I was puzzled by Etika share price for past two days, it keep going up for no apparent reason. The answer is out now. Templeton fund is subscribing to the convertible bond that the company issues. The conversion price is 1.05 which is higher than current share price. However, if you look at the long term and potential of the company, it is very cheap. The company is trading at prospective PE of 9. If the earning does grow strongly, my estimate that it is going to worth a lot more.
That's the exciting part of investing in small cap. It is possible to get multi bagger faster if the company is able to grow strongly.
Tuesday, 3 August 2010
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment