First Method: Total equity= $759m Outstanding shares = 495m Asset value= 759/495= $1.53
Second Method: Take away Goodwill for litmus test=$239 New total equity= $759-$239=$520 Outstanding shares = 495m Asset value/ share = 520/495= $1.05
At 87c its a 17% discount and at 1.53 valuation its a 43% discount.
Its trading below a going concern would be valued................
No point putting intrinsic value as mr market maker does not believe in that for this stoxx at the moment........I am sure sharks have been circulin around this for some time and if I read between the lines AA raised his stake over 20% to stop any hostile takeovers, now that the hard yards have been done would have attracted many investors.
What competitive advantage APT and Square merger provides, can be seen with HUMM and Westpac too ...........how much MOJO can RJ, can create from that is to be seen....................IMO....DYOR....
HUM Price at posting:
87.0¢ Sentiment: Buy Disclosure: Held
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