make sure you dont confuse historical vs entry yield.
as i said - I was calculating the PE based on what I expect from full 2014 CY results.
ie the $22.6M NPAT 1st half just handed down - and i assumed a notional $22.6M for 2nd half = $45.2M.
That gives a PE of 20 at around $9.45 which was price when i did the calc.
Realistically CCL are guiding to lower profit in 2nd half again - so Im being a touch over optimistic.
But I cant justify holding the stock at 20x pe let alone more. So tis a moot point
There'll be analysts that argue brand value plus 'monster' future modelling upside - but all stocks have those arguments.
I need a stock to justify itself on current earnings basis - and this one looks like a value trap to me in the short and possibly even medium term.
CCL Price at posting:
$9.26 Sentiment: Sell Disclosure: Not Held
