monday 4.5c plus for sure, page-10

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   whitebeachlover

   286 Posts.

   28/02/09

   22:16

   Post #: 4852644

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   email from our mate again.
   
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   Hi,
   
   Yes the decimal point was out, you could have corrected it for me :)
   
   
   Here is the post
   
   The point is, which ever way you value it, it comes out way higher than the current SP
   
   

   Earnings for 6 months equal to 0.87c/share.
   

   Cash backing alone is AUD214.7mln/1608mln = 13.35c/share, which
   does not include the property portfolio which would easily cover any
   debt.
   

   NTA of 51c cents per share, only down 21% yet what has the SP
   currently factored? Comparisons in the market have the SP at least 25%
   of NTA making 12.75/share.
   

1. So some of the figures are 0.87c for earnings = 31.25% yield if
   div paid, typical good yield around 8% which is 400%
   
2. Cash backing alone is AUD214.7mln/1608mln = 13.35c/share over 400% from current SP of 3.2c
   
3. NTA have the SP at around 25% of NTA making 12.75/share, very
   close to 400% from here
   

It has already been hammered for the unknown, the speculation has ended and the results have arrived. Based on this I think a short term target of 12c is warranted on this info. What the market does however is anyone's guess. Of course there may be other developments such as director buying and takeover offers that change the scene. If you were
offered 12c would you take it, or would you like to see it the dollars it once was?