GTP 0.00% 12.0¢ great southern limited

one dollar today, page-10

  1. 198 Posts.
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    There's something very fundamentally flawed about how you arrive at 64c :)

    In particular, what assumptions have you attributed into that mysterious number "10" ? Where did it come from ?

    Do you mean to tell me that the value of any company is just a factor of 10 times its EPS ? :) ... why not 5 or 2 or 20 ?

    How do you know that 64c doesn't already more than cover all of GTP's FY2008 losses ?

    What about for FY2009 ?

    Heh.

    Here's a hint,

    If you had two companies:

    Company "A" made $20m in FY2008.

    Company "B" also made $20m in FY2008.

    Company "A" has 1,000,000 shares on issue.

    Company "B" has twice the shares on issue at 2,000,000.

    This means Company "A" has a $20 e/s.

    And Company "B" has a $10 e/s. Do you mean to tell me that your conclusion would be that Company A is "worth" more than Company B ??

    Or that by your calculation, Company A and B's fair values are $200 and $100 respectively ?

    Haha.

    You guys have a misconceived idea of valuing companies.
 
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