Thursday, May 24, 2012

F J Benjamin - Estimate of Earnings in FY 2012

This is a post aimed at estimating the earnings of F J Benjamin in the financial year 2011 to 2012.

A link to F J Benjamin's web-site is below

By my estimates, FJB will earn around 2.61 cents per share for the year FY 2011 /2012.

This is based on the current earnings for the first three quarters of their year as well as an assessment of what could be the earnings for their last quarter.

Based on past track record, they will announce a dividend of 2 cents per share, payable in November.

Their closing price yesterday was around 32 cents per share.

At that price, the expected yield is 6.25%.

In the last two years the price has hit a bottom of around 27 cents.

The peak has been 39 cents which was just before it went ex-dividend.

The suggestion would be to establish a small position any time during market weakness from now till July 1st week.

The results will be announced in July 1st week.

The first position could be at 32, a top up can be looked at 29 cents and further at 27 cents.

The get out price would be 36, 38 and 40 cents.

Full Disclosure : I am long F J Benjamin

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