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Online Share Trading

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is this opportunity real or too good to be true?

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fressa
Regular Contributor
Ive been watching Calgro for about a month and already seen movement of 16%. any opinions on whether this is gonna run for a while or is it one of those "too good to be true" scenarios? They do have a very healthy pipeline over the next few years. is this still priced cheap??? Any thoughts?
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27 REPLIES 27
topgun
Super Contributor
On a forward PE of less than 6x, a healthy orderbook, trading in a sweetspot in the domestic construction sector and after treading water for a couple of months, the share is going to hit new highs soon...
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SimonPB
Valued Contributor
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fressa
Regular Contributor
So guys, this worth a buy at these levels? or worth waiting for the price to drop a little first?
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Not applicable
probably too late to buy now - you are seeing a runup to its results, typical of small caps. Looks like a whole lotta analysts have being doing their homework. Best time to buy these kinds of stocks is in the middle of the results cycle - i.e. June / July for this stock, or Dec / Jan after the hype has died down.
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fressa
Regular Contributor
thanks skaaptjop. is this principle true considering Calgros 6 year outlook? I understand what you are saying, but my concern is that it has legs to run even further and that by waiting i might really miss the bus. your thoughts?
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Not applicable
Well, folks were prepared to pay R5 a share earlier in the year off the back of previous results, so yeah, it probably is still quite cheap.
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SimonPB
Valued Contributor
depends where you think it is going .. order book around R10n over next 6+ years means they already have next 6 years earnings in the bag, an PE way low ..
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Not applicable
ah, the construction industry's infamous order book.
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fressa
Regular Contributor
Well its up 4.5% already today. Will be interesting to see what happens with this. Ive put an order in at R4.00. its a cheeky bid, but figured if i get it great, if not well, other opportunities will arise. thanks for all the input guys!btw, skaaptjop, do you have a position in calgro? we know simon backs it (and holds shares)
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SimonPB
Valued Contributor
:) ya .. biggest myth since the tooth fairy
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SimonPB
Valued Contributor
err, up 20% at 540c .. somebody eager ??
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fressa
Regular Contributor
definitely wasn't me. Just hope it pulls back to my R4 mark. Could this be an indicator of more short term gains to come?
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topgun
Super Contributor
You missed a great opportunity at the open...must be new around here to look a gift horse in the mouth..
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fressa
Regular Contributor
Ya, Im just overly cautious. Ive been unsure about this one. seems ive missed out. but ive gotta stick to my stategy. If the price comes down ill take a position. For now, im happy to see what will be. as the old saying goes, you win some, you lose some - this one i lost.
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ndabs
Frequent Contributor
so someone out there is down 19% already.....ouch
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fressa
Regular Contributor
poor fellow :), very strange days trading. the smart people took some great profits on this today. now im waiting for this to hit R4 again!!!!!
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Harathke
Regular Contributor
The assumption you are actually making is that this WILL hit 400cps again..
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fressa
Regular Contributor
Im optimistically hoping that it will. I dont expect it to. IF it does, i'll be there to swoop in. if not, well, another opportunity will come up some where.
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Harathke
Regular Contributor
What you're saying is actually counter-intuitive.. Cause, if it does ever come back down to 400cps, its probably on bad news and disappointments and you actually don't want to be in it. But, if it never comes back down to 400cps, then everything is working and you actually want to be in it. Just saying.. :)
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