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.
CSM
cosmo gold limited
you might be intrested in this info, page-2
Currently unlisted. Proposed listing date: TBA