"Agree.
But sometimes the lag is too great. As you know if SKC say earns 20%
next year and there are large positive events happening in Dec., then the
market will take notice. Markets tend to work about 6 months ahead in a
normal situation.
By the way, if it earns $105 mill. this year (last year $85.1 mill.),
then the earning rate will be an excellent 23.3%. The prospective numbers
based on a $9 share price are: Shares: 212 mill. Profit is say $105 mill.
E/S=49.5 cents. Div: 44 cents and imputed yield: 7.4%. P/E: 18.2
Still very nice numbers and a good imp. yield. All we need now is for
interest rates to come down-and there is a good chance- and the numbers
would look better still!
I would think there is a very heavy demand from "LONGS", investors who
want to keep the SKC shares for at least another 2 to 3 years. That will
enable them to partake in the massive development phase now in
progress.
So, there could be a scramble to get in "at the bottom" before we get
to that price of $... at the opening of the new Convention Centre in Dec.
But we still have some legislation to meet however. There will be +
and -, I would think".
Gerry
At this rate, forget about the share buyback. Another
positive coming up!
See IRG research reports
