Q: Peter and His Wonder Team
CET is crashing...is it 1st Q. results, there long term fundamentals, the energy sector...or all three. Your opinion please! Thank you...you are always helpful.
CET is crashing...is it 1st Q. results, there long term fundamentals, the energy sector...or all three. Your opinion please! Thank you...you are always helpful.
5i Research Answer:
Q1 results were a bit miss (1.6c vs 5c expected). Debt is very high (5X cash flow); the sector is struggling a bit. It is also hard these days for small caps to get much attention, with a lot of worries in the market. CET is VERY cheap at 3X earnings, but the debt would be a concern with us, and the momentum is just too negative for us to endorse it.