What price the SP on a CAT binding ANN given FBR have no earnings yet or will have To at least FY 19 if not FY 20
Lot factored in here in my view if it’s off say a 15-16 sp maybe a CAT Binding ANN 20-25 ?
The problem is a lot of people have factored in CAT will go binding by June 30
The market looks forwards not back if you think about it what justifies the current cap of FBR on what is concrete so far ?
Some could say it’s over valued or some could say like I feel that a CAT ANN underpins earnings growth so if you strongly believe CAT will go binding then under 20 is probably a gift
The risk is if they don’t we lose 70 per cent back to 5-6 cents
It’s a decent risk if your not free carried like most of us are
Massive risk if you are underwater of the 20s buy some would say financial suicide type risk
Life without risk tho is no life at all
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