GREY:ZCLCF - Post by User
Post by
Roxy27on Feb 17, 2017 3:01pm
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Post# 25862829
SP and Valuation
SP and ValuationI'm looking for feedback on why to BUY/SELL at this level.
Analysts have price targets of $9.25-$9.50 (dated 2016/2015 so older).
Last year the company issued a special dividend of $0.50/share and increased the dividend 60%.
It looks like results in 2016 will end up modestly over 2015 so we could see another special dividend and some level of dividend increase.
But why is the share price trading 30% higher than the analyst target if results are largely in-line with expectations.
It seems that the SP is at least $2.00 higher than fundamentals and not worth waiting for the special dividend if 50 cents will cost you $1-2 in share price.
The SP is trading based on annual dividend yield of 6.7% (including the special divi) which is great, but shouldn't some risk be factored in (timing and lack of guarantee).
I do think the company would be a great target for take over based on the business segment and high cash returns but I also don't like holding over valued positions on that premise alone.
Wondering thoughts on this as the share price spiked again today on big volume.
Good luck