A price of $27 a share (AU$5.30) is a respectable cash bid for Felix and around $25 a share in stock.
Felix will treble coal production in 3 years time with more to go for.
Profits this year should come out at around $400+ million and treble that $1.2 billion ($850 million after tax). A $2.50 dividend FULLY FRANKED would cost $490 million, leaving $360 million to carry over. YES INDEED! Even $3.00 could easily be afforded: At $27 a share and a dividend of $3.00, Felix would be on a yield fully franked of 11% on a PE6.2. Some might say, "STILL CHEAP" for 2013.
ANYTHING UNDER AU$27 IS A STEAL and a shame on the management of Felix Resources.
FLX Price at posting:
$16.90 Sentiment: None Disclosure: Held
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