Good News & Bad News, page-12437

The profitability and free cash generation of the company - relative to its market capitalization...is hard to comprehend, certainly at least for current SP sellers.

So just a few key one line sentences - which may serve to highlight the scale of what we have here. At least in terms of how cheap the stock is.

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The 61597 dwt Pacific Princess is presently loading PLS spodumene. Should it manage 50000 tons of our product - the profits from this one shipment alone, will put the company on a PE of 35.  ie gross revenues of A$300 m or $180m after tax profit.

That is the same PE ratio as CSL - Australia's second largest company, listed on the ASX.

The value of the "raw" product will be amongst  the most valuable commodity metal cargoes.... ever to travel the high seas.

At the end of this quarter - the company will have enough cash A$1.6b...for a single 10% yield, dividend  or 24 cents - a major 10 percent buyback of their stock - as well as $350m in cash to cover all of their planned CAPEX.

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In quick summary or observation. This is a really well know stock, relatively speaking.

You could even say for tiny US$4.5b company (by their standards, very tiny).......it is well know by commodity investors around the world - relatively. (Already I think, the company is about 35% foreign owned - plenty of smaller overseas traders involved - as we saw post the Goldman research)

So takeaway here - I think the SP has immediate and even dramatic upside. Maybe on a scale rarely seen, without a news gaping type situation. That $5 plus share price end of year predication is truely on here, based on genuine company fundamentals.  Even alot more than $5 by Christmas.

Also, might be a strange thing to say at this point in time ......but this is exactly a stock than can even overshot true value..... into next year. (talking 15 or 18, as expansion ramps up and hype - so watch out for that).

It is a case of probably... do nothing, but watch out for something really, really exciting here, in terms of SP. (fundamentals). We shall see - starting this week possibly.