what a great stock, page-36

ok just to show how far this has been pumped ive done an intrinsic value of IRI which is roger montgomerys skaffold programme. by the way all the smart money is out of this they got out in the 70's now what is left is a game of musical chairs.

it would be better if management did not pay a dividend so that money can be better used in the business.

equity: $29,233,000
shares: 168m
eqps: 0.174c
reported npat: $9,035,000
reported dividends:$7,512,000
payout ratio:67%
previous equity:$27,357,000
roe: 31%
selected roe: 30%
required rate:10%
table 1 = 3.0
table 2 = 7.225



intrinsic value

0.174 x 3 = 0.52c...0.52 x 0.67 payout ratio= $0.349

7.225 x 0.52 = 3.77...0.52 x 0.33 = $0.172

0.349 + 0.172 = 0.52c intrinsic value

i undertstand it has good prospects with no debt but all the potential growth is going out the door in dividends when it should be retained as it is producing 30% roe with that equity so shareholders should leave the money in the company then you will get the sp growth plus a premium this is not what has happened.

for the details on intrinsic value & dividends check out roger montgomerys book value able.

imo IRI will settle back around its IV 52c to about 65c

ILG