Q: Hi Peter and Team,
What is the long term value of CCL.B? With the recent quick rise in the stock price tied to decent earnings, it looks like its at the top of the range it has been trading in since about 2016.... I think we've been holding this in the 5i model portfolio since 2010 which is great.
I am wondering if we have realized most of the potential here and this money could be redirected elsewhere that has a higher differential between the current price and the long term value?
What is the long term value of CCL.B? With the recent quick rise in the stock price tied to decent earnings, it looks like its at the top of the range it has been trading in since about 2016.... I think we've been holding this in the 5i model portfolio since 2010 which is great.
I am wondering if we have realized most of the potential here and this money could be redirected elsewhere that has a higher differential between the current price and the long term value?
5i Research Answer:
It is a tough call. We have been patient, and ready to exit, and then the stock reports strong results and rises the most in eight years. At 17X earnings, with a decent dividend and now renewed momentum, we would like to give it a bit of space now to run. Its multiple is on the low end of its historical range, and consensus calls for 10%+ growth this year. One quarter does not make a trend, but with some recent broker upgrades we think it buys itself some more time to perform.