Straco closed this week at 76.5 cts which is trading 18.5x PE and 14.5x PE backing out it's cash.
For Fy 2014 Straco net profit increase by 25% & 50%:
Net profit increase by 25%:
It is price at 14.6x PE and 11.5x PE backing out it's cash.
Dividend pay out of 50% = 2.5 cts, yield = 3.2%
Net profit increase by 50%:
It is price at 12.2x PE and 9.7x PE backing out it's cash.
Dividend pay out of 50% = 3 cts, yield = 3.9%
As long as Straco able to grow it's revenue and net profit yearly, increase it's dividend it's share price will follow. Straco share price seen fairly price today but will becomes cheap tomorrow.
My illustration above posted on 5th July 2014 shows Straco profit increase by just 25%, it is still price at 14.6x PE FY2014 & 11.5x PE FY2014 back out it's cash - share price at 76.5 cts. Dividend of 2.5 cts, yield = 3.2% is still quite attractive.
If we believe Straco can increase it's profit by more than 25%, Straco definitely has much to offer. To ripe the full potential of Straco we should focus on the grow potential rather than on share price increase. Share price will eventually catch-up with company performance.
I strongly believe Straco has much to offer. Seem over price today but tomorrow it will become cheap. Reason: Profit grow will soon catch-up. Straco is truly a gem.