Member Info for ITwizzkid

AEP has got phenomenal earnings growth, and palm oil prices are shooting up! I'm aiming for 950p, which is just over 10x next year's earnings forecast. Any thoughts anyone??

I just went over the past 5 years accounts for this company again as the drops recently prompted me to recheck if I got my valuations right. Anyway - I did. This is a fantastic, solid company, trading at less than its tangible book value, and a very low multiple of long term earnings. I'm just looking to time another buy to top up my holding - will have no problem whatsoever in holding these for 5 years. The dividends alone will make a fantastic return.

Thanks for that - good info there. I bought in too, the company seems very undervalued right now.

As far as I know PVCS is not exposed to US markets, mostly German and Japanese

I still can't believe how few trades are being made on this company. I guess there's not much news coming from the company right now, but still...it's cheap! Surely there should be more liquidity than this?

You may be right - if they've turned the company around it could become a good investment, but based on the past figures you'd be getting negative value for your investment right now. High gearing means that it's got a large amount of debt compared to its value. I would guess that the thing holding the price down is mostly the fact that it's got negative asset value, it's like giving someone a pound and getting back 50p. I'm looking forward to Thursday though - if, and only if, they have positive equity and are showing a healthy profit, it might be worth a buy. GL in your investments!

Yes of course - my analysis is based on Price/Average 5-year Profit per Share (to smooth out the recessionary bumps) and Price/Current Tangible Book value. These figures are based on the 2008 results, and come out as: P/Profit: 13.04 P/Book: -5.49 Net tangible asset value per share is -97.25p (2008 figures). This, coupled with its already very high gearing, and interim loss to June 09 make it look like it's 1) overpriced and 2) quite a risky business to buy. 2009 figures are out next week; hopefully there will be a major change, but as last year was not a good one for this sector, I'm not hopeful. Right now I'd say there are cheaper and less risky investments out there.

Apologies for my revised opinion here & not meaning to de-ramp or anything, but just did my due dilligeance and realised this company is not worth the current share price - IMHO.

I have a good size holding too - AEP should pay off quite well over the next year or so

Agreed - seems underpriced to me. GL all

3 months since anyone posted here - thought it worth waking the board up, now only 21p/share, around 1/10th of book value. Got to be worth a punt at these prices. Seems to be the most undervalued share in the lse? Opinions anyone?