Is JKH over valued ?

opfdo · 1 Is JKH over valued ? Wed Jan 18, 2012 8:47 pm

opfdo

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if i say JKH is an overvalued share, will you agree with me ?

Six months EPS ------------3.51 (Basic)
Current Price----------------159.20
PER----------------------------22.67

what do you think????? this is only a one method.

Light of Hope · 2 Re: Is JKH over valued ? Thu Jan 19, 2012 8:49 am

Light of Hope

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yes

market bull · 3 Re: Is JKH over valued ? Thu Jan 19, 2012 9:23 am

market bull

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Yes it is overvalued.it will come down to 120 L

raa · 4 Re: Is JKH over valued ? Thu Jan 19, 2012 10:04 am

raa

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Its funny how brokers would justify JKH having a PE of 30 BECAUSE it is a diversified and as such can afford to trade at an attractive premium to the market..hahaha... what poppycock!

In any case, don't take this PE nonsense to heart. I was also all about the PE's when i entered the markets and everyone would tell me so. I've learnt the hard way that PE's don't mean a dime. They are an interesting relative ratio but many people confuse that for a fundamental valuation. My advice to anyone is never think that PE is a fundamental evaluation of a company.

JKH gives a stable dividend of LKR 3.00 a year. Real wealth is if you bet on them doubling their EPS in the next 2 - 4 years and invest at the low point of this bear market as JKH will split their stock 2 to 1 and maintain their LKR 3.00 dividend. That is real wealth being generated. They just split their stock recently so it will be some time before they do so again depending on how well they perform. This is probably why there is selling pressure, people are cashing out. This is value investing for me...

Another reason to buy JKH which makes sense to me is if you are sincerely bullish about the market. This market cannot "fly" unless JKH also moves up as it is the single biggest share by market cap. So that's your upside ...common sense.

Kumar · 5 Re: Is JKH over valued ? Thu Jan 19, 2012 11:17 am

Kumar

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raa wrote:Its funny how brokers would justify JKH having a PE of 30 BECAUSE it is a diversified and as such can afford to trade at an attractive premium to the market..hahaha... what poppycock!

In any case, don't take this PE nonsense to heart. I was also all about the PE's when i entered the markets and everyone would tell me so. I've learnt the hard way that PE's don't mean a dime. They are an interesting relative ratio but many people confuse that for a fundamental valuation. My advice to anyone is never think that PE is a fundamental evaluation of a company.

JKH gives a stable dividend of LKR 3.00 a year. Real wealth is if you bet on them doubling their EPS in the next 2 - 4 years and invest at the low point of this bear market as JKH will split their stock 2 to 1 and maintain their LKR 3.00 dividend. That is real wealth being generated. They just split their stock recently so it will be some time before they do so again depending on how well they perform. This is probably why there is selling pressure, people are cashing out. This is value investing for me...

Another reason to buy JKH which makes sense to me is if you are sincerely bullish about the market. This market cannot "fly" unless JKH also moves up as it is the single biggest share by market cap. So that's your upside ...common sense.

Points to consider.
Thanks