$1 Club, page-26544

While everyone is arguing here it's important to realize that you're all wrong and you're all correct. How many times do you see one broker provide a target rating on a company and then a day later another broker will provide something completely different? The difference in valuations is what makes the market work. It's all about the method you use. I don't think you can discount enterprise value because if the company sold off the asset they would expect to get at least what they paid for it otherwise it would be classed as an impairment. I can't imagine the asset that they are part way through purchasing being an impairment before they have even purchased it. The investment must hold some value whether the market is calculating based on that value or not.

Thinking that the current share price is an accurate representation of what the business is worth would be a mistake imo. Have a look across the entire sector, this is what I like to call "the too cheap price". Most companies in the sector are now oversold to some degree which sets up a December trade for institutions. Remember sector rotation occurs when one sector reaches peak value and another sector becomes undervalued.