Post by
themangokid on Mar 23, 2016 8:05pm
in a vacuum...
...the results were strong. 2015 eps of $4.38US ($5.79 Canadian) giving cxr a 2015 p/e of 6.96. 2016 guidance of $6.27 - $6.77 (current consensus from the street is $6.30). Even with earnings of $6 per share that's a 2016 p/e of 5.08. And growth forecasted for 2017 and beyond.
However, we are not trading in a vacuum. I think there are enough positives for the longs to be happy about but there is also alot of negative sentiment about the 90% profit margins and worry about regulatory risk (thats been around for as long as I can remember but I guess its particularly in the foreground this year because of the election cycle) that will give the shorts their talking points.
Assuming the CC is a net neutral (I dont think it will be but assuming it is for simplicity's sake) I think we may get a small bump up in multiple but for the most part grind sideways till next quarter. And I think the stock will react the same way post next quarter - a small bump up in multiple and grind sideways till the quarter after that. Rinse and repeat.
I dont think there is going to be a knock out blow that propels the shares to $80 within a few weeks/months but I think the story is real here so that as earnings rise and debt decreases there can be some real nice multiple exansion and earnings growth.
Comment by
FIVEBAGGER on Mar 24, 2016 12:06am
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