Well, if pre-tax and EBITDAR keep growing anything like they have the past 3 quarters then your 13 p/e is probably a little too low. They did:
Q1 from -12MM to +200k
And this was before Oil dropped 50%+
You should look at price to book comparisons as well. PTRY, MUSA, IMKTA, CASY all trade at over 2x Book value while TA trades at exactly book value. This most likely has to do with lower net margins for TA; however, TA's margins have been trending up significantly.
Just came across this company. Seems from a cursory search that doctors rave about Exparel. Is this a potential buyout target? Seems like they might have a blockbuster drug on hand. What competitive threats do they have on the horizon?
hi there - sorry about not getting back to you. i was traveling overseas. Unfortunately i didn't add to my GPRC when it was down around $2.6 when I was away but the chart still looks great. Continues to stair step higher and higher. A breakout is coming soon.
He has actually been pretty spot on with his bigger picture call for the market the past 18 months. He calls for corrections from time to time but if you follow him closely he still thinks this is a longer term bull market and has been saying so since s&p 1200 at a time when most were bearish
Nothing is guaranteed in the markets...ever. However, the on balance volume (OBV) in this stock is absolutely a thing of beauty. This stock is stair stepping higher on much heavier up volume vs down volume - this is much clearer on the weekly charts (just use stockcharts). Since the bottom was hit earlier this year - after runs up, the pullbacks started off sharper but they have been getting shallower and shallower.
Since the highs of mid/late October, the stock has traded its entire float and yet here it stands right around those old highs. It seems that stronger hands are holding this stock now. I think there is a very good chance that we see a significant move up fairly soon.
I mentioned we would see a trading range between 2.8ish and 3.2ish. That's what I think is going on until it finally breaks up. Also, look at recent action in GURE, ONP, SORL, and some other Chinese small caps. That are all making their way higher but with wild swings.
You too. Remember, this still is only worth 3 times earnings. That's the underlying theme here. A valuation of 5 times earnings isn't exactly outlandish.
We're up near the old highs again and more sellers cam in. Remember the more tests of the prior high that we get the weaker the high will be and ultimately it will give way to much higher prices as the sellers dry up and only buyers are left.
Today was a prime example of what I was referring to above. I think we see a few more days of fluctuations like these. Remember the more tests of the prior high that we get the weaker the high will be and ultimately it will give way to higher prices as the sellers dry up and only buyers are left.
My target is $4.50 within 3 months. I won't share why this is the target price as its proprietary. This will be a rough double from the $2.30 level I mentioned was a buy.
Valuation at $4.50 would be roughly 3.7 PE or 2.5 PE after backing out cash. If we get there I'll re-assess upside targets longer term. If we see people coming back to China stocks in droves and GPRC back on the growth path then longer term targets could be a good deal higher.
I'd love to see a drop back to $2.5 but probably some consolidation around here as buyers from the prior highs look to get out. May be range bound between $2.8 and $3.2 for several days is my guess. I'd be careful trading too much though. The float is quite small and valuation is dirt cheap so there is a chance you could miss out on a big move higher. My target is $4.5 in the near term (1 to 3months)
Anyone read this? Good background checks on GPRC's suppliers.
Valuation should be a lot higher. Really no reason for a 2 p/e. Even a low 4 p/e means this is over $5. If this is a US based company it would be at $15 to $20.
Another good article...again the point is that you should be using this current weakness in the stock to buy. That's what I have been doing because the longer term future of GPRC is very bright and the stock is trading at 2X earnings:
"Surendra Borad, second from left above, who chairs the plastics committee of the Bureau of International Recycling, told the organisation’s autumn convention in Warsaw that although Green Fence had “led to widespread confusion and indecisiveness in the plastics scrap trade”, it would be for the greater good of all parties in the long term.
Borad acknowledged immediate difficulties over the Chinese rejecting poorer-quality imports:
Storage and logistical problems
EU exports of plastic scrap to China down 16% (H1 2013 compared to H1 2012)
EU exports to Hong Kong down 26% (same period)
German exports to China down 24%
US exports down 7%
But he said he was sure all economies would gain eventually: “Ultimately in any industry, quality is the precondition for sustainability. Our recycling business will survive and grow for a long time only if the quality is stressed. [Green Fence] is undoubtedly a blessing in disguise.”"