Trifast Share Discussion Threads

[mike740] 16/6/2015 14:11

And its got the 5 years ratio built in to the formula above.

[mike740] 16/6/2015 14:10

Jim Slaters Formula, already knew it but just checked it up on Wiki......

Out of all of Slater’s criteria, the Price Earnings Growth (PEG) ratio is the most famous.

The PEG is a means of identifying shares where brokers are forecasting high earnings growth, but which are currently valued at a price that is low relative to their forecast earnings.

The PEG tells us the price of the stock relative to its earnings growth rate. It is calculated by dividing its prospective P/E ratio by the estimated future growth rate in the Earnings Per Share (EPS) of the company.

Using our previous example, a company with a share price of 100p and earnings per share of 10p has a P/E ratio of 100/5 = 20

Now, for example, say the brokers’ forecast earnings growth rate for this company is 20%, its PEG is calculated as

PEG = P/E ratio divided by estimated future growth rate

So in this example, the PEG would be calculated as P/E 20 divided by growth rate of 20, gives PEG = 1

According to Slater, a PEG of 1 means that this company is fairly valued. A PEG greater than one means that the market is paying too much for future earnings growth, whilst a PEG of below one suggests the company’s share price is undervalued.

Slater looks to invest in companies that are undervalued, ie those with a PEG less than 1, and ideally below 0.75.

[cockneyrebel] 16/6/2015 13:59

The winker troll has turned up I see - but filtered thankfully :-)

CR

[cockneyrebel] 16/6/2015 13:08

Trifast (Buy)
Outperformance on all levels
TRI results were ahead of our top of the range forecasts on all key metrics. This performance should send a clear message to the market that this is no longer a business in recovery, but one with a promising, long-term growth story. With upgrades to 2016E and 2017E, scope for additional inorganic growth and further penetration of the existing client base, we increase our price target to 150p from 140p and reiterate our Buy recommendation.

[cockneyrebel] 16/6/2015 11:54

If the consensus eps forecasts have risen by 5% that's a forecast of 9p for the current year. If you took an average of the growth over the past 5 years of continuous growth you're looking at 20%+

That's a PEG of 0.45 based on what look like conservative forecasts imo. A rare old find imo, seeing a PEG below 1 is regarded good value and a PE of 0.75 a strong buy under Slater's PEG valuation.

All imo

CR

[cockneyrebel] 16/6/2015 11:37

That 187k buy took most or all of the available stock at that level imo. Added myself today and in profit on those already :-)

CR

[shanklin] 16/6/2015 11:07

Excellent interview. (post 2241).

[robinnicolson] 16/6/2015 11:01

N+1 Singer:

"Trifast has reported strong growth for FY15, with adjusted PBT and diluted EPS 5% ahead of estimates. A 50% increase in the dividend has been proposed, 11% ahead of our expectations. Momentum remains strong and management is confident of a further year of progress. We anticipate increasing our forecast for adjusted PBT by c.5% to reflect the stronger progress to date. The valuation remains undemanding and we reiterate our Buy recommendation."

[robinnicolson] 16/6/2015 10:48

Malcolm Diamond talking about the results here:

hxxp://brrmedia.co.uk/event/139061/malcolm-diamond-mbe-executive-chairman

[steeplejack] 16/6/2015 10:05

With bond markets wobbling under incipient rate rises in the U.S. and Europe labouring under the Grexit,I don't think that stock specifics are taking centre stage just now.The company alludes to macro influences outside its control and,of course,management changes add a touch of uncertainty.For now,the market might be tempted to believe that this is "as good as it gets".I remain a holder but expect the rating to stay undemanding over the Summer in this ominous macro climate.

[cockneyrebel] 16/6/2015 09:40

cheers music1

I added today Shanklin - wish I'd bought a month earlier but that bowl on the chart hadn't shown up then.

CR

[music1] 16/6/2015 09:05

Finncap have raised target to 152p from 137p and maintained Buy rating.

[shanklin] 16/6/2015 08:29

Sheesh, opened a position at just under 124. Should have bought more on that dip to 121/122.

[jon123] 16/6/2015 08:24

which ever way u word it edged out, retired, left for personal reasons it went down hill n yes I agree the chairman staying is a sign that's y I'm not selling just yet I've been here since 2007 so a few more months ain't going to worry me

[superstardj] 16/6/2015 08:12

jon123 - not quite correct. He and the present Chairman were edged out and then it went to pot under Steve Auld. Chairman staying is a good sign.

[asusasus] 16/6/2015 08:11

Incredible set of results and it tanks. Seen it so many times. Buy on rumour sell on news. I will be sticking to that in future. Good chance to add for those looking to hold longer than a week!

[robinnicolson] 16/6/2015 08:02

CR, they have net debt of £13.42 million

[jon123] 16/6/2015 07:51

more of a concern is the ceo stepping down last time he retired the company went to pot

[cockneyrebel] 16/6/2015 07:50

Net cash has risen from £2m to £13.5m too.

CR