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Online Share Trading

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Actual Results

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Not applicable
So with the results out - how is everyone feeling? Can't understand why this share isn't flying?
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7 REPLIES 7
Not applicable
404% up in Revenue - to R990M Operation Profit up by 373% to R83m Profit for year up by 416% to R55m Headline earnings per share up 126% PE - has come down
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f4jsa
Frequent Contributor
With the amazing results in mind, when is this share ever going to "fly"?
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SimonPB
Valued Contributor
the amazingness of the results does not matter. What counts is how they compare to expectations, so seemingly they merely fall inline with what's expected.
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duke_vest
Frequent Contributor
how can that be. if a company has been trading for "x" amount for a period of time, and then discloses figures like these, doesn't that change the value of a share? or is it based on sentiment, like when some or other minister says something stupid and the price plummets, or when the interest rate hikes or falls? doesn't seem like a very balanced environment to me to buy and sell shares on facts and figures. and i speak for many shares, not this one specifically.
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SimonPB
Valued Contributor
duke, a share price reflects the view of the future (12-18 months out). SO if the market is expecting amazing results it will price those results into the share price. So that when the actually results turn out to be amazing the market says; "well we expected that and it is in the price'. The thing to watch is if the results are better or worse then expected and people ahve to adjust the price to reflect the new reality as apposed to the expected reality.
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topgun
Super Contributor
you have to consider the valuation ie. the extent to which the good news is already factored into the shareprice! Vox grew HEPS by 123% to 7.5 cps to Aug '07. This year (on my estimates), HEPS will grow by 53% to 11.5 cps and by 30% next year to 15 cps. At 230 cps, the historic PE is 27x on a 12-month rolling basis and 18.6x forward according to my estimates. This is a premium rating to the market and seems to discount some of this expected growth into the price already, hence the share's current lacklustre performance. The trick is to identify shares that are "cheap" relative to their expected growth ie. where the market underestimates growth potential or overestimates the bad news (as reflected perhaps in the retailers and financials at present).
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duke_vest
Frequent Contributor
thx Simon. please give your email address. i have another question or two
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