Gruppo Sol Spa part 3: No decision yet –> Watchlist
However, we still have the open question: Buy or don’t buy ?
To a large extent, I share JanHendriks comment that below book or at a single digit P/E the company would be an outright buy.
At the current 4 EUR per share, the company trades at 1.06 x book and 11.4 trailing P/E, the stock is neither really cheap nor expensive.
Additionally, I would still like to understand better the 2011 result with regard to the two segments, industrial gases and homecare.
For the time being, I will not buy the shares but put it onto my watchlist.
I will buy the shares if one of the two following conditions will be fullfilled:
1) either, the price goes down to somewhere below EUR 3.50 per share
2) we see a still strong profit growth and stable margins in the homecare segment in the upcoming annual report.