Not fully re­cov­ered

Finweek English Edition - - Marketplace Simon Says -

Aspen tried to calm mar­ket fears with a vol­un­tary an­nounce­ment but only in­creased the jit­ters. The up­date men­tioned debt lev­els, cur­rency in­flu­ence, the in­fant for­mula sale and pro­jected or­ganic growth. Growth is ex­pected to be be­tween “1% and 4% in its Com­mer­cial Phar­ma­ceu­ti­cals busi­ness for the 2019 fi­nan­cial year” and this raises two is­sues. It’s very ma­ture or­ganic growth, con­sid­er­ing it’s about three­quar­ters of Aspen’s busi­ness. But what re­ally wor­ries the mar­ket is man­age­ment’s lack of HEPS guid­ance. The stock fell fur­ther to un­der R170. A price-to-earn­ings ra­tio (P/E) of 12 times looks cheap, but I con­tinue to stay away.

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