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Online Share Trading

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Undervalued?

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JimMorrison
Occasional Contributor
At this stage the word is out about Ellies, it is growing its EPS at a fantastic rate, it doesn't look to be slowing down soon and it has gathered mainstream media attention. In simple terms, why isn't it trading at a higher, more growth-indicative P/E (on +-12 currently), especially when compared to a lot of expensive retail and industrial shares?
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7 REPLIES 7
THRESHOLD
Super Contributor
?? - Major companies like JD GROUP are trading at under 8x earnings and 4x cash flow. They are also trading at a substantial discount to NAV.
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md49
Contributor
i cant understand the continued underperformance of JD group. understable that retail taken a knock and they have a significant "credit" line of unsecured debt - but to be beaten down to this extent!
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THRESHOLD
Super Contributor
Sentiment - 'tis a strange thing. Skipped their interim dividend - expanded their leverage model. Acquired enormous logistics interests from Steinhoff/Steinbuild. Now they are buying a property portfolio. Issued shares to finance all of this - but not too big an issue. The market needs to see their performance and establish the earnings on these new interests. Frankly - I think the interims painted a very promising picture - SO - at R36 - my first 100 000ish.
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JimMorrison
Occasional Contributor
Thanks for bringing JD Group to my attention. There may be others but my point is that unlike JD Group, Ellies is in a very high EPS growth phase.
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THRESHOLD
Super Contributor
Well... so is JD GROUP. They are gearing up their model and expanding into multiple new fields. AND ... at some point the funds will come for them. The danger with ELLIES is that she is a bit of a "one trick pony."
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Creature_of_the
Super Contributor
JD group hit new year low today....
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THRESHOLD
Super Contributor
And ELI just hit an all time high. HMM - I feel this trending toward a "trader vs investor" debate.
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