Call me naive, but can someone explain what the fuss is all about with CAB? CAB announced on 30 May that the new legislation limiting the taxi surcharge to 5% would only see service fee income drop by $11m. They also said this decrease could be offset by other factors. Based on this information there now appears to be very little difference between the Cabcharge today trading at $3.75 compared to the Cabcharge +1 year ago when it was trading above $5. In addition, CAB have been making increasing profits YOY and are in a monopolistic position so hardly warrants trading on a P/E of ~7x. Am I missing something?
cab - looks under valued.
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