By David Press on
6/15/2010 10:10 PM
With the end of financial year upon us, many will be looking to make tax loss effective sales of their under performing holdings. This is often an opportunity for the value investor to find some real bargains. Clarius Group (CND-ASX) may very well be one such play to consider given the stock has dropped around 25% from its early 2010 prices.
Clarius Group, like other cyclical stocks, were always going to get a beating when the market crashed in late 2008 and early 2009. They have again been hurt by the uncertainty Europe's debt issues have created and are now offering great value to the investor who believes in the overall world economic recovery.
On a financial basis they continue to look cheap. Based on average earnings from the last five years, their Price Earnings Ratio is an average of 8.38 (this takes into account recent raisings and complete dilution). I prefer the use of at least a 5 year average for earnings based indicators in order to smooth...