I think still we have opportunities in the market if you have successful strategy. If I find tortoise plus stocks I will reduce all my holdings and will put all my eggs in few baskets.
When we analyse history of some companies during last 10 years they have improved lot. They have reduced their debt. They have diversified into some lucrative areas. We can see improvement in their balance sheets. They have done some capital investments. Therefore we can have some estimation of their earnings and growth in the medium term and long term.
In short they are better than those days. Therefore we have to pay some premium for some companies. Then what about coming three years? Some will have their biggest growth in their business life.
There should be strong demand for poultry products due to higher tourist arrival, increased economic activities, more middle class population in the coming years.
It is very simple. What we should see in any company is:
Higher earning and higher growth in the future
Higher sales in the future
Strong cash flow in the future
Less debt
Strong balance sheet
Positive working capital
New investments and more employment
New products and new markets
If company has higher ROE it will create more value
If company has higher P/E and if it doesn’t come below 20 there should be specific reason to pay premium price for the stock. Value masters also paying premium for some valuable companies. Growth masters even they will go for P/E ratio over 50. Some are very bullish on hotel stocks and they are ready to pay premium now.
More hotels are opening means more demand for poultry.
Good luck