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09/07/18
15:29
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Originally posted by Jausty1919
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I still can't figure out the justification for this current price. Have Government policy changes & 'adjustment periods' to new insurance contracts not always impacted these guys (+ive & -tive) over time? Yet the underlying core products will always be (foreseeably) required? (And Konekt service deliverables are at the top end of industry benchmarks, insofar as they can be measured). I don't see how these recent downgrade(s) impact their core long term value drivers, competitive position or diversified growth/cost synergies strategy. Even if they do significantly impact growth over time I can't find any reasonable assumptions to quantify the current stock price. There are clearly some much wiser investors following this stock (very rare for HC!) - can anyone shed light on why they believe it is THIS cheap? Is it purely the perception of managements integrity/not thinking they have the right capabilities to execute the strategy? (If so, at what price is too low? Even now it would take a catastrophe to justify the price). Or is it just psychology/momentum & this sort of thing just occurs in micro cap stocks?
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Hi Jausty
Just remember.....
Best way to make money in the Stock Market is to buy when nobody else wants the stock and sell when everyone wants it. Underlying earnings per share 4 - 5 cents with forecast growth so definitely bargain prices at the moment. Not many stocks trading at 6.5 x earnings. Don't think it's going too much lower if at all
Cheers Rb