Sweet dreams, page-5

Thanks for the sweet dream sentinent PP... lol. Re valuation, the underlying eps for TGA is 22.7c. The reported eps has been reduced owing to the CRA acquistion. I dont know enough about accounting matters as to why this reporting procedure is followed. I note that reported ROE is approx. 19 % yet underlying ROE is about 17 %, which seems somewhat contadictory (to my untrained eye) given the eps used. Given underlying eps 22.7c perhaps, (maybe naively) one can extrapolate a current pe of 11.5 ish. Actually my nabtrade has eps of 21.8 (not sure how this no. Is derived) Anyway current PE seems undemanding with a likely rise to pe of at least 13 and hopefully 15.

Re the comments in the other thread (i am too lazy to write a separate post) i too wondered about the ROE performace hurdle for the CEO. I did not know the ROE hurdle had been lowered. I too would of thought expectations would be for an increase given the increased reliance on leverage (but not excessivley so in my opinion). Wondering aloud, perhaps it goes back to the underlying ROE that I commented on, but the fact they reported the "non underlying " ROE would counter this arguement. I trust / hope that the performance hurdles formulated comparing some 28 "similar"companies ( according to the Annual Report) resulted in the ROE no., and is not indicative of executive avarice. Maybe I'll go to the AGM and ask the question.