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24/06/09
11:33
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To play devils advocate.
From memory, the diamonds were going to produce a cashflow profit of $10M/year.
In the current environment for a minnow that was earning money, I would expect a PE ratio of between 4-6.
So conservatively, a PE of 4 would give a company value of $40M.
With about 1.1B shares on issue, that equates to a shareprice of 3.6 cents.
Yes, would be a buy if you think that they will be producing diamonds soon.
I have a beautiful bridge in Sydney that I'm selling too if you're interested!
;^)
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