Sydney Airport is better than it looks

Forget the figures you see on CommSec. Here’s the real Sydney Airport. Sydney Airport is a great example of how investing opportunities come about. Take a look at your broker’s ‘Company research’ page for the stock. It doesn’t matter if you use CommSec, Westpac or any of the other big names, they all fall for the same trick. Judging by its financial ratios alone, no-one in their right mind would look twice – or even once – at Australia’s largest airport. Earnings per share are half what the company pays in dividends, revenue is lower today than it was in 2005, and the stock sports a price-earnings ratio of 56. As far as investments go, Sydney Airport looks about as attractive as a blob fish. All of those numbers, though, are wrong. Most brokers or financial data providers – such as CommSec and Google Finance – don’t distinguish between different accounting policies. They just take the reported statutory figures in the annual report and call it a day. This is why it’s important to dig deeper. Read full article: (VIEW LINK)