anyone trade this?, page-4

re PPunter23's strange reasoning.

to assume current eps at the average eps of 08-10 does not seem a reasonable guide to the future, and the market recognises that in the current price trend.

At 20p, an eps of 4p = pe 5 i.e. earnings on investment of 20%pa and
an eps of 6p = pe 3.3 ie earnings on investment of 30%pa!

A sp limit of 20p seems to me to be absurdly low.

a forward eps of 4-6p seems very likely and at 30p the earnings %pa would be 13.3 - 20%, so 30p is not unreasonable and is the current market level.

I do agree however that they have bid for work at marginal rates and that has been reflected in eps to 2010.