1 million dollar profit, page-45

PE ratio is one way to value a company, but it is pointless if the company doesn't have earnings or stable earnings at present.

Do you think Sinopec used PE valuation to come up with the figure of $1bil? No, they would have used a discounted cashflow analysis of what they anticipated the future cashflows as being.

We can assume that Sinopec probably has a much better idea of what the cashflows will/may be... and they are valuing AED's future cashflows at $400mil (i.e. $2.66 per share). If we add in the remaining cash to the equation that I believe will be $300m, we have a value of $700mil which is $4.66 per share.

And before anyone says.. well they need that cash to develop those cashflows and therefore it can't be counted... this is not the case because impounded in the $1bil valuation will be the cost of extracting those cashflows.

Anyway, I'm sure everyone will disagree with me but it doesn't really matter. I hope the share price gets pounded over the next week because I want to buy another chunk before they confirm the deal by the end of March.

So please please... sell sell sell. AED is rubbish and is worth $0!!!

:-)