Since I purchased a parcel of SWM mid-last year, the broker's price targets always lagged the price action and suggested that SWM has had its run (Credit swiss's current target--topping all broker targets--is 50 cents). But I believe it is time to accumulate and would like to hear from other shareholders. Here are my thoughts:
First, the interim report is stellar: Credit swiss's EPS forecast for 2021 is 5.8 cents (and the EPS is forecasted to decrease slightly in 2022) which underpins their target price of 50 cents. The annualized EPS based on the interim report is going to be around 11 cents (and the Google deal will add roughly another 1.5 cents to that from 2022). So to me, the share price can easily double (and it is odd why forecasts continue to be so off).
Let us do another back of the envelope calculation:
Based on the interim report, the current annualized NPAT of SWM is around 165 M. The Google deal adds another 20M to NPAT (I doubt capturing this revenue involves any cost other than a roughly 30% tax: it is simply free money for copyright) which brings the PE (based on current share price) to around 4. When SWM's annualized NPAT was 185 (2014-2015), the share price was over 1.8 dollars. Doomy outlook and shrinking EPS decreased the price: but it seems that SWM is carving its own niche (and EPS is growing now). So it seems fair to me that the price goes up to around 1$ and then waits for the cards to unfold before further price hikes.
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Last
17.5¢ |
Change
0.010(6.06%) |
Mkt cap ! $253.9M |
Open | High | Low | Value | Volume |
17.0¢ | 17.5¢ | 16.5¢ | $60.04K | 352.1K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 57751 | 17.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
17.5¢ | 433094 | 20 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 67761 | 0.170 |
10 | 294083 | 0.165 |
17 | 472115 | 0.160 |
10 | 650057 | 0.155 |
31 | 682806 | 0.150 |
Price($) | Vol. | No. |
---|---|---|
0.175 | 423084 | 19 |
0.180 | 225505 | 11 |
0.185 | 347632 | 9 |
0.190 | 495443 | 9 |
0.195 | 92027 | 3 |
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