RE:RE:5 Times earnings HyperCube wrote: Marley66 wrote: Yes! We're now at 5 times adjusted earnings when taking currency fluctuations.
I have no idea as to when or if will get multiple expansion. I wonder how do sellers thinks when giving these shares at 7.95-7.99$ ?
probably they think they will be again able to buy at 4 times earnings?
will see ....in time
I for one sold some at $7.70. What was I thinking? I was thinking that I was selling very cheap. But the price had increased seven folds since the last time I bought ($1.10 in March 2020) and HMM.A was a too big chunk of my portfolio. I had to sell some to diversify.
I can understand that. I've been sitting on it for a long time, but the problem with selling is obvious and we all know it, that if current earnings become somewhat "normal", EPS could be > 2.00/share annualized, the stock eventually gets re-rated as a "good company to own", etc, etc, and if HMM shows continual year over year growth/ROE, a reasonable P/E becomes 15 +/-?. For a share price of 30... Last Q earnings was 0.49 and the new fab is starting to contribute to earnings. Could Q3 start to see >0.50 EPS/Q?
Not saying that's what will happen, but I have seen companies rerate in the past. HMM sold for <0.50 book for years and years, that gap has steadily closed, and it now sits at around book. We should start to see a premium to book develeop so long as earnings hold up.
For my part I'll continue to have have diamond hands while observing the re-rating which should continue.