PE now half than a few months ago

[#1]

why is their PE(3.) so low? they had 6 a few months ago, and people said that, that was very low. 2day they also expect earnings to be between 26&46% higher than previously.

[scandal]

Yet the share price is going down? Maybe because their income is lower than the previous period of high growth. The statement say for comparable period but on money web site they show a decrease in operating income? Anyone know what is going on? am i missing something

[#3]

I think the only reason why their price is this low is because they are under investigtion for insider trading, no corprate trader would like that on their sheets. as soon as that ends and they are no longer under investigation i think their share price will rally to over R10., almost certainly.

[scandal]

so what happens if the ruling goes against them? If so much potential who i willing to part with their shares now and why?

[Harathke]

CAE is an investment holding company...thus PE is only implied via its investments and can be misleading. I think a NAV approach to valuing it is more applicable than looking at its PE. Just something to think about...

[Yogi_1]

The investigation is not against the company, but one of the directors, who allegedly did not gain personal benefit himself (read earlier SENS).

[scandal]

how come this one is going down. Results announcement means is good the clarification states that it is a year end comparison? Am i missing something here?

[Major]

CAE is an investment holding company, so can't be valued using P/E - look at NAV instead. The drop in price reflects the drop in the valuation of the underlying assets.

[SimonPB]

an typically investment trusts trade at discount to nav (REM being case in point)