice street.
CCI Holdings (CHL) is undoubtedly the chapest stock in arguably the strogest market sector.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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