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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: