I have been spending the day looking at combing at different seminars. In particular I wanted to add momentum into my active search for value shares. In its most basic terms value I deem to be when share price action has not yet caught up with earnings, but earnings are growing at least 10%. The problem with this type of searching is the markets can take a long time, sometimes years.to realise the value and accelerate the price. So I different types of researching particular using Relative strengths against Markets, in screeners to find TT. always appearing. Unless I restrict my research to be FTSE100 it appears. I was so impressed by their results when they came out, and now they appear in my future strategies..i think I may have to bite the bullet and invest in them. I am certainly sceptic about how much future growth to go, but.. all indications is the share price is below earnings and will continue to grow. I am not sure how momentum investing will last giving the FTSE100 highs, but.. well.. it just looks so tempting. i can always put in a relative tight stop loss, as i try this out.
Thanks Mogie Yes me too, share price is running close to highs and although EPS and PEG good a couple of issues that would be nice to see improvements come next update. From results - Statutory operating profit of £297m (2012: £301m), with the reduction driven by a goodwill impairment of £188m relating to our Specialist & Activity business and French tour operator. Quite a large chunk of profits wiped out here and france is not a one off has been consistently under performing for a while. GLA
Yes EPS can be one of the most 'abused' figures in the accounts, but yet with the PE Ratio it is one of the highly measured factors. They certainly can be inflated to make the picture look rosy. I do still look at EPS and PE Ratio, but I check the cash flow statements, and essentially 'free operating cash flow per share' to check if there really is enough cash to cover the 'earnings'. I have decided to hold off the investment for now, until the next trading statement. GL 2 you.
Hi Mogie thanks for post v informative. Yes 0.6 PEG is what I read when quickly looking up on digital look (i am a bit lazy and no v good with calculations.!) so nicely under the important 1. Going to look through the RNS later as quite a lengthy one. Directors have certainly kept the company in good shape and more than weathered the storm that hit the travel sector. Is EPS ever inflated so directors can ensure they get nice big share bonuses? sure i read something on this somewhere .. will try and get my head down and research but so difficult close to xmas so much to do. GG
sorry 12.44 PER
Hi Garden Girl, Yes Globo.. what a bear raid that was! But I am back in their and have solid faith long term Looking at PEG.. I calculate it a 0.6 using just the basic formula EPS Growth rate 19 / Earnings per share (underlying) at 12.44. I know Stockopedia calculate PEG slightly differently and like all these figures. I like to do a proper comparison when they update the fact sheet in a few days. GL
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