Thu, Jul 10, 2014, 2:19 PM EDT - U.S. Markets close in 1 hr 41 mins

Recent

% | $
Quotes you view appear here for quick access.

Beam, Inc. Message Board

  • antiquebern antiquebern Jul 9, 2012 11:23 AM Flag

    testing 50 ema/ should rally

    hopefully..the price action has been a bit troubling lately.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Personally, I think the BEAM price is way too high. I have sold some 57.7 calls for September which I hope to buy back for a small gain. So far I see EPS of $2.30 or $2.40 for the year with growth of perhaps 10% annually. That does not justify a PE of nearly 30 IMO.

      Unfortunately, I don't remember what it is that makes Yahoo report earnings over $5. Clearly if that were accurate and sustainable, our price would be in line with my thoughts about valuation. But as far as I know $2.50 is more like it which makes $50 fairly high.

      Or am I making a mistake here?

      Best, L.

      • 1 Reply to skiplarson98
      • I checked a little further and Yahoo's income sheets show that about $3 of EPS is categorized as discontinued operational margin in the quarter ended Sept 29, 2011 and another $2 worth is also discontinued operations from the previous quarter. Thus the reported EPS for BEAM ought to reduce when earnings come out on 8-2-12 and by almost $2.00 for the last year. Then in November's report another couple of bucks will be dropped bringing annual earnings to a more representative $2 to $2.50 per share.

        My first set of calls expires in Sept. so I now will regard myself as extremely lucky if those shares get called away at $57.50 since I would expect to be able to buy back the same shares for less than $50 in the near future.

        Again, I could be missing something though.

        Best, L.

 

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.