Above posted a week ago.
Well that did not happen.?
Big surprise?
Share price today $2.44.
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I’ve told the neighbour to stop asking for the next big thing.
I just said to him to get his bowling mates to follow what a guy called percy does on Sharetrader.co.nz
He showed me his phone and sure enough sharetrader.co.nz is on his favourites bar.
Hope he now leaves me in peace about ‘investing’ but I fear that means he’ll rave on about Jacinda more.
Percy, do you look at the basic TA to decide when to buy or what price are you willing to pay for it?. I remember a few years ago there was an article I think in NBR stating that SKL was a kind of forgotten company by the market (as I can't remember maybe I'm wrong). Since then was in my watch list but I never progressed with reading more about it. So I ask you this because following the recommendations from KW post about using TA right now looks, even better when you bought it, however now looks at the highest peak in the last 5 years.
TA is a helpful tool,however I used FA to decide to buy SKL.Was pleased when I did look at their chart and saw my timing was pretty lucky.
SKL I have owned previously.
They had a habit of over promising .
SKL has remained on my watch list.So I know the company reasonably well.Impressed Lizz Coutts is chair.The announcements over the past year or more told me the company is in good shape,focussed and carrying little debt,and has the capacity to pay increasing dividends.
SUM agm gave me a big wake up call.My thinking that the property market had little affect on the retirement sector was wrong.So I sold my total holding in OCA.So I had money to sit on or invest.
I went back to SKL. Their earnings are mostly overseas.Therefore the low interest rates in NZ meaning a lower NZ $ would work in SKL's favour.
Price under $2.20 did not look too dear, as I saw their PE ratio was 14.5 and I expected their eps growth rate would work out between 10% and 18%.
PE ratio today is 16.13 at sp $2.42,so still reasonable value considering all the above points.
Lets not get ahead of ourselves here. Its all about context. I had a few in 2012 bought for 1.55. If I had sold @2.42 it would of been a CAGR of 7.2% hardly interesting. Maybe overall a CAGR 10% incl divs. My actual exit position was 2.18 in February for CAGR 5.65%. Glad I sold there's much more exciting stuff. Made 50% on APT in 3 months...
Its all about timing not back slapping for a small gain this year. Remember to DYOR on why the SP is rising, will this continue due to an amazing market opportunity or is it a basic revaluation? Based on their past history I am favouring the latter.