FPH dropped 5.5% this morning on the news that it increased profits by 76%
It seems the market has priced in today that FPH was previously too expensive.
Reading back on this thread for this year it had been mentioned by many posters that FPH was an expensive share and the shareprice was showing weakness.
The confirmation of report released today, FPH was market re-rerated.
It seems in times of Bear cycle environment a PE of over 30 requires tremendous perceived growth, the combination of +76% profit growth increase now and a forecasted +25% growth going forward is seen by the market as obviously not enough to hold the PE of over 30 any longer.
My back of the envelope calulation is that PE is now about 24....is this level about right for FPH?
..or is there others factors in play I have not mentioned and/or the high PE is not the only major issue?