Why low PE of 4.x?

[CJ_1]

Can any value-investors help me understand why the PE on PSG is so low? Jannie Mouton hasn't disappointed in the past, why is this share being valued so low?

[geordie1]

Good question-I see this as a bargain and have invested heavily-however it's a long term bet as returns could well be subdued until markets recover-a lot of people criticise it's non recurring type of income-it jumps high and low in terms of profit but to my mind always seems positive to me-I am sold-rest of market certainly is not.Sasfin also looks fairly cheap?

[Maggie]

Why are you online so late, I thought that good looking wife of yours would have you cooking dinner??? LOL...

[CJ_1]

Uhm... have we met?

[shares]

It's a financial stock and as such has been hammered hard by the rising inflation rate, interest rate and the prospect of hard times for the economy (non performing loans), sub prime mess, blah blah blah. This started while the resources were still running hard so went unnoticed to a degree. Take a look at the price history or chart for the last year. The pattern will be rather similar for a lot of financial and industrial stocks. As a holder I think its medium to long term prospects are favourable.