BP - you have me intrigued ....what's this Net PE you mention
Always willing to learn something new
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BP - you have me intrigued ....what's this Net PE you mention
Always willing to learn something new
There is always a reason why some stocks are called blue chips ....Once people understand that then they need worry little less holding them ...Apple 10 years back was tremendously expensive ...but still gave phenomenal returns ...Blue chips have extra value as all want to hold them ...so they never go to so called Cheap valuations .
Maybe all know here but just want to go after blue chips for fun :p
Our man Lewis Gradon addressing the Auckland Shareholders Ass meeting next week
Might even mention FPH is a blue chip;)
If a member don’t miss it …or if not a member join the NZSA https://www.nzshareholders.co.nz/
Go after him buddy with all u got against FPH ...we poor small holders here do not have his and your kind of insights ...scaring us should not thrill u ...try him ...if u can make him say that FPH is overvalued at 29.50 ...:D
Also request him on behalf of we minority holders that they should provide regular trading updates if cant provide future guidance so that we all know whats going on and dont fall prey to scaremongers easily
Maybe I will agree with u that its a hold only at the moment with our insights as with new rates environment its fair value maybe around 30-31 ...though broker average target after last HY results is around 33 which includes 23.50 from our favourite Morningstar .
But with a company like FPH ...U never know from where opportunity comes and it shoots up ...As BP pointed out and I fully agree that its due for a bounce over the LT trend line ...when that happens not easy to predict .
Holding FPH is our only sensible option ...IMHO
I probably made the term up as I went ... however - it is not unusual to deduct the growth rate from the PE to be able to compare companies with different growth rates in value.
I am sure that it would be even possible to transform this value somehow into the PEG, but not motivated enough at the moment
Example:
FPH
(1) forward PE 38.8,
(2) forward earnings CAGR 13.8,
(3) PEG ((1) / (2)): 2.81 and
(4) the "net PE" would be (1) - (2): 25;
Makes sense?