I keep trying to get in... damn market maker is on holidays... I think it is a good buy.
(hehe- good buy that is.. NOT good bye!)
As for why the price is dropping - I can't answer for people's day to day machinations.
ROTA of 100m / 200m TA = 50% - excellent Debt - 160m (about 30% unsecured) with 160m free cash = 0 - safety NPAT revised guidance of 100m. - ok Strong Management, Experience - good Good Historic Growth - good Interest cover - 25-30x EBIT - excellent Strong cash flows - excellent Liquidity of stock - ok
So, the question an investor needs to answer for this stock, is how much are you willing to pay for a vehicle that will bring you 100m p.a., with good growth prospects in the medium-long term. If that answer is 525m - 685m or less (depending on how you treat the cash), its a buy. If you subtract the cash from the market cap, I would treat it as a screaming buy.
I would call this company somewhere between 40-50% undervalued. Subtract whatever risk premium you see fit.
I have not been able to find much better, and am trying to enter.
FLT Price at posting:
$6.82 Sentiment: None Disclosure: Not Held
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