Dear Reader ,
A very interesting few weeks and months ahead .Especially as two of my main shares ( MET & RUR ) which are due to report good news . Fingers crossed that our educated guesswork has been correct .
I shall also add that at this point in time The Oxus gold shares are stunningly undervalued . Despite being 3x , the bottom point . I reiterate my strong buy on this one , under 2p is excellent value . Even though the wait may be until the end of 2014 .
The market has been pretty stable and the target of 7200 , by the end of the year is still apt . Recommendation is to buy in the dips ,whenever possible . Currently 6500 + . I would target 6300 , as a safe long term option in late June .
Margins are higher now than at any point in the recovery, when some observers were already pointing to the higher margins as an unsustainable trend. Eventually, they argued, the margins would have to revert to the mean and put pressure on earnings, in the absence of strong sales growth.
It hasn’t happened yet, which is at least one reason why valuations still look reasonable. The simple PE ratio based on earnings for next year is at about 15.08. Near the 2009 bottom it was as low as 10, and at the 2000 top it was 32.
On material stocks and supermarkets , looking extremely good long term value .
Happy trading and may your prophet go with you .
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