Erinaceous Group - High Growth Property Services Co

ERG still hitting new highs...Investec forecast 19.19p EPS for December 2005. And the consensus from 5 covering analysts is 17.83p EPS.

So ERG is trading on a conservative P/E of only just over 10. Best wishes to all here for a happy and healthy 2005 - it should be a prosperous one too for ERG holders, as a P/E of only 13 on cautious consensus forecasts would see a price of 230p, whilst the same on Investec's estimates would see 250p or more.

But given the cost savings and cross-selling opportunities from the HPS deal, and the ambitious management, IMO we could see 300p if all goes well. During the year, looking ahead, analysts will focus on a possible 23p-24p EPS for 2006, i.e a P/E of around 13 for 2006 at 300p....