GP here - Origin Energy has had rocky price action prior to corona and should uncertainty continue or exasperate then we may have a great entry offered in a solid business.
The company netted after tax $1.2b in ‘19. With a steady increase year on year in ‘19 revenue was $14.7b. Nearly netting 10%. It’s currently valued by the market at $10.67b. In 2019 it had $25.7b of assets on the books and $12.6b of liabilities. $13b of equity.
$10.67b now seems undervalued let alone with what opportunities could be afforded soon.
Limits left split wide between $2.30 and $0.95 or buy then on confirmed support with stop below considerate of risk.
Going off the companies books I believe Origin is worth double what the market is offering now. That puts it around $12. Lining up near top target of $14.80.
Taking profit along the way that puts the averaged trade risk return to be 1:5.2 not including dividends.
The company netted after tax $1.2b in ‘19. With a steady increase year on year in ‘19 revenue was $14.7b. Nearly netting 10%. It’s currently valued by the market at $10.67b. In 2019 it had $25.7b of assets on the books and $12.6b of liabilities. $13b of equity.
$10.67b now seems undervalued let alone with what opportunities could be afforded soon.
Limits left split wide between $2.30 and $0.95 or buy then on confirmed support with stop below considerate of risk.
Going off the companies books I believe Origin is worth double what the market is offering now. That puts it around $12. Lining up near top target of $14.80.
Taking profit along the way that puts the averaged trade risk return to be 1:5.2 not including dividends.
