If you look at the chart, you will see that the TOPI has hit an all time high. That brown line is the 200 day sma and you can see that if the gap gets too wide, she always retreats back towards it. It is not a matter of if but when.
Now this. "when" is important for CML as her year end books close at the end of this month. Should this correction happen before then, then her earnings will get hit badly.
One must also remember that investors are expecting at least 80% increase in earnings and anything below that will send her hurtling downwards.
Just to correct this post.
Diluted HEPS increased by 88% in the 1'st half and I quote.
"EPS and HEPS for the financial year ending
30 September 2013 are expected to be considerably higher than 20% when compared to those for the financial year
ended 30 September 2012."
What they mean by "considerably" higher than 20% is debatable as they ALREADY have 88% on their books. Anything lower than this for full year will be a LOSS for 2'nd half and she will tank.
Please correct me here as I'm not sure about the Divi payout that was 75% of the profit.