So 2007 earnings were 2.11 per share, 2008 guidance by CBRE is around $2 per share (although they suggest range of possible earnings could be somewhat wide). The 4th Q 2007 income was similar to 4Q06, however, last quarter would have been better without one time charges. 4Q 2007 was not bad at all considering debt markets. 2008 does not sound that bad either with earnings expected to be roughly similar to 2007 which was an incredible year. The growth beyond 2008 could be fairly exciting.
Based on the current price of $18.63 the PE ratio is close to 9 based on ttm or forward numbers expected by the company. After the debt markets right themselves, I would see higher earnings in the future.
I my book the P/E ratio for this stock is very favorable at less then 10. I am a buyer here.
Agreed. Lehman loved the financials on the conf. call and will start as a buy soon, my guess with a target of around $30. CBRE has a diversified service platform and continues to effectively penetrate global markets across the board, with increasing market share. Its going nowhere but up IMO, and this is a great price.
$30???? What time frame? With the recession in the US and EC? This is the part of the cycle when businesses contract and/or fail. Who is going to lease or buy? Agreed CBRE is probably best of breed. However, the laws of physics still apply... I see this stock staying put or down for a whil.
All the advantages that CBRE had over the past five years by controlling the investment sale is disappearing. Their property management and leasing groups benefited greatly by the sales guys that controlled the buying process. Without that leverage, expect owners to diversify their management and leasing assignments.
The firm I work for is targeting CBRE leased and managed buildings because their agents are doing a poor job. They have too many properties to properly operate.
Likewise, they are cutting cost across the board. We are talking to many of their brokers who are interested in leaving, especially the former Trammel Crow agents.
IMO 2008 and 2009 are going to be very difficult years for the brokerage firms across the world. Wall Street wants growth. I don't see any growth. In fact, historically commercial brokerage firms have performed poorly as a public company due to the growth problem. CBRE bought themselves a year with the TC acquisition but it was a very bad purchase. The Insignia deal was a grand slam home run. They paid 4 times more for a company that was half as strategic.
I predict that CBRE will make another bad purchase in an effort to show growth. Rumors are that they want to buy Cushman & Wakefield. I hope it happens.
The thing that I find strange is why did the stock went up yesterday after the CC. Here is what I hear: 2008 earnings best case: $2 (lower than 2007) US market going down. UK going down $2b debt Occupancy rate decreasing
These are my conclusions: Currency exchange advantages going away with the recession in the EU countries. Companies will try to re price outsource contracts at lower rates. More vacancies Non salary brokers (full commissioned) will either try to get a base salary (when the deals don't happen as before) or walk.
I have no position on the stock but I think this should be a short. Am I wrong?