ROE of 18% , PE of 12, Let's sell it down ? it's all human irrationality

I have suspicion that some investors selling CMP have no idea of the fundamental financial metrics of CMP.
It's earning per share is about 0.5 cent,  Return on equity about 8.7% for half year.
Based on this data without any growth in earning, CMP is sitting on P/E of 11.5 and ROE of 17.5.

In addition, there are many factors that will "likely" contribute increasing profit. 1. further offshoring process 2. lower AUD. 3. eHealth. 4.healthy demand for its product => CMP growth should be quite predictable.

I am not sure if people get panicked about reading somewhere "capital review" "capital rising". By looking at the ROE of 17.5%, any injection of capital at current return is favorable and will produce strong return.
I think CMP is in a good position to invest more through loans/partnership with other firms. Given medical device industry is competitive, CMP seems to have the upper hand in technology, but less in production cost, which should improve with offshoring, as reflected in increasing margin. Don't forget, its product is leading in China market!



One insightful quote from Buffett.
"Assume you own your own business and one day a buyer comes to you with an offer to buy your business at 25% below the value you feel your business is worth. Most likely, you would send that buyer away. Ironically, in the stock market, many people behave differently. They invest in a quality business and lo and behold, the market turns volatile and the stock price drops by 5%, 10%, or more. Nervous about the decline, many choose to sell. Yet, absent the discovery of fraud, what can really happen to a business overnight to make it worth 20% less than the day before? Nothing happens to the business; it's irrational human behavior. When you invest in businesses and not stock symbols, you are going to ignore this irrational noise."