||Last Updated: Aug 7th, 2016 - 22:22:32
Caribbean Cement Company’s (CCC) turnaround is cast in concrete; the company is projected to clear its accumulated losses in the third quarter of 2017 and be well on its way to paying a dividend. The debt due to parent was fully paid during Q2’16.
Earnings per share (EPS) for financial year 2016 and 2017 are projected at $3.20 and $4.08 respectively. Using a price earnings ratio (P/E) of 10 the stock should be trading at $32.00 instead of the current price of $25.99, in fact a P/E of 15 is more realistic because it is a turnaround story, making for a potential stock price between $48.00 and $60.00.
A mere three years ago, August 5, 2013 the stock traded at $1.00 coming from a low of $0.60 in May of that year.
CCC stock price appreciated by 690% in 2015 and will likely gain 150% for 2016.
Efficient Market Hypothesis (EMH) states that asset prices fully reflect all available information therefore it is impossible to beat the market. It is not about information it is how the information is interpreted.
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