One Caribbean is no longer a recommended Buy Rated currently based on the jump to $25 per share this week, but seems to be a hold based on the reading of the Trinidad Stock market where it looks as if it should rise some more.
Since July 5 last year when IC Insider gave the stock in the Buy Rated category it has moved up 43 percent and now enjoys a PE ratio of 17.7 compared with 12.6 last year July.
Elsewhere Trinidad Cement slipped to $1.90 making it more attractive, even as there is talk of major changes in directorship. Massy Group continues its slow gain as well as Republic Bank but they as well as a number of others remain attractively priced for good gains in the period ahead as they are undervalued.
Why PE?| The price earnings ratio is the most popular measure investors use to compare and determine stocks values. It is computed by dividing the price of a stock by the earnings per share. It allows investors to compare the value of one company with others, in order to determine which ones are to be bought, sold or held. When the market moves markedly away from the norm it is usually time for investors to move, the PE ratio is a good tool to measure such extremes.
In looking at good buying opportunities the crude measure is to buy those stocks with low PEs compared to the market or to stocks in the same sector.
[…] One Caribbean Media out of Trinidad is reporting flat profit of $17 million, for the first quarter of this year, from a fall in revenues of $116.7 million compared with $121 million in 2014.The results were helped by slightly lower administrative cost of $18.9 million versus $19.8 million in 2014 and a small decline in corporate taxes. The results translates to earnings per share of 24 cents. For 2014 the company had earnings of $1.23 per share. For 2015 earnings should remain at the 2014 level. The company that publishes newspapers and operates TV and radio stations in Trinidad, has equity capital of $686 million with cash funds of $128 million and total liabilities of $145 million. One Caribbean is going to continue to face challenges for a while, with tightness and slow growth in Trinidad, made worse by the sharp fall off in the price of oil, one of the country’s main products. The stock was once on the BUY RATED list but was removed after it appreciated fully in 2013. The stock last traded on the Trinidad and Tobago Exchange at $22.30 giving it a pretty rich PE of 18. […]