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Community


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Online Share Trading

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Interim results

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Vano
Regular Contributor
Shoprite down by more than 2% this morning after posting their interim results. Results seemed OK to me, or did I miss something? Another case of "below expectation" results?
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14 REPLIES 14
SimonPB
Valued Contributor
a stock on PE of 26x needs better than 8.6% heps growth
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mullet_fish
Regular Contributor
Store openings slowing....(running out of options/new developments) Africa story will be under pressure with resources /oil price Banking and extra services will be the growth story....this is where the action will be....
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AP
Regular Contributor
Gap seems to be closing (-1.2%) at moment; wonder if this was not expected in a way and subsequently already included in the share price. It was expected that revenue from Nigeria, etc, would be affected by oil price, burn down of a store, etc. Therefore, probably not really unexpected or a major disappointment and hence a relatively small drop this morning (or is it wishful thinking as I'm holding Shopwrite shares as well?)
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AP
Regular Contributor
Gap seems to be closing (-1.2%) at moment; wonder if this was not expected in a way and subsequently already included in the share price. It was expected that revenue from Nigeria, etc, would be affected by oil price, burn down of a store, etc. Therefore, probably not really unexpected or a major disappointment and hence a relatively small drop this morning (or is it wishful thinking as I'm holding Shopwrite shares as well?)
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Rams
Super Contributor
PE OF 26 would work out to about 670 cps compared to current 370 ? Almost 50 % increase from 2013 of 340......it seems any exposure to Nigeria is not so GoodLuck?
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Goldminer
Not applicable
What the hell is going on with this share price? Is there something that the chief executive have not told ordinary investors? What is driving this. I would like a response or explanation from the CEO.
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Siener
Contributor
26 PE. 8% growth. Prospects in Africa, with plunge in commodity prices like oil, terrible (just witness Nigerian Naira's collapse). Fair value much lower, probably below R140.
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Rams
Super Contributor
Below 140(135 odd) at current earnings would put the PE around 18, if you bought around 150, and below current price, would be a reason to sell...
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SimonPB
Valued Contributor
the share price is not the issue of the directors / CEO .. they manage the company, we manage the share price ..
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Som2
Contributor
Very powerful statement, Simon. You are very right.
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prancing_horse
Super Contributor
True, but the question is "Is the market (shareholders) always right?". I believe, "always?", NO!. 90% of the time, YES. When the market gets it wrong that is when there is money to be made. Shorting SHP at 195 and over 200 was definitely the right call as the market got this one wrong at that stage.
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AP
Regular Contributor
For PE of 18 @ 8% earnings growth, price needs to drop to 120... Question is with QE, what is the new acceptable PE...
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AP
Regular Contributor
For PE of 18 @ 8% earnings growth, price needs to drop to 120... Question is with QE, what is the new acceptable PE...
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SimonPB
Valued Contributor
right as in share price = fair value .. very very seldom .. most of the time over or under valued ..
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