I may have come up with a price target a little prematurely, given that I still have to study the business a little more.
However, at first glance it appears CFCIH has been seriously underperforming; given the level of assets under their command. With a more focused management under the ambit of Liberty insurance, I expect this to change. And, I can bet you a lot of heads are likely to roll to get the business into the right shape.
The other aspect is technical. I do not expect that there will be too much liquidity on the counter, hence share price may fluctuate more than one might expect.
Aguytrying wrote:Given eps for insurance is 0.54, with a p/e of 10 (insurance companies tend to have even lower p/e's) thats 5.40/- share price. why would you buy at 5 to 6 bob. what are you seeing.