First off, it's an incredible company. From an investment point of view, it depends on what your hurdle rate is. Mine is 15%, so even at this price, I don't think CSU will pass. Imagine a base case where there is no multiple expansion, and CSU will continue compounding at 10 to 11% based on earnings. Then that's what you'll earn. I'm creating a checklist for software companies. Hope to send it out within the next 2 weeks.
Agree, TEA is worth an active monitoring. Beyond usual key metrics, TEA ticks many boxes. WorkPac is a strategic move to channel skilled "blue collars" & avoid the "empty bus" (& pay penalties). WorkPac price tag is shockingly low with a "scrip" hedge: WorkPac sellers are betting their own exit recovery on TEA share price performance. The shareholder profile is extremely bullish. So far, so good. Let's see on Feb'24 their HY performances & how they're digesting WorkPac. And watch ASX 300 quartely rebalance likely on next Mar'06 (index inclusion?). To be cont'd ...
Yes, TEA appears to meet the 3 key quantitative requirements for inclusion : market cap (pass), liquidity & free float (likely pass). TEA is getting too big to be ignored.
What’s your opinion of $CSU at C$2,300?
First off, it's an incredible company. From an investment point of view, it depends on what your hurdle rate is. Mine is 15%, so even at this price, I don't think CSU will pass. Imagine a base case where there is no multiple expansion, and CSU will continue compounding at 10 to 11% based on earnings. Then that's what you'll earn. I'm creating a checklist for software companies. Hope to send it out within the next 2 weeks.
Agree, TEA is worth an active monitoring. Beyond usual key metrics, TEA ticks many boxes. WorkPac is a strategic move to channel skilled "blue collars" & avoid the "empty bus" (& pay penalties). WorkPac price tag is shockingly low with a "scrip" hedge: WorkPac sellers are betting their own exit recovery on TEA share price performance. The shareholder profile is extremely bullish. So far, so good. Let's see on Feb'24 their HY performances & how they're digesting WorkPac. And watch ASX 300 quartely rebalance likely on next Mar'06 (index inclusion?). To be cont'd ...
Thank you for the insights! Waiting for the earnings update. Does TEA meet all the requirements for a possible index inclusion?
Yes, TEA appears to meet the 3 key quantitative requirements for inclusion : market cap (pass), liquidity & free float (likely pass). TEA is getting too big to be ignored.