I've done a bit more research and something is wrong with SLR.
While P/CF = 3.74 and EV/EBIDA = 2.45 are both cheap, forecast earnings for 2018 have collapsed.
FY 2018 EPS concensus forecasts by 3x analysts:
- 3 months ago $0.08
- 1 month ago $0.06
- Current $0.04
Source:
http://quotes.wsj.com/AU/XASX/SLR/research-ratings
Click on "ANNUAL" to see the Estimate Trends for FY 2018 and FY 2019.
For fun I checked this for other gold miners and there is definitely a correlation between EPS forecast changes and current share price performance, (or lack of).
You'd have to read the analyst reports to understand the drops in their earnings forecasts, but I am guessing its related to company Financial Reports not being what they expected.
So for now I am steering clear. I like to see earnings forecast increases, not drops.
Sorry for the flip flopping.
