SCMP
Been buying some SCMP this past week in the 10.90's avg. here is what I like.
1) They have guided for adjusted earnings of $1.35-1.50 in FY 17, which means they are trading at a PE of 7 going foward. I feel FV is around $15.
2) SCMP originally I was very negative about the convertible, but after further review, because of what the convertible does, it gets rid of all that high paying interest in reality that is 6 million a quarter in IE. This makes adjusted earnings look pretty good at a FY 17 level, even if you adjust for the new share count, which is exactly what FY 17 guidance is doing.
3) SCMP is near lows, hence you know me I rather buy on weakness, and SCMP is down from the 17 range not that long ago in my opinion. The RSI is in the 20's right now so definitely oversold.
Conclusion: I like SCMP and will continue to buy on weakness. All is just my opinion, and I could always be wrong though.
