My focus on today's FY release will be on EPS, cashflow and M&A plans. I need to see how the cashflow bucket will be loaded going forward with the corporate bond payouts coming up in 2015 and 2016. Also the debt pay back ratio is key to confirm how fast the debt free phase will be achieved.
This thing is still a cashcow as along as it can maintain a flowing cashflow bucket.
If the H1 momentum was replicated in H2 then FY should read
EPS = 0.56
DPS = 70% of EPS i.e. 0.56*70% = 39cts. As per the rumour mill it's speculated 85% of free cashflow will be paid as div which would mean 47cts!?
P/E = 22.95 at a price of 12.85
If P/E remains at the lofty 29 - 30 levels then with an EPS of 0.56 the price will scale above 16/- while pricing the future DPS spike.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!