Fooling around, I happened to notice that CPP is on an EV/EBITDA of 1.35. Readers may be aware that I sold out late March at around 62p – due to investigations by FSA. This cast a very big cloud over CPP. CPP currently trades at 51p. Ouch.

The reason I bring it up is that I just looked over some stats for CPP and noticed that they were on an EV/EBITDA of 1.35. Something’s got to give. That something is clearly going to be the EBITDA, but the question is "by how much". Given guidance on what the outcome of all this is, it might – and I emphasise might, because we don’t know at this stage – actually present good value. Without having some revised estimate for EBITDA, it’s just a gamble at this point. An interesting one to watch from the sidelines.

Having said all that, I don’t think I’ll get involved with this share again. I got involved with a scuzzy business model, and paid the price. There’s a lesson in there.

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About mcturra2000

Computer programmer living in Scotland.
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