I have just uploaded a report on Ioicorp here. Note that I do not always agree with research analysts, but that I do recognise the role they play in affecting stock prices. These reports are also good exercises in sharpening the mind and SHOULD NOT be taken at face value.
Always ask yourself “why why why?” and remember to dig deeper. Here are some questions you may want to bear in mind when going through this:
1. Why do they like the company even though its earnings came in lower than expected, and its PE is already close to 19x?
2. Why do they think that CPO prices will stay at an all time high in 2007/2008?
3. Are there any other reasons to buy into this company other than just to get exposure to rising crude prices? Does the company have any other businesses which may complicate their balance sheet?
Happy trading all!
No comments yet.