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General Category => Shares => Topic started by: Hamster on January 26, 2016, 10:08:14 am

Title: Why is Curro taking such a beating?
Post by: Hamster on January 26, 2016, 10:08:14 am: I realise everything is taking a beating on the JSE but from R58 to R44 in less than a month....for a company building schools?!

What am I missing?
Title: Re: Why is Curro taking such a beating?
Post by: Mr_Dividend on January 26, 2016, 10:13:45 am: We don't need no education....

;)
Title: Re: Why is Curro taking such a beating?
Post by: Moonraker on January 26, 2016, 10:36:05 am: Was overpriced.
Dilution due to constant rights issues.
~~Brexit jitters (maybe).~~ Sorry was thinking of CCO
Switching to more reasonably valued AdVTech.

Nothing to worry about, but ADH would be my preferred stock.
Title: Re: Why is Curro taking such a beating?
Post by: Moonraker on February 06, 2016, 01:52:58 pm: Market Watch: Top of class Curro (http://www.financialmail.co.za/opinion/columnists/2016/02/04/market-watch-top-of-class)

Basically what I said in my previous post.
Title: Re: Why is Curro taking such a beating?
Post by: Moonraker on February 07, 2016, 05:14:51 pm: Quote from: Moonraker on February 06, 2016, 01:52:58 pm
Market Watch: Top of class Curro (http://www.financialmail.co.za/opinion/columnists/2016/02/04/market-watch-top-of-class)

Basically what I said in my previous post.

The P/E of ADH will go up a lot due to the recent rights issue. Will have to wait for a trading update to get the forward P/E
Title: Re: Why is Curro taking such a beating?
Post by: Mr_Dividend on July 14, 2016, 04:39:59 pm: Added a bit of curro @ R38 - looking to try sell at R45 or bail at R35 in the next couple of months. HEPS growth is great, PE is still high - but obviously, has been higher. Will have to see.
Title: Re: Why is Curro taking such a beating?
Post by: dividendtycoon on July 15, 2016, 09:32:33 am: I think it is down because the risk/reward ratio was wrong. With such a high P/E ratio what is the upside, in the short term anyway? The downside though could be high. Same probably applies to Naspers, although I have not done much research on either, so dont take my advice, these are just my thoughts.

On the other hand, I have just had an experience with Gooderson, a hotel stock nobody wanted, you could have bought as much as you wanted at 39c up until tuesday this week. It had a NAV of 154c and PE of 11 at 39c. It is now 60c on a plan to delist at 65c. Admittedly this stock caused me some headaches, and I just wrote about it in my blog if you interested http://www.dividendtycoon.com/blog/2016/07/15/my-hotels-are-almost-sold-a-lucky-escape-for-this-dividend-tycoon/
The point though is that what was there to loose for the risk at 39c, and what was the upside? The best stocks are not always good investments and the worst are not always bad. I would encourage anybody to read Howard Marks book on investing in this regard.