new research report 9th july, page-9

I looked at this 9 July report. A statement in the valuation section indicates that they may have done the currency conversion incorrectly:

"If our earnings estimates are correct, then Metabolic Pharmaceuticals should turn profitable in FY08. Based on FY08 and FY09 earnings, a multiple of 30, and a discount rate of 40%, an indicated current valuation of $2.73 US, $1.97A per share is derived."

If their valuation is $US 2.73 this is about $AUD (2.73/.72) = $AUD 3.79.

Comments welcome