I had a quick look at Texchem shares. The PE is 7.7 and the dividend yield is 5.3%. It seems like a solid, well diversified business.

Why don't the markets like it?

that's the danger with 'quick looks'....

both the stats are based on past quarterlies... which used to be good.



as can be seen, the pe is based on texchem recording eps of 30 sen for its trailing 4 quarters eps (see below)



which is boosted by the two eps highlighted in yellow (this is when Texchem used to be a boom boom stock)

see inside



but the latest 2 quarter, Texchem is rather poor. The latest eps is only 1.99 sen. ( which is a massive worry because if you look at the past history, Texchem's annual profits are really, really poor. A lot of years in losses.



hence, the worry or the risk is on an annualised basis (ie 1.99 x 4), Texchem yearly eps could fall to just a mere 8 sen. hence current price seems risky.

which is why the market no 'like' the stock.



This post has been edited by Boon3: Nov 4 2022, 05:47 PM