ZEN 0.00% 97.0¢ zenith energy limited

I agree with that good info, when a share price is based on 'not...

  1. 3,205 Posts.
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    I agree with that good info, when a share price is based on 'not profitable' companies or those with issues.  Share prices and holders do crazy things.


    But I am a bit simple.... I saw the numbers for the fin year just finished.  And I have no reason to doubt the forecasts re fin year 19, which I note are 5-10% up on this year just past.  In fact, ZEN seem to under promise.  And I think the forecast is not assuming all sorts of new contracts (mind you, those take a while to come on anyway).


    So EPS were this year 8.5 cents.  And I will assume, given in info in the market, the EPS will be between 9 and 10 next year (as a base).  And the company does seem silly simple to me.  Now if the company gave up margin for sales they could not forecast a growth in earnings (based on new plant coming on line, I assume).  And this company would be insane to give up margin for growth.  There is no need.


    Now, when the first half came up the share shot to $1.20.  Now the 2nd half has come out and we have a 33% fall to 80 cents.


    This leads one to want to know WHY the EPS fell from 7.5 cents to 1 cent (as a poster said).  I actually did not see those numbers published.  If someone can show them to me, I will be interested.  One can only find a gung ho 1st half.  Then the full year.  Do I care that the profit is 'X' for 2018, then projected to be X+10% for 2019.  Do I want to get into the lumpiness of it all.  If, in 2019 they make 8 cents EPS in first half and 2 cents in 2nd half, do I care.  Maybe this is share to buy at end of 2nd half, then sell at end of first half.

 
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