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Fair & Under Value Opportunities

Discussion in 'Shares' started by anthwilcox, 28th Jun, 2010.

  1. anthwilcox

    anthwilcox New Member

    Joined:
    2nd May, 2010
    Posts:
    3
    Location:
    QLD
    Looking for current opportunities within the Australian Market. A place to submit and garner ideas for the benefit of those who participate.
     
  2. anthwilcox

    anthwilcox New Member

    Joined:
    2nd May, 2010
    Posts:
    3
    Location:
    QLD
    SRV

    To kick off discussion, I'll put forward Servcorp (SRV) which has had a 5 year mean return on equity of 22.7%. The current equity per share of SRV is around $1.84, which puts its Bond valuation ([ROE/required Return]*Equity per share) at around $2.80 @ a required rate of 15%.

    This bond style valuation does not take into account any growth from retained profits.

    I think this business has the potential to be much larger in 10 years time than it is today.

    Your thoughts are welcome...