PE is 24, ***** dividend payout ratio. This share is like one of the Bubble that is going to burst soon. If you want a detailed analysis of its activity pull out the lastest BA900 stats data from the SARB website. You might want to change your mind. This share is not worth the price.
Simon,back in March 2010 when the share was trading under R100 you said that you had a target of R400.I am impressed with the faith you had in this share when there have always been so many doubters, and forumites came up with so many reasons not to buy(as they still do).I have questions:1.why did you believe so strongly in CPI? 2.Do you still have a target of R400? 3.If so,any time frame?!
R400 was toungue in cheek(ish) but it's not impossible if things get totaly crazy with CPI (would require a PE close to 30, maybe even above which for bank is insane - but hey we often see insane) .. I still hold, but off loaded 40% of my holding around R165 .. an it has really become more of a momentum play than anything else, it consolidates for a while then sets off upwards again .. sure great company giving the biggies a run for their money, but long since it was cheap ..
on elesson I have finally learnt .. took me a long time as it defies belief and/or logic .. but basically sometimes common sense gets tossed out the window for way longer than one would ever expect .. now when I see it, I don't ask questions I just ride it .. but as I say, took me a long long time to learn this lesson ..
Agreed Simon.. one has to remember that all the talking heads and suits investing "smart money" have to beat the index OR each other.. so when a share starts to move they need to get on board or else they get left behind in the pissing contest...this has nothing to do with valuations or companies..but personal bonuses and jobs are at stake...once you realise this and you have..market or a lot more fun!
In this context..one only has to look for companies that are starting to outperform it on a weekly basis as this is where the "new smart money" will be running and thats when you sell...when it starts to lag the overall market