Thursday, March 3, 2011

Contax profits plunge 18% due to labor costs

Custo com pessoal reduz em 18% lucro da Contax no ano

I hope Contax can renegociate with it's customers to revert that.

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2 comments:

sid said...

I think now earnings are normal for CTAX, which give a P/E of 15. It's too much for me.

cessna said...

Contax is going to pay 100 millions in dividends in 2011, an yield of 6.3%.

Supposing the growth in earnings will be of 5% for the next 10 years and 2% thereafter, and a discount rate of 7%, Contax is worth 2,591 millions (BRL) today. It's an upside of 59% against yesterday market price. My minimum upside to buy is 100%, but I would definetly not sell now, and would buy more for 21,68 a share.

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