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Invesco Water Resources ETF T.PHO


Primary Symbol: PHO

The investment seeks to track the investment results (before fees and expenses) of the NASDAQ OMX US Water IndexSM (the underlying index). The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index seeks to track the performance of companies that create products designed to conserve and purify water for homes, businesses and industries. The underlying index may include common stocks, ordinary shares, American depositary receipts (ADRs), shares of beneficial interest and tracking stocks. The fund is non-diversified.


NDAQ:PHO - Post by User

Bullboard Posts
Post by Moneyman777on Jul 27, 2015 5:35pm
145 Views
Post# 23964767

Very Undervalued - Expect more for the share price

Very Undervalued - Expect more for the share priceI did a FCFF analysis, two stage model, and even with three years at 20% and having sales growth declining to 4% I got the current value of PHO at 1.36. This is also considering capital return is at 20%. Which PHO is currently beating, and will continue to beat due to the US $ revenue. I also found a swiss company at the $300 million sales mark in the same space growing at 4% and they still retained a 20% roe, so this looks very realistic. Now if we leverage the company and deploy that extra capital at 20% over the next three years, I got a price of essentially $1.80. Scalling up revenue growth for five years, slowly declining from 25% growth down to 4%, I was able to get  a whopping $2.36. Considering even in the most conservative forecast is a double... yeah... this thing is really undervalued. I mean.... realllllyyyy undervalued........... So if a Swiss based vacuum measurement company comes by and makes us an offer on PHO. Guys, don't even DARE take less then $1.40 for this puppy. I don't want to get ripped off!
Bullboard Posts