GREY:ALARF - Post by User
Comment by
loosecannon3on Nov 21, 2018 2:56pm
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Post# 29006277
RE:Analyst negativity - faulty projections
RE:Analyst negativity - faulty projectionsmickeymouse wrote: Scoita currenlty has a target price of 19.00 - when you look at the numbers presented you see that they are expecting CFPS to plunge siginfiacantly next year - why is a mystery??
CFPS
2018 - 1.97
2019 - 1.64
2020 - 1.67
Also from their report their adjusted payout ratio is way out of whack:
2019 - 102.5%
2020 - 98.2%
Very negative projections and their cash deployment expectations are also very low - 2019 they are predicting a drop to well below 100 million.
This anyalyst clearly has a negative perception and either is not listening to conference calls when the positive capital deployment environment is mentioned or believes that there will be significant redemptions - in either case way out too lunch with the numbers.
With the positive resets in 6 weeks the payout ratio will drop again and new deployments will move the needle well into the 80's - amazing that a company that follows through on their promises and has dealt with problem files in an transparent and conservative manner is still treated this way by the so called experts - still trading at close to a 9% yield - but then again anything with a yield of over 5% is ridiculed and most of the analysts are on this bandwagon as they hate buy and hold dividend investors as less trading impacts their industry profits.
Would you rather have the company pay out 90% of their cash flow to you as a dividend or payout 50% with a lower dividend? - seems like a no brainer to me as I would rather have the cash in my pocket rather than leaving it with management where mistakes can be made.
Sorry care to explain what the positive resets mean? Thanks in advance!