I hope Contax can renegociate with it's customers to revert that.
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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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2 comments:
I think now earnings are normal for CTAX, which give a P/E of 15. It's too much for me.
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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We encourage your feedback and we will take your comments into serious consideration. However, you must be warned that any comment that does not follow the blog philosophy (Value Investing and Behavioural Finance) will be promptly removed.