Look for illusions

There are many traps and misnomers abound in equities and not all them are in stocks which are considered sexy and exciting.

Many companies raised money in 2020. This means capital structures have changed.

In one example, in 14 months, the stock price of Australian listed Oil Search (OSH.ASX) has nearly halved but the company is trading at a higher EV/EBITDA multiple.

See my mini story in the graphic below.

February 15, 2021
by Rob Zdravevski
rob@karriasset.com.au