Another great post Pioupiou. Think you nailed the reason/s for...

Another great post Pioupiou. Think you nailed the reason/s for buying TGA. I can't find any other stocks to get into atm with much comfort. A lot of "value" stocks seem to be in mining/services area but determining growth forecasts for the comings years are guess work. With the recent gold breakout and QE, gold would seem to be a trade...but investment??? too hard for me...don't have the bottle for chasing that sort of reward.

TGA on the other hand seems to have a secure recurring revenue/ROE. re your EV/EBIT comments I think a ratio of 9 is reasonable and if anything conservative...and so therefore is that $2.54 SP price (mentioned in another post of yours). I don't know whether one can use Woolworths metrics as a guide for TGA but I will. WOW Ebit valuation has range between roughly 10-16. Removing the market 'bubble" years it has ranged between about 10-13. Discounting TGA somewhat and that ratio of 9 seems more than ok.

Now that TGA appears to be moving upwards, I think the biggest danger is for holders to sell way, way too early particularly if they have bought in on based on value using MOS and high RRR. I actually move to basic technicals and a trailing stop (with a fair bit of leeway) once a "value" stock starts to move up. This of course maybe far too short sighted and possibly I should hold as long term investment..but I can always buy back in . Each to their own.

Thanks for your thorough and informative posts.