Choices, Choices

Finweek English Edition - - MARKETPLACE SIMON SAYS -

The stock listed in Fe­bru­ary at 485c. It now trades be­low that price af­ter an ini­tial move higher to 535c. Re­sults show head­line earn­ings per share (HEPS) of 12.7c. As the sec­ond half of the year is typ­i­cally stronger, at a stretch the com­pany may do 30c HEPS for the full year. This puts it on a for­ward price-to-earn­ings ra­tio (P/E) of around 15. It is thus fairly val­ued, but Pre­mier’s fo­cus re­mains ex­pan­sion – a new quota to fish horse mack­erel com­ing on line in the sec­ond half and its longer term aim be­ing to in­crease abalone pro­duc­tion markedly. The com­pany seems on track but now that we have three fish­ing stocks to in­vest into, the mar­ket is very much tak­ing a wait-and-see ap­proach. Fur­ther price weak­ness is pos­si­ble.

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