CSM cosmo gold limited

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Currently unlisted. Proposed listing date: TBA
  1. 3,698 Posts.
    2006 2007 2008 2009
    EPS 7.3 14.2 30.9 36.2

    the share price is equivalent to what you would expect from bank interest
    Price = $2.35
    if you got .142 from the bank at 6 percent you would have to have $2.37 in an account
    So price is equivalent to what you expect if you put the money into a bank account.
    but say you go one year ahead - eps is .309
    divide that by bank insterest again
    and the stock is worth $5.15
    DOUBLE!!!!
    The growth rate for this stock is 37%
    It is not being factored in at all

    Denty....
    What you are seeing in the charts is investors waking up to the massive growth potential in this stock
    '09 .36
    .36/.06 = $6.00... Get it.
    Sure a bank account would be safer so there has to be a discount for this
    But you have massive growth here
    so lets just discount for risk of not making this profit say by 30% , which is a lot
    that brings an earning figure of .237
    that makes the stock worth
    .237/.06 = $3.96
    discount it down by 50% to .206
    and you get $3.43
    still very cheap
    Ok discount it down to 70% and you get eps for '08 to .18
    and the stock is still worth $3.02
    Amazing!
    Tell where would you prefer to put your money, in the bank or in this stock.
    It's a no brainer as far as I can see.
    Fasten your seatbelt guys, we are going for a run next week, takeover or no takeover.
 
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Currently unlisted public company.

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