Great posts everyone. For the record I do not hold these, shares but i am waiting for an appropriate entry point as i missed the downs in recent months. I agree with most comments about about the valuation, and it seems a consensus agreement that if you can buy at or below$15, that is plenty of a margin of safety.
The good thing with this stock is that, it has such a great record of growth performance and margins, consistently recording a profit- every year for the past 20+ years. This year it seems they may amortise some of the balance sheet debt-maybe up to $100m to be safe- pay no tax- no dividend- retain cash within the business ready to purchase cheaper debt in the future,
Great discussion around valuation and it is correct i believe to use a P/E multiple for EPS for 2021 or 2022. In 1 year price should be at least $18, but by 2023 at least $35.
remember most profit are made at the buy price, so buy when you get a good buy price- i think below 15 is good.
The only weakness with this stock is any major bad news then it shatters the stock price. The reason to invest into this stock contradicts itself- you invest because of the good margin/balance sheet and steady EPS growth- hence a constant rising stock price-, but it takes one event for all those years of gains to evaporate. is it worth it? yes, if you can get in at a good entry buy price $
thanks
CCP Price at posting:
$18.27 Sentiment: Hold Disclosure: Not Held
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